Mellow Mushroom Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Number of franchises

161

-2%

Investment required

$1,688,000 - $4,832,000

Revenue (AUV)

Mellow Mushroom: Elevating the Pizza Experience with Unique Flavors and Atmosphere

Founded in 1974 in Atlanta, Georgia, Mellow Mushroom Pizza Bakers began as a single pizzeria created by two college students from Georgia Tech, later joined by a third from the University of Georgia. The founders aimed to craft a dining experience that mirrored their eclectic philosophies and passion for quality pizza.

Over the years, Mellow Mushroom has expanded significantly, operating as a franchise under Home Grown Industries, Inc. of Georgia, with over 200 locations across 20 states. Mellow Mushroom specializes in stone-baked pizzas, calzones, hoagies, salads, and appetizers like pretzel bites, complemented by an extensive selection of craft and local beers.

Each restaurant is locally owned and uniquely decorated, often featuring tie-dye motifs and colorful mushroom imagery, creating a distinctive and vibrant atmosphere. Some locations also host live music, trivia competitions, karaoke, or bingo, enhancing the community-centric experience.

A hallmark of Mellow Mushroom's approach is its commitment to individuality; no two restaurants are alike. This emphasis on unique, locally inspired décor and ambiance sets it apart from competitors, fostering a one-of-a-kind dining environment that resonates with patrons seeking both quality food and a memorable experience.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

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

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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 the various types of franchises and its costs, 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

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Franchise Disclosure Document

Training

The franchise Mellow Mushroom provides a structured and multi-phase training program for its franchisees. The training programs include:

Initial Training Program: Before the restaurant opens, the franchisor trains the Managing Owner and up to two other designated individuals (which may include the potential Qualified General Manager and assistant managers). This training lasts approximately five weeks—two weeks at a training facility in Atlanta, Georgia, and three weeks at a designated training restaurant. It covers all essential aspects of restaurant operations and may include virtual or online components depending on the franchisor’s discretion.
Corporate Orientation: A 3-hour classroom training session held in Atlanta, Georgia, focused on introducing the corporate structure and expectations.
Brand Development Training: An 8-hour classroom session in Atlanta that covers the Mellow Mushroom brand, values, and marketing principles.
Product Knowledge – Food: This consists of 35 hours of classroom training and 35 hours of on-the-job training, held both in Atlanta and in an approved training restaurant. It focuses on the food items served, preparation, and presentation.
Product Knowledge – LBW (Liquor, Beer, and Wine): A total of 8 hours split evenly between classroom and on-the-job training in Atlanta and an approved restaurant setting.

Territory Protection

Mellow Mushroom grants franchisees an exclusive territory with a one-mile radius around their restaurant. Within this area, no other Mellow Mushroom restaurant will be opened during the franchise term.

However, the franchisor may still deliver products into the area, sell through other channels, and operate different businesses within the territory. Franchisees have no automatic rights to expand or open additional units in adjacent areas.