SOUTH BEND CHOCOLATE COMPANY
South Bend Chocolate Company, Inc., The
Company Information
3300 West Sample StreetSouth Bend, IN 46619
The South Bend Chocolate Company, Inc. (SBCC), an Indiana corporation formed in August of 1994, conducts business and operates a franchising system under the names “The South Bend Chocolate Company” and “Chocolate Cafe.” Its predecessor, The South Bend Chocolate Company was an unincorporated sole proprietorship owned and operated by Mark A. Tarner, the founder and president of SBCC. The principal offices of SBCC and its predecessor are located at 3300 W. Sample Street, South Bend, Indiana 46619.
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Franchise Rating
Franchimp Summary Rating
3/10
Investment Accessibility
3/10
Franchise System Development
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Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $55,000 Maximum: $57,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $85,700 Maximum: $111,005
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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