Mellow Mushroom franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.22 ↗

Franchise fees and ongoing costs

Franchise fee

$30,000 to $50,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

5% · 5% of Restaurant's Weekly Gross Sales, due weekly by Friday

Marketing contribution

3% (basis not captured; see original filing)

Technology fee

Up to $700/month for technology system support, software, and upgrades (depends on users/locations)

Other fees

Franchise System Website fee up to $100/month; Additional Training $1,000/person plus expenses; Non-Compliance Fee $250-$1,000 per deviation

Working capital (FDD Item 7)

$25,000-$60,000 for fast-fine format; $60,000 for traditional format; covers initial expenses before opening and first 3 months of operation, excluding any draw or salary for owner

Fees sourceFDD p.14 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.22 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

average, median, high/low annual and weekly Gross Sales (franchised restaurants only; no profit/EBITDA metric)

Reporting period

2025 Measured Period: September 30, 2024 through September 28, 2025 (52-week fiscal year)

Sample

154 franchised restaurants open during the entire 2025 Measured Period (all U.S.); also broken out for top 25% (38 restaurants) and bottom 25% (38 restaurants)

Reported average

$2,681,947

Reported median

$2,623,325

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.76 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

161

Year-end outlets

156

Net change

-5

Derivation

ending minus starting outlets

Openings

0

Terminations

0

Non-renewals

0

Other closures

4

Reacquisitions

1

Transfers

1

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.80 ↗

SBA loan history

Loan activity

12 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$475,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

4 loans

Historical charge-off share

12.90%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

12 / 93

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Mellow Mushroom franchise cost?

fast-fine fast-casual (shell premises, leased): $1,330,000 to $2,051,000; traditional full-service (shell premises, leased): $1,695,000 to $2,916,500 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $30,000 to $50,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.22 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Mellow Mushroom owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: average, median, high/low annual and weekly Gross Sales (franchised restaurants only; no profit/EBITDA metric). Sample: 154 franchised restaurants open during the entire 2025 Measured Period (all U.S.); also broken out for top 25% (38 restaurants) and bottom 25% (38 restaurants). Period: 2025 Measured Period: September 30, 2024 through September 28, 2025 (52-week fiscal year).

Item 19 performance sourceFDD p.76 ↗

What's the SBA charge-off rate for Mellow Mushroom?

12.90%; numerator / denominator: 12 / 93. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $475,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 4 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗