How much does a Mellow Mushroom franchise cost?
Opening a Mellow Mushroom franchise takes a total initial investment of $1,330,000 to $2,051,000, according to the brand's 2026 Franchise Disclosure Document. The FDD's Item 19 reports annual gross sales of $2,623,325 across 154 outlets.
Mellow Mushroom franchises and operates restaurants under the trade name “Mellow Mushroom” that specialize in freshly prepared pizzas and hoagie sandwiches. Category: Food & Beverage.
Item 7
What it costs to open a Mellow Mushroom franchise
The franchisor's own estimated initial investment, as disclosed in its 2026 FDD. The total is $1,330,000 to $2,051,000. Each line below carries the FDD page it was read from.
Where the money goes
The largest costs are Leasehold Improvements ($675,000 to $1,100,000), Equipment ($250,000 to $300,000), and Pre-Opening Labor and Training Expenses ($60,000 to $80,000). Together they make up about 72% of the high-end estimate.
The initial franchise fee is $50,000, about 3.8% of the low-end total.
Our arithmetic from the Item 7 table below.
| Expenditure | Low | High | Source |
|---|---|---|---|
| Initial Franchise Fee2026 FDD, Item 7, p. 13 | $50,000 | $50,000 | 2026 FDD, Item 7, p. 13 |
| Art Package2026 FDD, Item 7, p. 13 | $22,000 | $30,000 | 2026 FDD, Item 7, p. 13 |
| Architectural Fee2026 FDD, Item 7, p. 13 | $25,000 | $40,000 | 2026 FDD, Item 7, p. 13 |
| One Month’s Rent2026 FDD, Item 7, p. 13 | $10,000 | $21,500 | 2026 FDD, Item 7, p. 13 |
| Security Deposit2026 FDD, Item 7, p. 13 | $10,000 | $21,500 | 2026 FDD, Item 7, p. 13 |
| Equipment2026 FDD, Item 7, p. 13 | $250,000 | $300,000 | 2026 FDD, Item 7, p. 13 |
| Leasehold Improvements2026 FDD, Item 7, p. 14 | $675,000 | $1,100,000 | 2026 FDD, Item 7, p. 14 |
| Signage2026 FDD, Item 7, p. 14 | $12,000 | $30,000 | 2026 FDD, Item 7, p. 14 |
| Opening Inventory2026 FDD, Item 7, p. 14 | $35,000 | $50,000 | 2026 FDD, Item 7, p. 14 |
| Small Wares2026 FDD, Item 7, p. 14 | $16,000 | $25,000 | 2026 FDD, Item 7, p. 14 |
| Pre-Opening Labor and Training Expenses2026 FDD, Item 7, p. 14 | $60,000 | $80,000 | 2026 FDD, Item 7, p. 14 |
| Insurance2026 FDD, Item 7, p. 14 | $5,000 | $8,000 | 2026 FDD, Item 7, p. 14 |
| Furniture2026 FDD, Item 7, p. 14 | $40,000 | $60,000 | 2026 FDD, Item 7, p. 14 |
| POS System and other Back-Office Technology System2026 FDD, Item 7, p. 14 | $5,000 | $50,000 | 2026 FDD, Item 7, p. 14 |
| Audio-Visual Equipment2026 FDD, Item 7, p. 14 | $20,000 | $40,000 | 2026 FDD, Item 7, p. 14 |
| Miscellaneous Opening Costs2026 FDD, Item 7, p. 14 | $10,000 | $15,000 | 2026 FDD, Item 7, p. 14 |
| Double-Stack Hot Rocks Oven with Install2026 FDD, Item 7, p. 14 | $60,000 | $70,000 | 2026 FDD, Item 7, p. 14 |
| Additional Funds - 3 months2026 FDD, Item 7, p. 14 | $25,000 | $60,000 | 2026 FDD, Item 7, p. 14 |
| Total estimated initial investment2026 FDD, Item 7, p. 13-14 | $1,330,000 | $2,051,000 | 2026 FDD, Item 7, p. 13-14 |
Source Mellow Mushroom, 2026 FDD, Item 7, p. 13-14, via Public FDD bucket (storage.googleapis.com/franchiseindx_fdds) (source record). Figures read and verified 2026-09-14.
Item 19
What Mellow Mushroom franchisees actually report earning
Annual Gross Sales
$2,623,325
Mellow Mushroom's 2026 FDD, Item 19, for the September 30, 2024, through September 28, 2025 (the “2025 Measured Period”). Basis: All 154 franchised Mellow Mushroom restaurants that operated during the entire 2025 Measured Period.
Sample size: 154 outlets. The FDD also reports annual gross sales of $2,681,947. We lead with the median because an average is pulled upward by the strongest outlets; the median is the middle outlet.
What the franchisor excluded from this figure
- Two franchised restaurants that were closed for remodeling for an average of one week during the 2025 Measured Period were excluded.
- One franchised restaurant that we reacquired during the 2025 Measured Period and therefore was not a franchised restaurant during the entire 2025 Measured Period was excluded.
This is a disclosure of what some existing outlets reported, not a projection of what a new Mellow Mushroom outlet would earn. Your results will differ.
Source Mellow Mushroom, 2026 FDD, Item 19, p. 68-71, via Public FDD bucket (storage.googleapis.com/franchiseindx_fdds) (source record). Figures read and verified 2026-09-14.
Item 20
How many Mellow Mushroom outlets there are, and how many closed
Mellow Mushroom ended 2025 with 156 franchised outlets and 5 company-owned outlets. In that year no franchised outlets opened and 5 left the system.
Three years at a glance
From 2023 through 2025, Mellow Mushroom opened 7 franchised outlets and 15 outlets left the system. That is a net loss of 8, from 164 to 156 franchised outlets. Of the outlets that left, 2 were not renewed, 2 were bought back by the franchisor, and 11 closed for other reasons.
On average, about 3.1% of franchised outlets left the system each year, roughly 1 in 32.
Our arithmetic from the FDD's Item 20 table below. "Left the system" counts every outlet the franchisor reports as terminated, not renewed, bought back, or closed for other reasons.
| Year | Start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | End | Source |
|---|---|---|---|---|---|---|---|---|
| 2025 | 161 | 0 | 0 | 0 | 1 | 4 | 156 | 2026 FDD, Item 20, p. 75 |
| 2024 | 158 | 6 | 0 | 0 | 1 | 2 | 161 | 2026 FDD, Item 20, p. 75 |
| 2023 | 164 | 1 | 0 | 2 | 0 | 5 | 158 | 2026 FDD, Item 20, p. 75 |
Source Mellow Mushroom, 2026 FDD, Item 20, p. 72-75, via Public FDD bucket (storage.googleapis.com/franchiseindx_fdds) (source record). Figures read and verified 2026-09-14.
Compare
How Mellow Mushroom compares with other Food & Beverage franchises
Measured against the 256 Food & Beverage franchises on this site, using each brand's own FDD.
- Cost to open. The middle of Mellow Mushroom's estimated range is $1,690,500. It costs more to open than 85% of Food & Beverage franchises here.
- Outlets leaving each year. 3.1% for Mellow Mushroom. That is lower than 71% of the 165 Food & Beverage franchises with at least 10 outlets.
- Three-year growth. Mellow Mushroom's franchised system shrank 4.9%. The typical Food & Beverage franchise here grew 5.0%.
- Earnings disclosure. 152 of the 256 Food & Beverage franchises here publish earnings figures in Item 19. Mellow Mushroom is one of them.
Our arithmetic from each brand's Item 7 and Item 20. Growth and departure comparisons leave out brands with fewer than 10 outlets, where one opening or closure distorts the figures. See every Food & Beverage franchise side by side.
Alert me when Mellow Mushroom files a new FDD
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