About Mr. Gatti's Operating Franchise
Mr.
Gatti's Pizza is a family entertainment center (FEC) franchise where franchisees operate large-format restaurants featuring an all-you-care-to-eat pizza, pasta, and salad buffet with menu ordering, appetizers, desserts, and optional beer and wine service, combined with redemption and non-redemption games and amusements.
The suggested format is approximately 12,500 square feet, scalable from 5,500 to 30,000 square feet.
Mr. Gatti's Operating Franchise Cost & Fees
Minimum Investment
$2.1M
Average Investment
$3.0M
Maximum Investment
$3.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (Marketing Development Fund) plus minimum 2% of Gross Sales on Media and Local/Regional Advertising (may increase to 3%) | National brand fund |
| Total Investment Range | $2,143,000 – $3,837,097 | Includes build-out, inventory, working capital |
The investment range of $2.1M–$3.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (2% of Gross Sales (Marketing Development Fund) plus minimum 2% of Gross Sales on Media and Local/Regional Advertising (may increase to 3%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Construction Costs | $1,200,000 | $1,800,000 |
| Furniture, Fixtures, and Equipment Package (excluding IT equipment and games) | $330,000 | $715,000 |
| Interior and Exterior Artifacts and Graphics/Signage | $30,000 | $57,000 |
| Games | $328,000 | $600,000 |
| Architectural Fees | $25,000 | $58,130 |
| Initial Franchise Fee and Construction Oversight Fee | $55,000 | $55,000 |
| Initial Training Cost | $10,000 | $20,000 |
| Initial Advertising and Grand Opening | $30,000 | $30,000 |
| Beginning Inventory (including paper products and plush inventory) | $50,000 | $60,000 |
| Change Fund | $5,000 | $5,000 |
| Pre-Opening Labor | $30,000 | $46,967 |
| Additional Funds - 3 months | $50,000 | $390,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 25% of the initial franchise fee in place at the time of the transfer ($5,000 if for convenience of ownership, among existing owners, or to Immediate Family) |
| Renewal Fee | 25% of the initial franchise fee in place at the time of the renewal |
| Technology Fee | $25 per week per facility (may be adjusted up to $100 per week) |
| Audit Fee | Costs of audit, payable only if audit shows understated royalties of 2% of Gross Sales |
| Media Fund | Currently 0% of Gross Sales; Maximum 2% of Gross Sales |
| Cooperative Advertising | Currently none; Maximum 4% of Gross Sales |
| Non-Compliance Fees | $1,000 to $4,000 per contractual deviation or default |
| Pre-Opening Marketing | $15,000 |
| Grand Opening Marketing | $7,500 |
| One-Year Anniversary Marketing | $7,500 |
| Customer Feedback/Mystery Shopper | Currently none; may be charged in the future |
| Food Safety Audit | Per-visit charge for follow-up visits after High-Risk score |
| Training (additional/successor personnel) | $200 per hour (currently) |
| Additional Pre-Opening/Opening Assistance | $50 per hour (4-hour minimum) plus $200 per diem (after 4th opening or beyond 14 days) |
| Handling and Administration | Cost plus 5% |
| Interest on Late Payments | Lesser of 18% or maximum legal rate |
| Relocation Fee | 25% of initial franchise fee in place at time of relocation |
| Securities Offering Fee | $5,000 plus costs |
| Continuing Game Capital Expenditures | Purchase/lease costs for replacement of lowest 10% of games annually beginning 2 years after opening |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 weeks (200 hours) for Managing Owner/Regional Manager and General Manager; 3 weeks for Assistant Managers; 2 weeks (120 hours) for Game Room Manager/Tech |
| Classroom Training | 14 hours (Managing Owner/GM), 24 hours (Administrative/Restaurant Administration), 30 hours (Game Room Manager/Tech) |
| On-the-Job Training | 186 hours (Managing Owner/GM), 90 hours (Game Room Manager/Tech) |
| Training Location | Mr. Gatti's support center in Fort Worth, Texas or other designated training facility; OJT at designated Mr. Gatti's FEC facilities |
| Additional Training | Online LMS certification required for all management levels before Opening Date. Train the Trainer session provided at no cost. Additional/successor/replacement personnel training available at $50/hour (4-hour minimum) plus $200 per diem. Pre-opening and opening assistance: 2-5 people for 14 days (first opening), scaling down for subsequent openings. 1 week (40 hours) additional training available on tuition basis for managers needing additional time. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Approximately 5-mile radius (3-mile radius in densely populated areas) around the Approved Location, measured by metes and bounds |
| Description | Franchisee receives a Protected Area where franchisor will not establish or allow another franchisee to establish another Mr. Gatti's FEC within the radius. However, the Protected Area does not include protections from Special Facilities (express units, kiosks, mobile units in malls, airports, stadiums, etc.) or other types of Mr. Gatti's Pizza Facilities (such as DELCOs). Franchisor retains rights to sell products through alternative distribution channels, establish other business systems, advertise within the area, and engage in wholesale/retail sales under the Marks. No exclusive territory is granted. In 2024, franchisor granted rights for 92 Special Facilities in Walmart Supercenter locations to a single franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the Actual Opening Date |
| Renewal Term | 1 renewal term of 10 years |
| Renewal Fee | 25% of the initial franchise fee in place at the time of renewal |
| Renewal Conditions | No contractual right to renew; renewal is at franchisor's sole discretion. Conditions include: Good Standing, 6-9 months advance written notice, upgrade FEC to current standards, demonstrate right to remain in possession of premises, sign then-current franchise agreement (terms may materially differ), pay renewal fee, execute general release, comply with then-current qualification and training requirements. |
| Transfer Fee | 25% of the initial franchise fee in place at the time of the transfer ($5,000 for convenience of ownership transfers, among existing owners, or to Immediate Family; no fee for right of first refusal exercises) |
| Transfer Conditions | Must be in Good Standing; execute general release; transferee must meet current qualifications, upgrade FEC, sign then-current franchise agreement, execute guaranty; transferor remains liable for pre-transfer obligations; pay transfer fee. Franchisor has right of first refusal to match third-party offers within 30 days. |
| Termination for Cause | Immediate termination without cure for: insolvency/bankruptcy, failure to obtain site approval or open by required date, failure to construct per plans, abandonment, felony conviction, threat to public health/safety, unauthorized transfer, unauthorized disclosure of confidential information, false records, material misrepresentation, repeated violations (3+ in 12 months), harassment/discrimination. Termination with cure period for: failure to maintain insurance (5 days), misuse of marks (24 hours), failure to pay (10 days), non-competition violation (10 days), failure to comply with system standards (10 days), other defaults (10 days). |
| Non-Compete Period | 2 years after expiration, termination, or transfer |
| Non-Compete Details | During term: no involvement in any Competing Business (food service with pizza/pasta/salad bar or business featuring games) anywhere. Post-term: for 2 years, no involvement in Competing Business within 10-mile radius of the Mr. Gatti's Pizza Facility or within 10-mile radius of any operating or under-development Mr. Gatti's Pizza Facility. Exception for ownership of less than 3% of publicly traded interests. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must designate one owner as Managing Owner who must devote full time and best efforts to supervision of the business (unless a Regional Manager is designated, in which case the Regional Manager must devote full time). A designated FEC Manager must also devote full time to day-to-day operations. Third-party restaurant managers or operators are not permitted without express written authorization. If franchisee is an entity, owners holding 10% or more must personally guarantee obligations under the Franchise Agreement. |
| Required Suppliers | Franchisees must purchase proprietary/branded food products (pizza cheese, sauces, dough pre-mixes, meat toppings, etc.) from approved suppliers only. POS and game/redemption hardware and software must be from designated vendors (Revention, HungerRush, Embed, Amusement Connect, Partywirks, QSR Online). Beverages from designated vendors (Coca-Cola, Dr Pepper for fountain drinks; Community Coffee for coffee/iced tea). Games and rides from approved/designated vendors. Equipment, fixtures, signage, uniforms, and logoed items from approved suppliers. |
| Supply Restrictions | Total initial required purchases and required purchases for operation estimated at 80% to 90% of cost of all initial and annual purchases or leases. Franchisees cannot use unapproved suppliers without written approval. Cannot lease games on shared revenue/coin sharing basis without approved vendor. |
| Franchisor Revenue from Suppliers | $539,462 from sale of products/services to franchisees in fiscal year 2024, representing 4.55% of MGPLLC's 2024 fiscal year revenues of $11,863,766. Franchisor also receives volume discounts, rebates and other cash payments from manufacturers and suppliers based on volume purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation, or has any practice or intent to sell, assign or discount to a third party any financing arrangement. The franchisor does review prospective franchisee financing arrangements with franchisee lenders. |
Mr. Gatti's Operating Franchise Earnings — Item 19
Average Revenue
$2.6M
Median Revenue
$2.6M
Revenue Range
$794K – $5.5M
Sample Size
48 units
Past financial performance does not guarantee future results. Individual results will vary.
Mr. Gatti's Operating Litigation & Risk Flags
Clean Litigation RecordMr. Gatti's Operating has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Mr. Gatti's Operating System Growth
Total Units
53
Franchised
51
Company-Owned
2
Mr. Gatti's Operating currently operates 51 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 3 | 1 | 50 |
| 2023 | 3 | 0 | 53 |
| 2024 | 3 | 3 | 53 |
Transfers: 1 | Closures: 2
State Registrations
Registered in 3 states: IN, MI, WI
Franchisor Financials (Item 21)
Revenue
$12.0M
Net Income
$-1,368,526
Total Assets
$20.7M
Audited by Whitley Penn LLP for year ending Last Sunday of December (December 29, 2024).
Mr. Gatti's Operating Franchise — FAQ
The total investment to open a Mr. Gatti's Operating franchise ranges from $2,143,000 to $3,837,097, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Mr. Gatti's Operating charges a royalty fee of 5% of Gross Sales of gross sales, plus a 2% of Gross Sales (Marketing Development Fund) plus minimum 2% of Gross Sales on Media and Local/Regional Advertising (may increase to 3%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Mr. Gatti's Operating Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Mr. Gatti's Operating to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Mr. Gatti's Operating franchise owners report average revenue of $2.6M and median revenue of $2.6M. This is based on a sample of 48 units. Past performance does not guarantee future results.
Mr. Gatti's Operating has been franchising since 2021. The FDD shows an investment range of $2,143,000-$3,837,097, a 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $2,143,000 to $3,837,097 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Mr. Gatti's Operating and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Mr. Gatti's Operating or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com