Melt Shop on expansion mission
Melt Shop franchisee Drew Smith has assumed ownership of the company's King of Prussia Mall location in King of Prussia, Pennsylvania, located just northwest of central Philadelphia, according to a company press release. The transfer marks Smith's first Melt Shop restaurant and the company's inaugural franchise location in the U.S. An additional 21 restaurants are planned under Smith's leadership in Pennsylvania, Delaware and New Jersey.
"Upon signing the development agreement, we began to discuss the most effective way to propel this partnership. One of our most successful restaurants — KOP — falls perfectly in his territory. By transitioning that restaurant to Drew and his team, we knew it would give him the ability to have a strong launch," said Josh Morgan, COO of Melt Shop. "One of the key fundamentals of our franchise program is to find the right partners and make sure they succeed. With this transition, Drew and his team will have the right tools and recourses. They'll learn the ins and outs of Melt Shop, effectively cutting their learning curve in half, inherit an experienced team and be more effective in building the brand in the greater Pennsylvania, Delaware and New Jersey markets.
A Pennsylvania native, Smith is a seasoned multi-unit franchisee with more than 23 years of experience in the fast casual industry. He owns and operates 23 Five Guys locations throughout the greater Philadelphia area, and in December 2017, signed a development agreement with Melt Shop to bring 21 restaurants to Melt Shop's portfolio of restaurants. Prior to his career in franchising, Smith earned an masters in business administration from Duke University and worked in private equity investing.
"Pennsylvania is home and I have a lot of experience within the market. Acquiring the local Melt Shop was the perfect way for me to kick-off my relationship with the leader of the melted sandwich movement," Smith said. "I feel honored to be entrusted with one of Melt Shop's most successful locations and I'm enthusiastic to work with the team to continue propelling that success forward."
Since the announcement of the company's franchise program in late 2017, Melt Shop has signed agreements to develop 28 restaurants worldwide in key northeasterb and mid-Atlantic markets, as well as the Middle East.
The company debuted in Kuwait in January and opened the first of seven planned franchise locations in the market with restaurants two and three opening in Q2.
To continue driving its rapid growth, Melt Shop is seeking multi-unit franchisees domestically in the Northeast, Midwest, and Florida, and in most international markets, including the Middle East, Southeast Asia, Japan, China, India, Mexico, South America, Canada, Western Europe and Australia.
Melt Shop has an estimated initial investment range of $368,240 – $698,800 for the first location, including a franchise fee of $35,000 and a sales range of $1,016,984 – $1,640,406 (sales range based on Melt Shops' six corporate restaurants open over 12 months as of end of 2016, as referenced in Item 19 of the 2017 FDD).
Topics: Franchising & Growth