John Miller
Mellow Mushroom Pizza Bakers is an American pizza restaurant chain that was established in 1974 in Atlanta, Georgia. The restaurant industry is incredibly competitive, but Mellow Mushroom has successfully expanded its business through franchising. The franchise fee for a Mellow Mushroom restaurant is between $20,000 and $50,000, with total investment costs ranging from $100,000 to over $1 million. As of 2020, there were 187 Mellow Mushroom locations across the United States, with over 200 locations across 20 states reported in other sources. Each store is locally owned and operated, with unique decorations and a unifying theme. This paragraph introduces the topic of how many Mellow Mushroom franchises there are, providing an overview of the company's history, business model, and expansion through franchising.
| Characteristics | Values |
|---|---|
| Number of franchises | 170 to over 200 locations |
| Year of incorporation | 1975 |
| Year of first franchising | 1987 |
| Initial franchise fee | $20,000 to $50,000 |
| Total upfront investment | $1,624,000 to $2,391,000 |
| Initial training program | 267 hours |
| Number of states with franchises | 16 to 20 |
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What You'll Learn
Mellow Mushroom franchise fees
Mellow Mushroom is an American pizza restaurant chain that was established in 1974 in Atlanta, Georgia. The company prides itself on offering a unique experience to customers, with colourful art, music, and a wide range of food and drinks. Each Mellow Mushroom store is locally owned and operated, with a distinct decor and atmosphere. The franchise has expanded across the United States, with over 150 to 200 locations in 20 states.
The Mellow Mushroom franchise fee is $50,000, which grants franchisees the right to use the Mellow Mushroom name, logo, and business model. This fee is part of the initial investment, which ranges from $1,646,000 to $2,591,000, or even upwards of $2 million, depending on various factors. This initial investment does not include the cost of real estate. In addition to the franchise fee, there is also a brand fund fee of 2% and a royalty of 5%, both calculated based on gross sales.
The franchise fee covers training and support from Mellow Mushroom, which includes training at the Atlanta, Georgia headquarters, at the new store, and ongoing support after opening. Franchisees are taught everything they need to know to open, run, and profit from a Mellow Mushroom location. To become a Mellow Mushroom franchisee, individuals must meet certain criteria, such as having minimum liquid assets of $500,000. Each signed franchise agreement grants the franchisee the right to operate a Mellow Mushroom location for 15 years.
The total investment for a Mellow Mushroom franchise varies, and potential franchisees should carefully consider their financial situation before making a decision. While Mellow Mushroom does not publicly release its franchise earnings potential, it is estimated that earnings can vary depending on factors such as location, restaurant size, labour costs, and the owner's experience. For example, a franchise in a major city may earn more than one in a small town, and an experienced owner may have higher earnings than a new franchisee.
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Expansion of the Mellow Mushroom franchise
Mellow Mushroom Pizza Bakers is an American pizza restaurant chain that was established in 1974 in Atlanta, Georgia. The franchise is operated by Home Grown Industries, Inc. of Georgia, with locations across the United States. Each store is locally owned, operated, and decorated differently, often featuring tie-dye and colourful mushrooms. The franchise began offering franchise opportunities in 1987, and by the late 1980s, they had opened several franchise locations.
The expansion of Mellow Mushroom can be attributed to its franchise model, which offers a proven business system and operational support to franchisees. The franchise fee for Mellow Mushroom is up to $50,000, with an overall upfront investment ranging from $1,624,000 to $2,391,000. This investment includes real estate acquisition, building construction, equipment purchases, inventory, and working capital. Mellow Mushroom provides extensive training to franchisees, including 267 hours of initial training, with 115 hours of classroom training and 152 hours of on-the-job training.
The franchise has expanded beyond its initial locations in Atlanta, Georgia, to several dozen locations across the state and beyond. In 2000, Mellow Mushroom began expanding outside college markets to urban areas such as Jacksonville, Florida, and Denver, Colorado. As of 2020, there were 187 franchised locations in the United States, with a presence in 19 states. Mellow Mushroom has continued to grow, and as of 2025, they have over 100 stores in 16 states, with additional locations under development in Arizona, Colorado, Tennessee, and North Carolina.
The success of Mellow Mushroom's expansion can be attributed to its unique offering of not just pizza but also calzones, hoagies, salads, and appetizers, along with a wide selection of beer. Each location also offers a unique experience with its locally-inspired decorations and occasional live music, trivia competitions, karaoke, or bingo. The franchise has cultivated a dedicated customer base that has contributed to its successful expansion across the United States.
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Mellow Mushroom franchise locations
Mellow Mushroom Pizza Bakers is an American pizza restaurant chain that was established in 1974 in Atlanta, Georgia, as a single pizzeria. It has since expanded to become a franchise under the banner of Home-Grown Industries, Inc. of Georgia, with locations across the United States. Each Mellow Mushroom restaurant is locally owned, operated, and decorated, often featuring tie-dye and colourful mushrooms as a unifying theme. Some locations also offer entertainment such as live music, trivia competitions, karaoke, or bingo.
The first Mellow Mushroom franchise outside of Atlanta was in Athens, Georgia, near the University of Georgia. The franchise has expanded to several dozen locations in Georgia and other states, including college markets and urban areas such as Jacksonville, Florida, and Denver, Colorado. As of 2020, there were 187 franchised Mellow Mushroom locations in the United States, with a presence in 19 states. Mellow Mushroom has continued to grow, and by some estimates, now has over 200 locations across 20 states, with more under development in Arizona, Colorado, Tennessee, and North Carolina.
The Mellow Mushroom franchise opportunity offers a range of benefits to franchisees, including training, operations assistance, and advertising support. The franchise also provides access to proven systems and operational support. The initial franchise fee is up to $50,000, with overall upfront investment ranging from $1,624,000 to $2,391,000. This includes various costs such as real estate acquisition, equipment purchases, inventory, and signage. Franchisees also contribute to national advertising funds and may incur technology fees, supply chain markups, or renewal fees.
Mellow Mushroom provides comprehensive support to franchisees, including an initial training program of 267 hours, consisting of classroom training and on-the-job training, and ongoing support after the opening of the franchise location. The franchise offers territory protections and assists franchisees in understanding their financing options. With the provided resources and support, Mellow Mushroom has made the process of opening a new pizzeria location more accessible and straightforward for franchisees.
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The cost of opening a Mellow Mushroom franchise
Mellow Mushroom is an American pizza restaurant chain that was established in 1974 in Atlanta, Georgia. The chain has since expanded to over 200 locations across 20 states, with each store being locally owned, operated, and decorated differently. The total estimated initial investment to open a Mellow Mushroom franchise ranges from $1.65 million to $2.64 million. This includes startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses.
When considering the costs of opening a Mellow Mushroom franchise, it is important to factor in the initial investment costs as well as the ongoing operational costs. While the median gross sales for Mellow Mushroom franchises are not publicly disclosed, there are key factors that influence the performance of franchisee median gross sales. These include the brand's recovery from the pandemic, its focus on unique and high-quality ingredients, and the creation of a memorable dining experience, all of which contribute to sustained customer loyalty.
Additionally, economic factors such as inflation and rising food costs may impact profit margins. However, Mellow Mushroom's ability to adapt with menu pricing strategies and operational efficiencies can help mitigate these impacts. The expansion into new markets and the increasing popularity of delivery and takeout services have also likely contributed to improved sales performance. Ongoing operational costs that franchisees should consider include labor costs, such as employee wages, benefits, and payroll taxes.
It is worth noting that there may be additional costs beyond the standard fees, including specific marketing efforts, technology updates, or other operational needs as outlined in the franchise agreement. Conducting thorough due diligence and speaking with existing franchisees can provide a more accurate financial outlook when considering opening a Mellow Mushroom franchise.
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Mellow Mushroom franchise support
Mellow Mushroom Pizza Bakers is an American pizza restaurant chain that was established in 1974 in Atlanta, Georgia. It operates as a franchise under the banner of Home-Grown Industries, Inc. of Georgia, with 170 locations across the United States. The franchise has expanded outside of college markets to urban areas, with over 200 locations in 20 states.
Mellow Mushroom offers extensive support to its franchisees, including:
Site Selection and Lease Negotiation
The franchisor provides support during the process of selecting a suitable location for the restaurant. This includes conducting market research, negotiating lease terms, and ensuring the site meets all operational requirements.
Training
Before opening, franchisees undergo comprehensive training provided by Mellow Mushroom. This includes hands-on experience at an existing location and covers all aspects of running the business, such as operations, marketing, and customer service.
Build-Out and Pre-Opening
The construction and design of the restaurant follow the brand's specifications, allowing for creative freedom while adhering to the brand's standards.
Grand Opening Support
The franchisor offers ongoing support during the critical grand opening phase to ensure a successful launch.
Marketing and Brand Initiatives
Mellow Mushroom has a strong brand identity, known for its unique, art-inspired atmosphere and high-quality stone-baked pizzas. Franchisees benefit from marketing and brand initiatives funded by the Brand Development Fund Fee, which is contributed by franchisees as a percentage of their weekly gross sales.
Operational Assistance
Mellow Mushroom provides operational support to franchisees, helping them navigate the competitive restaurant industry and ensuring a smooth entry into the market.
Technology Updates
The franchise assists with maintaining and updating technology infrastructure, such as point-of-sale systems and online ordering platforms, although these costs are typically structured as additional fees.
Advertising Support
Franchisees receive advertising support, including access to national advertising funds, to promote their locations and offerings effectively.
Community Engagement
Mellow Mushroom locations often feature live music, trivia competitions, karaoke, or bingo, fostering a community-oriented vibe that attracts a loyal customer base.
With its comprehensive support system, Mellow Mushroom enables franchisees to establish and operate successful restaurants within its unique and recognized brand identity.
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Frequently asked questions
As of 2020, there are 187 Mellow Mushroom franchises in the United States. However, one source states that there are over 200 locations across 20 states.
The upfront investment to open a Mellow Mushroom franchise ranges from $1,624,000 to $2,391,000. This includes the initial franchise fee of up to $50,000, as well as real estate costs, equipment purchases, and pre-opening advertising.
Mellow Mushroom offers comprehensive support to franchisees, including an initial training program of 267 hours, ongoing operational assistance, and marketing and advertising support.
In addition to the initial investment, franchisees are required to pay ongoing fees such as royalties (typically 4-8% of gross sales), advertising cooperative fees, and technology fees. These fees fund operational assistance, marketing initiatives, and technology updates.
The salary of a Mellow Mushroom franchise owner depends on various factors, including gross sales, operational efficiency, franchisor fees, and additional expenses such as rent, utilities, and payroll. Effective management of these factors can impact the financial success of the franchise owner.
