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The real numbers on owning a Mellow Mushroom franchise
Restaurant - Pizza/Casual Dining · FDD 2026 · from public state filings
DDisclosure honesty
This franchisor discloses earnings (Item 19) — but read how.
Investment
$1,330,000–$2,051,000
Total fees
8% of sales
Outlets
161
Closure signals
4 ceased, 0 terminated
Lawsuits
0
What their own earnings claim actually says
Discloses only gross sales (avg $2.68M, median $2.62M) for 154 franchised units in 2025. No costs, expenses, or profit data provided. Cherry-picks top/bottom quartiles but omits net income entirely.
Honesty grade D: the disclosed numbers are incomplete or framed to look better than an owner's real take-home.
Failure & turnover reality (Item 20)
Net loss of 5 franchised units in 2025; 4 ceased operations, 1 reacquired by franchisor; system shrinking.
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The franchisor won't put real owner profit in writing. We do — reconstructed from their own FDD.
Franchisor's framing: Discloses only gross sales (avg $2.68M, median $2.62M) for 154 franchised units in 2025. No cos…
🔒 Real estimated owner take-home (low / median / high) — unlocked in the report
Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
Break-even timeline + cash-on-cash ROI on your investment
Full fee stack + required-purchase markups
Decoded real failure / closure rate
How it ranks vs comparable franchises
Validation-call playbook — who to call + the exact questions
The FDD lists a total initial investment of about $1,330,000–$2,051,000, including a $50,000 initial franchise fee.
How much do Mellow Mushroom franchise owners make?
Discloses only gross sales (avg $2.68M, median $2.62M) for 154 franchised units in 2025. No costs, expenses, or profit data provided. Cherry-picks top/bottom quartiles but omits net income entirely. We grade this disclosure D for honesty.
What is the Mellow Mushroom franchise failure rate?
Net loss of 5 franchised units in 2025; 4 ceased operations, 1 reacquired by franchisor; system shrinking.
Is a Mellow Mushroom franchise worth it?
It depends on the numbers, not the pitch. Mellow Mushroom scores D on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: MN CARDS 35401-202602-02 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Mellow Mushroom or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.