About La Bottega Italian Gourmet Franchise
La Bottega Italian Gourmet is a fast casual Italian restaurant franchise that has been offering franchise opportunities since 2011, serving a menu of over 60 panini, fresh salads, and a weekly rotating selection of Italian inspired dishes.
The brand operates in a casual environment with dine in, takeout, and delivery options, offering three restaurant tiers to accommodate different market sizes and investment levels.
With a franchise fee ranging from $20,000 to $35,000, La Bottega Italian Gourmet provides an accessible entry into the Italian restaurant franchise space.
La Bottega Italian Gourmet Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | between $20,000 and $35,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.5% of Gross Sales (Brand Fund Contribution), 1% of Gross Sales (Local Marketing) | National brand fund |
| Total Investment Range | $155,500 – $247,500 | Includes build-out, inventory, working capital |
The investment range of $156K–$248K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (1.5% of Gross Sales (Brand Fund Contribution), 1% of Gross Sales (Local Marketing)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $25,000 |
| Construction / Architect | $25,000 | $50,000 |
| Lease | $7,500 | $9,000 |
| Permits and Legal Fees | $5,000 | $10,000 |
| Operating Equipment | $20,000 | $30,000 |
| Ventilation System | $15,000 | $25,000 |
| POS System | $15,000 | $20,000 |
| Travel and Living Expenses | $2,500 | $5,000 |
| Website Design | $1,500 | $2,500 |
| Music, Alarm, Phone | $5,000 | $8,000 |
| Furniture and Fixtures | $10,000 | $15,000 |
| Signage | $1,500 | $3,500 |
| Printed Materials | $1,000 | $2,500 |
| Initial Insurance Deposit/Premium | $500 | $2,000 |
| Opening Advertising | $3,000 | $5,000 |
| Pre-opening Inventory | $15,000 | $20,000 |
| Additional Funds – 3 months | $8,000 | $15,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Entire Business: $7,500 (or reasonable costs/expenses, whichever higher; reduced to $1,000 under certain conditions). Partial Ownership Interest: $1,000. Death or Permanent Incapacity: $1,000. |
| Renewal Fee | 50% of our then-current initial franchise fee |
| Audit Fee | Full cost of the inspection or audit, including travel, lodging, meals and wages of our representatives and our reasonable professional fees |
| Brand Fund Contribution | 1.5% of Gross Sales |
| Local Marketing | 1% of Gross Sales |
| Regional Cooperative Advertising Fund | Amount determined by us if and when Fund is established |
| Convention Registration Fee | The then-current registration fee, which currently equals $500 (may increase to $2,500) |
| Enforcement Costs | All costs and expenses that we incur, including reasonable professional fees |
| Indemnification | Actual losses and expenses incurred by us and our officers, affiliates, etc. |
| Interest | 1.5% (or the maximum rate permitted by law, if less) per month or portion of a month |
| Market Research and Testing | Proportionate cost of conducting test marketing programs |
| New Product and Supplier Testing | A reasonable fee, not to exceed the actual cost of inspecting and testing the proposed product or evaluating the proposed supplier, including personnel and travel costs |
| On-Premises Additional Training | Our per diem fees and charges that we may establish, plus expenses. Currently, $250 per day |
| Reimbursement of Insurance Costs | Cost of insurance, plus a reasonable fee for our services in obtaining the insurance |
| Relocation | A reasonable fee, plus our reasonable expenses incurred in connection with consideration of the relocation request |
| Repeat Training or Training Additional Personnel | Our then-current training fee, plus expenses. Currently, $5,000 |
| Securities Offering Review Fee | $10,000 or our expenses related to reviewing the proposed offering, whichever is greater |
| Taxes | You must reimburse us for any sales tax, gross receipt tax or similar tax (other than income tax) imposed on us with respect to any payments to us required under the Franchise Agreement |
| Management Fee | 5% of Gross Sales, plus expenses and our representative’s salary |
| Liquidated Damages | Will vary |
| Restaurant Upgrade | Will vary under the circumstances |
| Corrective Action | Will vary under the circumstances |
| Prohibited Product or Service Fine | $250 per day of use of unauthorized products or services |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 22 hours classroom, 94 hours on-the-job |
| Classroom Training | 22 hours |
| On-the-Job Training | 94 hours |
| Training Location | Company Owned La Bottega Italian Gourmet Restaurant in Long Island, New York |
| Additional Training | Franchisor periodically provides additional ongoing training, which may be mandatory. A reasonable fee may be charged for additional training, and franchisees must cover all travel, lodging, meals, and wages for attendees. Franchisor reserves the right to charge a $5,000 training fee if the franchisee or Operating Principal must repeat the Initial Franchise Operations Program (IFOP). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Typically, at least a 1 to 1½ mile radius from the Franchised Location |
| Description | For a single unit franchise, a Designated Territory is assigned, typically a 1 to 1.5 mile radius from the Franchised Location, but can be limited in densely populated or non-traditional areas. For a development agreement, a Development Area is mutually agreed upon, potentially multiple towns or counties, based on the number of restaurants to be developed. The franchisor reserves rights to operate or license others in various captive market locations (gas stations, airports, military bases, etc.) and through other distribution channels (Internet, wholesale, mail order, catalog) within the territory. No minimum sales quotas are required to maintain territorial protection. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | two (2) additional terms of five (5) years each |
| Renewal Fee | 50% of our then-current initial franchise fee |
| Renewal Conditions | Conditions include: providing timely notice; substantial compliance with expiring franchise agreement; not be in default beyond the applicable cure period under any real estate lease, equipment lease, financing instrument relating to the Franchised Restaurant or any agreement with any vendor or supplier to the Franchised Restaurant; secure the right from your landlord to continue operating at the Franchised Location for the full term of the successor franchise agreement; renovate the Franchised Restaurant as we require; sign general release; and complete any additional training that we require; pay successor agreement fee. We may also require you to sign our then-current form of Franchise Agreement, which may contain terms and conditions substantially different from your original Franchise Agreement, including, without limitation, higher royalty fees and/or advertising contributions. |
| Transfer Fee | Entire Business: $7,500 (or reasonable costs/expenses, whichever higher; reduced to $1,000 under certain conditions). Partial Ownership Interest: $1,000. Death or Permanent Incapacity: $1,000. |
| Transfer Conditions | Conditions include: compliance with the Franchise Agreement and any other agreement with us, our affiliates, any lenders that have provided financing pursuant to an arrangement with us and your major suppliers; payment of applicable transfer fee; if applicable, simultaneous transfer of the Development Agreement and any other La Bottega Italian Gourmet Franchise Agreements signed under the Development Agreement; qualified transferee; sign assignment agreement or our then-current standard form of franchise agreement for an initial term ending on the expiration date of the Franchise Agreement and any other agreements we require; upgrade the Franchised Restaurant(s) as we require; sign general release; reasonable sales price; sign personal guarantee; and sign inter-creditor agreements. |
| Termination for Cause | Non-curable defaults include: failure to obtain site approval, or secure a lease for or purchase the site within 120 days after execution of Franchise Agreement; failure to complete required training; failure to open the Franchised Restaurant by the Opening Date; criminal conviction that is likely to harm the System’s reputation; interference with our relations with third parties or our ability to license the System and the Proprietary Marks or any other system or marks to a third party; unauthorized transfer; refuse to permit audit; material misrepresentation; conditions that seriously jeopardize public health or safety; loss of right to operate at the Franchised Location and failure to secure approval of another site within required time period; insolvency; bankruptcy; execution levied against your business or property; foreclosure; material breach of Section 17 (Covenants); and default beyond the applicable cure period under any agreement with us or our affiliates, any real estate lease, equipment lease or financing instrument relating to the Franchised Restaurant or any agreement with any vendor or supplier to the Franchised Restaurant. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, you may not have any interest in a food service business that sells paninis, sandwiches, salads or Italian specialties as primary menu items (at least 20% of sales) or has a similar method of operation/trade dress. You also cannot divert business/customers or employ our/other franchisees' personnel. After termination/expiration, for 2 years, you may not have any interest in a Competitive Business within 10 miles of your former Franchised Location or any other La Bottega Italian Gourmet Restaurant. This also prohibits selling/assigning/leasing any authorized site to a Competitive Business within that 2-year period. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees are not obligated to participate personally in day-to-day operations. However, the restaurant must always be supervised by a trained and certified general manager or assistant manager. At least one ServSafe certified person must be on-site during business hours. If the franchisee is a business entity, an approved Operating Principal (owning at least 33% interest) must be appointed to devote full-time efforts to supervision. If operating five or more restaurants, a franchisor-approved District Manager is required. |
| Required Suppliers | Yes, franchisor has the right to require all food and non-food products, supplies, equipment and services to meet specifications, be purchased from approved suppliers (which may include franchisor or affiliates), and/or be purchased from a single source (which may include franchisor or affiliates or a buying cooperative). |
| Supply Restrictions | Franchisees must use only authorized ingredients and may not sell unapproved products. The franchisor specifies maximum prices for core menu items and reserves the right to change mandatory/optional menu items and ingredients. Franchisor may inspect proposed supplier facilities and test products, charging a reasonable fee for inspection and testing. Approval can be denied or revoked. Franchisor and affiliates may receive fees, rebates, commissions, royalties, or other payments from third-party suppliers based on franchisee purchases. |
| Franchisor Revenue from Suppliers | $0.00 (0%) from rebates collected from suppliers in fiscal year ended December 31, 2021. |
La Bottega Italian Gourmet Franchise Earnings — Item 19
La Bottega Italian Gourmet does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
La Bottega Italian Gourmet Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
La Bottega Italian Gourmet System Growth
La Bottega Italian Gourmet currently operates 3 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 9 |
| 2020 | 0 | 0 | 9 |
| 2021 | 0 | 1 | 8 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by RAICH ENDE MALTER & CO. LLP for year ending December 31st.
La Bottega Italian Gourmet Franchise — FAQ
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