LAST UPDATED: June 2026
FRANCHISE WEBSITE: https://www.mellowmushroom.com/franchising/
1851 NEWSROOM: https://1851franchise.com/mellow-mushroom
NUMBER OF LOCATIONS: 161
REPORTED COST TO GET IN: $1,330,000 - $4841,500
REPORTED ROI (Item 19): $2,681,947 (average gross sales, FY 2025)
Mellow Mushroom is a nationally recognized pizza franchise that combines an eclectic, art-filled atmosphere with a gourmet menu of handcrafted pizzas, sandwiches, wings and salads.
Mellow Mushroom was founded in 1974 by college students Marc Weinstein, Rocky Reeves and Michael Nicholson in Atlanta, Georgia, and began franchising in 1987. The brand operates under the parent company Home-Grown Industries of Georgia, Inc. and remains based in Atlanta.
Mission: To craft crave-worthy pizza and food experiences with relentless passion and unwavering commitment to quality, all within spaces that spark imagination.
Vision: To be the defining name in the premium pizza category and one recognized for culinary creativity, artistic spirit and an unforgettable guest experience.
Mellow Mushroom continues to grow in key metro areas and suburban markets across the United States. Interested parties can contact Mellow Mushroom directly for more information about franchise opportunities and territory availability.
Initial Costs: The estimated initial investment to open a Mellow Mushroom franchise ranges from $1,330,000 to $2,916,500 for leased locations and $2,911,000 to $4,841,500 if you purchase the real estate. The 2025 Franchise Disclosure Document (FDD) breaks these costs down as follows:
| Type of Expenditure | Lease | Purchase | ||
Min | Max | Min | Max | |
| Initial Franchise Fee | $50,000 | $50,000 | $50,000 | $50,000 |
| Art Package Fee | $32,000 | $44,000 | $32,000 | $44,000 |
| Architectural Fee | $75,000 | $138,000 | $96,000 | $156,000 |
| One Month's Rent | $10,000 | $21,500 | $0 | $0 |
| Security Deposit | $10,000 | $21,500 | $0 | $0 |
| Civil Engineering Fee | $0 | $0 | $15,000 | $25,000 |
| Real Estate Purchase | $0 | $0 | $350,000 | $1,000,000 |
| Site Work | $0 | $0 | $200,000 | $500,000 |
| Building Construction | $0 | $0 | $1,400,000 | $1,900,000 |
| Retail Merchandise Display | $0 | $18,000 | $0 | $18,000 |
| Equipment | $280,000 | $400,000 | $280,000 | $400,000 |
| Leasehold Improvements | $750,000 | $1,500,000 | $0 | $0 |
| Signage | $40,000 | $70,000 | $40,000 | $95,000 |
| Opening Inventory | $55,000 | $78,000 | $55,000 | $78,000 |
| Small Wares | $28,000 | $40,000 | $28,000 | $40,000 |
| Pre-Opening Labor and Training | $95,000 | $120,000 | $95,000 | $120,000 |
| Insurance | $5,000 | $8,000 | $5,000 | $8,000 |
| Furniture | $85,000 | $130,000 | $85,000 | $130,000 |
| POS System/Back-Office Tech | $5,000 | $50,000 | $5,000 | $50,000 |
| AV Equipment | $40,000 | $80,000 | $40,000 | $80,000 |
| Miscellaneous Opening Costs | $15,000 | $17,500 | $15,000 | $17,500 |
| Double-Stack Hot Rocks Oven | $60,000 | $70,000 | $60,000 | $70,000 |
| Additional Funds (3 Months) | $60,000 | $60,000 | $60,000 | $60,000 |
Initial Franchise Fee: The initial franchise fee is $50,000, due upon signing the franchise agreement. If signing a Development Rights Rider (for two or more restaurants), the fee structure includes $25,000 deposits per additional unit.
Ongoing Fees: According to the 2026 FDD, Mellow Mushroom franchisees are responsible for the following ongoing payments and fees:
| Type of Fee | Amount |
| Royalty | 5% of gross sales/week |
| Brand Development Fund | 3% of gross sales/week |
| Franchise System Website | Up to $100/month |
| Digital Convenience Fees | $0.30 for each online order/week |
| Technology System Support | Up to $700/month |
ROI Potential: According to the 2026 FDD, the 154 franchised Mellow Mushroom restaurants operational for the entirety of FY 2025 reported the following gross sales:
| Category | Average | Median | High | Low |
| Top 25% (38) | $3,812,608 | $3,611,602 | $6,066,962 | $3,039,278 |
| Bottom 25% (38) | $1,746,520 | $1,833,992 | $2,139,256 | $991,191 |
| Total (154) | $2,681,947 | $2,623,325 | $6,066,962 | $991,191 |
Mellow Mushroom provides assistance with site selection through defined criteria and evaluation of proposed leases. The franchisor also oversees the restaurant's design and build-out, recommending or approving architects and general contractors while providing a specific design package and an exclusively commissioned art package. Additionally, Mellow Mushroom provides a pre-opening labor guide and on-site support for up to three weeks during the opening period.
The initial training program is a mandatory five-week course for the managing owner and up to two managers. It consists of approximately two weeks of classroom and hands-on training at the franchisor’s facility in Atlanta and three weeks of on-the-job training in a designated training restaurant. The curriculum covers a wide array of operational subjects, including product knowledge, food safety, equipment maintenance, cost controls, point-of-sale systems and hospitality. Franchisees operating three or more locations must also appoint an area manager who must complete a separate required training program.
Ongoing operational support is provided through periodic inspections and monitoring to ensure adherences. Franchisees gain access to a comprehensive operations manual, which contains over 2,000 pages of standards, procedures, and instructional videos. The franchisor also administers a brand development fund to manage national and regional marketing, promotional materials and menu research and development.
Franchisees are required to use a standardized technology suite that includes a comprehensive Aloha point-of-sale system with both front-of-house and back-office components. This system is integrated with a Kitchen Display System (KDS) for order routing and label printing, as well as software for online ordering and gift/loyalty card processing. The franchisor also maintains a central franchise system website and provides ongoing software updates and security monitoring to ensure PCI compliance.
Mellow Mushroom franchisees are required to have restaurant or multi-unit operational experience, either personally or through a principal in the ownership group. Candidates should also demonstrate strong business acumen and leadership skills, with a willingness to be hands-on in the business or to hire an experienced operator to oversee day-to-day operations.
One owner must be designated as the managing owner, who is obligated to devote their full time and best efforts to the restaurant's development and daily operations. For owners of three or more locations, additional commitments include hiring a full-time area manager and a dedicated marketing resource to maintain brand consistency across all units. Furthermore, franchisees must maintain specific insurance coverages, participate in system-wide gift card and loyalty programs and obtain all necessary local permits and licenses, including a liquor license.
Mellow Mushroom does not offer direct or indirect financing, nor does the franchisor guarantee a note, lease or other obligation.
The U.S. pizza restaurant market (with over 75,000 businesses in the American sector) was recently valued at more than $46 billion and is expected to continue growing (with a CAGR of nearly 3%), driven by consumer demand. Concepts that offer unique ambiance and craft-style offerings, like Mellow Mushroom, are increasingly favored by younger demographics that crave authenticity and quality.
Mellow Mushroom stands out in an increasingly crowded franchised pizza space by drilling down on quality and aesthetics, further focusing on guests via convenience in a franchised setting.
In terms of competition, Mellow Mushroom faces several notable players in the franchised pizza realm, including MOD Pizza, Blaze Pizza, Pizza Hut, Buddy's Pizza, Brixx Wood Fired Pizza, Marco's Pizza, Round Table Pizza, Jet's Pizza and more.
Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our Power Rankings to read more on brands making moves.
Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.
Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
| Mellow Mushroom Experts Investment Range | $1,330,000 + (Leased Fast Fine) - $1,695,000 + (Traditional Real Estate) |
| No. of Units Currently Open | 161 |
| Royalty | 5% |
| Franchise Fee | $50,000 |
Mellow Mushroom
SPONSORED
Franchise Opportunity Deep Dive: Mellow Mushroom blends artistic design, made-to-order food and full-service dining to create a unique and scalable franchise model.
LAST UPDATED: June 2026
FRANCHISE WEBSITE: https://www.mellowmushroom.com/franchising/
1851 NEWSROOM: https://1851franchise.com/mellow-mushroom
NUMBER OF LOCATIONS: 161
REPORTED COST TO GET IN: $1,330,000 - $4841,500
REPORTED ROI (Item 19): $2,681,947 (average gross sales, FY 2025)
Mellow Mushroom is a nationally recognized pizza franchise that combines an eclectic, art-filled atmosphere with a gourmet menu of handcrafted pizzas, sandwiches, wings and salads.
Mellow Mushroom was founded in 1974 by college students Marc Weinstein, Rocky Reeves and Michael Nicholson in Atlanta, Georgia, and began franchising in 1987. The brand operates under the parent company Home-Grown Industries of Georgia, Inc. and remains based in Atlanta.
Mission: To craft crave-worthy pizza and food experiences with relentless passion and unwavering commitment to quality, all within spaces that spark imagination.
Vision: To be the defining name in the premium pizza category and one recognized for culinary creativity, artistic spirit and an unforgettable guest experience.
Mellow Mushroom continues to grow in key metro areas and suburban markets across the United States. Interested parties can contact Mellow Mushroom directly for more information about franchise opportunities and territory availability.
Initial Costs: The estimated initial investment to open a Mellow Mushroom franchise ranges from $1,330,000 to $2,916,500 for leased locations and $2,911,000 to $4,841,500 if you purchase the real estate. The 2025 Franchise Disclosure Document (FDD) breaks these costs down as follows:
| Type of Expenditure | Lease | Purchase | ||
Min | Max | Min | Max | |
| Initial Franchise Fee | $50,000 | $50,000 | $50,000 | $50,000 |
| Art Package Fee | $32,000 | $44,000 | $32,000 | $44,000 |
| Architectural Fee | $75,000 | $138,000 | $96,000 | $156,000 |
| One Month's Rent | $10,000 | $21,500 | $0 | $0 |
| Security Deposit | $10,000 | $21,500 | $0 | $0 |
| Civil Engineering Fee | $0 | $0 | $15,000 | $25,000 |
| Real Estate Purchase | $0 | $0 | $350,000 | $1,000,000 |
| Site Work | $0 | $0 | $200,000 | $500,000 |
| Building Construction | $0 | $0 | $1,400,000 | $1,900,000 |
| Retail Merchandise Display | $0 | $18,000 | $0 | $18,000 |
| Equipment | $280,000 | $400,000 | $280,000 | $400,000 |
| Leasehold Improvements | $750,000 | $1,500,000 | $0 | $0 |
| Signage | $40,000 | $70,000 | $40,000 | $95,000 |
| Opening Inventory | $55,000 | $78,000 | $55,000 | $78,000 |
| Small Wares | $28,000 | $40,000 | $28,000 | $40,000 |
| Pre-Opening Labor and Training | $95,000 | $120,000 | $95,000 | $120,000 |
| Insurance | $5,000 | $8,000 | $5,000 | $8,000 |
| Furniture | $85,000 | $130,000 | $85,000 | $130,000 |
| POS System/Back-Office Tech | $5,000 | $50,000 | $5,000 | $50,000 |
| AV Equipment | $40,000 | $80,000 | $40,000 | $80,000 |
| Miscellaneous Opening Costs | $15,000 | $17,500 | $15,000 | $17,500 |
| Double-Stack Hot Rocks Oven | $60,000 | $70,000 | $60,000 | $70,000 |
| Additional Funds (3 Months) | $60,000 | $60,000 | $60,000 | $60,000 |
Initial Franchise Fee: The initial franchise fee is $50,000, due upon signing the franchise agreement. If signing a Development Rights Rider (for two or more restaurants), the fee structure includes $25,000 deposits per additional unit.
Ongoing Fees: According to the 2026 FDD, Mellow Mushroom franchisees are responsible for the following ongoing payments and fees:
| Type of Fee | Amount |
| Royalty | 5% of gross sales/week |
| Brand Development Fund | 3% of gross sales/week |
| Franchise System Website | Up to $100/month |
| Digital Convenience Fees | $0.30 for each online order/week |
| Technology System Support | Up to $700/month |
ROI Potential: According to the 2026 FDD, the 154 franchised Mellow Mushroom restaurants operational for the entirety of FY 2025 reported the following gross sales:
| Category | Average | Median | High | Low |
| Top 25% (38) | $3,812,608 | $3,611,602 | $6,066,962 | $3,039,278 |
| Bottom 25% (38) | $1,746,520 | $1,833,992 | $2,139,256 | $991,191 |
| Total (154) | $2,681,947 | $2,623,325 | $6,066,962 | $991,191 |
Mellow Mushroom provides assistance with site selection through defined criteria and evaluation of proposed leases. The franchisor also oversees the restaurant's design and build-out, recommending or approving architects and general contractors while providing a specific design package and an exclusively commissioned art package. Additionally, Mellow Mushroom provides a pre-opening labor guide and on-site support for up to three weeks during the opening period.
The initial training program is a mandatory five-week course for the managing owner and up to two managers. It consists of approximately two weeks of classroom and hands-on training at the franchisor’s facility in Atlanta and three weeks of on-the-job training in a designated training restaurant. The curriculum covers a wide array of operational subjects, including product knowledge, food safety, equipment maintenance, cost controls, point-of-sale systems and hospitality. Franchisees operating three or more locations must also appoint an area manager who must complete a separate required training program.
Ongoing operational support is provided through periodic inspections and monitoring to ensure adherences. Franchisees gain access to a comprehensive operations manual, which contains over 2,000 pages of standards, procedures, and instructional videos. The franchisor also administers a brand development fund to manage national and regional marketing, promotional materials and menu research and development.
Franchisees are required to use a standardized technology suite that includes a comprehensive Aloha point-of-sale system with both front-of-house and back-office components. This system is integrated with a Kitchen Display System (KDS) for order routing and label printing, as well as software for online ordering and gift/loyalty card processing. The franchisor also maintains a central franchise system website and provides ongoing software updates and security monitoring to ensure PCI compliance.
Mellow Mushroom franchisees are required to have restaurant or multi-unit operational experience, either personally or through a principal in the ownership group. Candidates should also demonstrate strong business acumen and leadership skills, with a willingness to be hands-on in the business or to hire an experienced operator to oversee day-to-day operations.
One owner must be designated as the managing owner, who is obligated to devote their full time and best efforts to the restaurant's development and daily operations. For owners of three or more locations, additional commitments include hiring a full-time area manager and a dedicated marketing resource to maintain brand consistency across all units. Furthermore, franchisees must maintain specific insurance coverages, participate in system-wide gift card and loyalty programs and obtain all necessary local permits and licenses, including a liquor license.
Mellow Mushroom does not offer direct or indirect financing, nor does the franchisor guarantee a note, lease or other obligation.
The U.S. pizza restaurant market (with over 75,000 businesses in the American sector) was recently valued at more than $46 billion and is expected to continue growing (with a CAGR of nearly 3%), driven by consumer demand. Concepts that offer unique ambiance and craft-style offerings, like Mellow Mushroom, are increasingly favored by younger demographics that crave authenticity and quality.
Mellow Mushroom stands out in an increasingly crowded franchised pizza space by drilling down on quality and aesthetics, further focusing on guests via convenience in a franchised setting.
In terms of competition, Mellow Mushroom faces several notable players in the franchised pizza realm, including MOD Pizza, Blaze Pizza, Pizza Hut, Buddy's Pizza, Brixx Wood Fired Pizza, Marco's Pizza, Round Table Pizza, Jet's Pizza and more.
Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our Power Rankings to read more on brands making moves.
Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.
Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
| Mellow Mushroom Experts Investment Range | $1,330,000 + (Leased Fast Fine) - $1,695,000 + (Traditional Real Estate) |
| No. of Units Currently Open | 161 |
| Royalty | 5% |
| Franchise Fee | $50,000 |
| Mellow Mushroom Experts Investment Range | $1,330,000 + (Leased Fast Fine) - $1,695,000 + (Traditional Real Estate) |
| No. of Units Currently Open | 161 |
| Royalty | 5% |
| Franchise Fee | $50,000 |
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