Mellow Mushroom Franchise FDD, Profits & Costs (2025)
Mellow Mushroom Pizza Bakers was established in 1974 in Atlanta, Georgia, by three college students—two from Georgia Tech and one from the University of Georgia. Their goal was to create a pizza place that reflected their unique perspectives and dedication to high-quality pizza.
Since its inception, Mellow Mushroom has grown into a franchise operated by Home Grown Industries, Inc. of Georgia, with over 200 locations across 20 states. The restaurant is known for its stone-baked pizzas, calzones, hoagies, salads, and appetizers like pretzel bites, along with a wide selection of craft and local beers.
What sets Mellow Mushroom apart from its competitors is its focus on individuality. Each restaurant is designed to reflect its local surroundings, ensuring that no two locations are the same. This dedication to creating unique dining spaces contributes to a memorable experience for guests, offering both great food and an enjoyable atmosphere.
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Initial Investment
How much does it cost to start a Mellow Mushroom franchise? It costs on average between $1,688,000 – $4,832,000 to start a Mellow Mushroom franchised location.
The initial investment for a Mellow Mushroom franchise includes costs for construction, equipment, inventory, and initial operating expenses. The total amount required can vary based on several factors, such as the type of location selected, the geographic area, and whether the franchisee opts to lease or purchase the property. Indeed, Mellow Mushroom offers 3 types of franchises:
| Franchise Option | Initial Investment |
|---|---|
| Mellow Mushroom® restaurant (Lease shell premises for the Restaurant) | $1,688,000 to $2,906,500 |
| Mellow Mushroom® restaurant (Lease premises for the Restaurant that must be retrofit) | $1,688,000 to $2,896,000 |
| Mellow Mushroom® restaurant (Buy real estate and construct a new building for the Restaurant) | $2,904,000 to $4,831,500 |
We are summarizing below the main costs associated with opening a Mellow Mushroom® restaurant (Buy real estate and construct a new building for the Restaurant). For more information on costs required to start a Mellow Mushroom franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $50,000 |
| Art Package Fee | $32,000 – $44,000 |
| Architectural Fee | $96,000 – $156,000 |
| Civil-Engineering Fee | $15,000 – $25,000 |
| Real Estate Purchase | $350,000 – $1,000,000 |
| Site Work | $200,000 – $500,000 |
| Building Construction | $1,400,000 – $1,900,000 |
| Retail Merchandise Display (including Inventory) | $0 – $18,000 |
| Equipment | $280,000 – $400,000 |
| Signage | $40,000 – $95,000 |
| Opening Inventory | $55,000 – $78,000 |
| Small Wares | $28,000 – $40,000 |
| Pre-Opening Labor and Training Expenses | $95,000 – $120,000 |
| Insurance | $5,000 – $8,000 |
| Furniture | $85,000 – $130,000 |
| POS System and other Back-Office Technology System | $8,000 – $50,000 |
| Audio-Visual Equipment | $40,000 – $80,000 |
| Miscellaneous Opening Costs | $15,000 – $17,500 |
| Double-Stack Hot Rocks Oven with Install | $60,000 – $70,000 |
| Additional Funds – 3 months | $50,000 |
| Total Estimated Initial Investment (including real estate purchase and building construction costs) | $2,904,000 – $4,831,500 |
Competitors
Below are a few Mellow Mushroom competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Mellow Mushroom Franchise Disclosure Document
Frequently Asked Questions
How many Mellow Mushroom locations are there?
As of the latest data, Mellow Mushroom has a total of 165 units, with 161 of them being franchised locations and 4 company-owned units.
What is the total investment required to open a Mellow Mushroom franchise?
The total investment required to open a Mellow Mushroom franchise ranges from $1,688,000 to $4,832,000.
What are the ongoing fees for a Mellow Mushroom franchise?
Mellow Mushroom franchisees are required to pay ongoing fees, including a royalty fee of 5% of gross sales and a marketing fee of 2% of gross sales.
What are the financial requirements to become a Mellow Mushroom franchisee?
To become a Mellow Mushroom franchisee, candidates are required to have a minimum net worth and liquid capital of $500,000 each.
Who owns Mellow Mushroom?
The Mellow Mushroom franchise is owned by Home Grown Industries, Inc., a company based in Atlanta, Georgia.
Disclaimer
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