About Patsy's Italian Restaurant Franchise
Patsy's Italian Restaurant offers an upscale dining experience specializing in authentic Neapolitan Italian cuisine.
Franchisees operate full-service retail restaurants, providing eat-in dining, catering services, and private parties.
The menu features proprietary recipes for food, soft drinks, and alcoholic beverages, alongside a selection of non-proprietary items.
Patsy's Italian Restaurant Franchise Cost & Fees
Minimum Investment
$2.7M
Average Investment
$3.4M
Maximum Investment
$4.0M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $100,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales | National brand fund |
| Total Investment Range | $2,723,500 – $4,011,000 | Includes build-out, inventory, working capital |
The investment range of $2.7M–$4.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Sales) and marketing fee (Up to 2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $100,000 | $100,000 |
| Leasehold Improvements | $1,100,000 | $1,650,000 |
| Fixtures, Furnishings, Equipment & Signage | $925,000 | $1,210,000 |
| Architect Fees | $30,000 | $70,000 |
| Business Licenses & Permits | $3,500 | $6,000 |
| Rent and Utility Deposits | $25,000 | $60,000 |
| Other Professional Fees | $10,000 | $30,000 |
| Insurance | $50,000 | $100,000 |
| Initial Inventory of Products and Food and Paper Supplies | $150,000 | $225,000 |
| Training Expenses | $30,000 | $60,000 |
| Grand Opening Advertising | $50,000 | $50,000 |
| Additional Funds (for initial period of operations) | $250,000 | $450,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $25,000 (Franchise Agreement); $10,000 per undeveloped restaurant or 50% of Area Development Fee, whichever is higher (Area Development Agreement) |
| Renewal Fee | $10,000 |
| Technology Fee | None |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs (if understatement of 2% or more found) |
| Cooperative Ad Fund Contribution | 0.5% of Gross Sales |
| Local Telephone and On-line Directories | Varies |
| Additional On-site Training and Assistance | $1,000 per day per trainer plus out-of-pocket costs |
| Product/Supplier Testing | Varies - costs of testing and evaluation |
| Mystery Customer Quality Control | Up to $500 per year |
| Late Fee and Interest on Overdue Payments | 5% late fee plus 1.5% monthly interest |
| Insurance Procurement | Franchisor's cost if franchisee fails to obtain |
| Prohibited Product Fine | $250 per day |
| Liquidated Damages | Average monthly royalties x lesser of 24 months or remaining term |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 6 weeks |
| Classroom Training | 50-70 hours |
| On-the-Job Training | 80-150 hours |
| Training Location | New York, New York and at franchisee's restaurant |
| Additional Training | Pre-opening training of 20-30 hours on-the-job at franchisee location. 7-12 days of on-site opening assistance. Refresher courses up to 4 days per year at headquarters and 3 days per year for franchise convention. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected with reservations |
| Exclusive Territory | No |
| Territory Size | 10 city blocks radius in urban area or 10-mile radius in suburban/rural area |
| Description | Franchisor will not establish or license another Patsy's Italian Restaurant within the Territory during the franchise term. However, franchisor and affiliates retain rights to operate outside the Territory, operate non-restaurant businesses under the marks within the Territory, operate under different marks within the Territory, operate at Non-Traditional Sites within the Territory, and sell products through alternative distribution channels. Franchisee does not receive an exclusive territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $10,000 |
| Renewal Conditions | Notice, satisfaction of monetary obligations, compliance with Franchise Agreement, mutual release, sign new Franchise Agreement, and others per Sections 2.2.1-2.2.9. May be asked to sign materially different terms but territory boundaries and fees remain the same. |
| Transfer Fee | $25,000 |
| Transfer Conditions | Release, signature of new Franchise Agreement, payment of transfer fee, and others per Sections 15.3.1-15.3.11 and 15.4. Franchisor has right of first refusal to match any offer. |
| Termination for Cause | Default under Franchise Agreement, bankruptcy, abandonment, and other grounds per Section 16. Incurable defaults include bankruptcy, abandonment, conviction of felony per Sections 16.1 and 16.2. |
| Non-Compete Period | 2 years |
| Non-Compete Details | Two-year prohibition after termination or expiration on engaging in any other business offering predominantly Italian food products in an upscale environment, within the Territory or within 30 miles of any Patsy's Italian Restaurant then-operating under the System anywhere. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Under the Franchise Agreement, the franchisor recommends but does not require that the franchisee or Designated Principal be involved in general oversight and management. The Designated Principal is expected to act as general manager. Under the Area Development Agreement, the franchisee or Designated Principal must be involved in general oversight and development. |
| Required Suppliers | Proprietary Products (sauces, oils, vinegar, pasta) from Mac Specialty Foods LLC; coffee from affiliate PIR; cookbooks from affiliate Scognamillo Enterprises. All other Products must be from approved suppliers meeting franchisor standards. |
| Supply Restrictions | All Products must meet franchisor standards and specifications. Must purchase from approved manufacturers, distributors, and suppliers only. Franchisor may designate single suppliers including itself or affiliates. Unapproved suppliers require written approval within 45 days. |
| Franchisor Revenue from Suppliers | During fiscal year 2022, neither franchisor nor affiliates received any revenue or other material consideration from required purchases or leases by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing, nor do we guaranty your notes, leases or other obligations, but we may decide to offer indirect financing in the future. |
Patsy's Italian Restaurant Franchise Earnings — Item 19
Patsy's Italian Restaurant does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Patsy's Italian Restaurant 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.
Patsy's Italian Restaurant Litigation & Risk Flags
Clean Litigation RecordPatsy's Italian Restaurant has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Patsy's Italian Restaurant System Growth
Total Units
1
Franchised
0
Company-Owned
1
Patsy's Italian Restaurant currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 2 states: CT, NY
Patsy's Italian Restaurant Franchise — FAQ
The total investment to open a Patsy's Italian Restaurant franchise ranges from $2,723,500 to $4,011,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $100,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Patsy's Italian Restaurant charges a royalty fee of 7% of Gross Sales of gross sales, plus a Up to 2% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Patsy's Italian Restaurant 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 Patsy's Italian Restaurant to ensure you have the most up-to-date version.
Patsy's Italian Restaurant does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Patsy's Italian Restaurant has been franchising since 2007. The FDD shows an investment range of $2,723,500-$4,011,000, a 7% of Gross Sales royalty, and no 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 $100,000 and the total investment ranges from $2,723,500 to $4,011,000 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 Patsy's Italian Restaurant and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Patsy's Italian Restaurant or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com