Mellow Mushroom
Food & Beverage · Full-Service Restaurants
- Active units
- 156
- Royalty
- 5.0%
Franchised, year-end 2025
of weekly Net Sales
About Mellow Mushroom
Mellow Mushroom is a popular brand known for its fresh, stone-baked pizzas, salads, wings, and burgers. Whether you prefer to order online for delivery or carry out, or dine in-store, Mellow Mushroom offers a delicious and diverse menu to satisfy your cravings. They also have vegan and gluten-free options available for those with dietary restrictions. In addition to their food offerings, Mellow Mushroom provides a range of libations, including beer and cocktails, to complement your meal. They also offer catering services, making them an excellent choice for your next event. With over 40 years of experience, Mellow Mushroom is committed to delivering the highest quality and freshest ingredients in their pizzas. They also have a passion for quality behind their bars, ensuring that their customers have a great dining experience. If you're looking for a unique experience, be sure to check out their art tour and explore their collection of artwork displayed in their restaurants. Join their eclub for exclusive deals and surprises, and don't forget to grab a Mellow Mushroom gift card to treat your loved ones.
Key terms
- Franchise fee
$50k
- Multi-unit (DRA) pricing
$40,000 for second unit; $30,000 for third and each subsequent unit under DRA
- Brand fund
3.0% of Net Sales
- Local advertising
1.0% of Net Sales
- Footprint
2,800 – 5,500 sq ft
- Development Rights Agreement (DRA) development fee
$0
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing).
Growth
- Total locations156
Franchised units open at year-end
- New openings0
Gross new units opened during the calendar year
- 1-year unit growth rate-3.1%
Net unit growth versus prior year
- 3-year unit CAGR-0.6%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio0.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$2.3M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open18 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.