Mountain Mike’s Pizza Franchise Costs, Fees & FDD

Year Business Began: 1978

Franchising Since: 1981

Headquarters: Irvine, California

Estimated Number of Units: 305

Franchise Description: The franchisor is Mountain Mike’s Pizza, LLC. Mountain Mike’s Pizza restaurants feature pizza, sandwiches, salads, and other food products and services. Franchisees will offer most of their food products and services at the restaurant itself, although they may provide catering and certain delivery services away from the restaurant’s premises if the franchisor approves the franchisee to offer catering and delivery services.
Training Overview: The franchisor (and/or a development agent) will provide initial training on operating a restaurant to franchisees (or their managing owner) and one managerial employee. Franchisees will receive a maximum of five weeks of training, all of which currently occur via online courses, video calls, at the Mountain Mike’s Franchise Support Center in California, at an operating Mountain Mike’s Pizza restaurant in California or at a location that the franchisor designates. All restaurant management personnel will receive up to 10 days (at the franchisor’s discretion) of additional training at the opening restaurant. Franchisees (or their managing owner) and/or previously trained and experienced managers must attend any periodic refresher training courses the franchisor provides and pay the applicable fees. Depending on the subject matter, these courses could last up to 10 days.

Territory Granted: Franchisees will operate the restaurant at a specific location the franchisor first must accept. Once the location is located and accepted by the franchisor, the franchisor will identify the protected area. The franchisor will not establish or allow a franchisee to establish another Mountain Mike’s Pizza restaurant with its physical location within the protected area. The protected area’s size typically will be a 1.5 mile radius from the restaurant. While no other Mountain Mike’s Pizza restaurant will be physically located within the restaurant’s protected area, the protected area may overlap with another franchisee’s protected area (in other words, area in one franchisee’s protected area also may be in another franchisee’s protected area).

Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their contractual obligations, continuously exert their best efforts to promote and enhance the restaurant, and not engage in any other activity conflicting with their obligations to operate the restaurant properly. Although the franchisor recommends it, franchisees (or their managing owner) need not participate personally in the restaurant’s on-site operation. In that case, however, franchisees must employ a manager to manage the restaurant’s day to day operations on-site. The manager must complete initial training to the franchisor’s satisfaction. Franchisees must offer all products and perform all services the franchisor periodically requires for Mountain Mike’s Pizza restaurants. Franchisees may not offer any products or perform any services the franchisor has not authorized.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If franchisees are in good standing, they may acquire a successor franchise for 10 years on the franchisor’s then current terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation. The franchisor offers a $15,000 reduction off of the $30,000 initial franchise fee for qualified veterans of the U.S. Armed Forces for each restaurant purchased.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$7,500	$30,000
Leasehold Improvements	$150,000	$585,442
Architectural and Engineering Fees	$20,000	$26,000
Furniture, Fixtures, and Equipment	$171,000	$255,000
Signage	$10,500	$24,000
POS/ Electronic Information System	$12,000	$15,000
Three Months’ Rent	$16,000	$36,000
Opening Inventory, Uniforms, and Supplies	$24,000	$30,000
Marketing Fee	$8,000	$8,000
Décor Package	$8,500	$10,500
Training Expenses (for one required attendee)	$2,500	$5,000
Professional Fees	$1,500	$5,500
Miscellaneous Opening Costs	$24,000	$35,000
Additional Funds – 3 months	$21,000	$25,000
ESTIMATED TOTAL (excluding real estate purchase costs)	$476,500	$982,611

 
Other Fees

Type of Fee	Amount
Royalty	5% of restaurant’s weekly gross sales.
Marketing Fund	Up to 1% of restaurant’s weekly gross sales.
Advertising Cooperatives	Up to 2% of restaurant’s weekly gross sales (but franchisees may agree to pay more).
Additional Training or Assistance	$200 - $1,200
Transfer (Controlling Transfers)	$30,000 if a transfer to a new Mountain Mike’s Pizza restaurant franchisee and $15,000 if a transfer to an existing Mountain Mike’s Pizza restaurant franchisee.
Transfer (Non-Controlling Transfers)	$2,500
Marketing	$8,000
Renewal	50% of the franchisor’s then current initial franchise fee.
Audit	$500 - $5,000, though actual amount could be much higher because it depends on extent of the franchisee’s non-compliance and the franchisor’s efforts required to detect that non-compliance.
Interest	Lesser of 1.5% per month or highest contract interest rate law allows.
Service Charge	$100
Product and Service Purchases	Varies.
Management Fee	Up to 15% of restaurant’s gross sales.
Costs and Attorneys’ Fees	Will vary under circumstances and depends on the franchisee’s non-compliance.
Indemnification	Will vary under circumstances and depends on nature of underlying claim.
Testing	$50 - $800
Franchise System Website and Intranet	Not to exceed $50 per month.
Online Training Program and Learning Management System (LMS) Fee	$300 annually, subject to increase.
Technology Fees	Currently, between $109 and $139 per month, subject to increase.
Insurance	Will vary under circumstances and depends on which insurance the franchisee did not obtain.
Non-Compliance Fee	$500 to $2,000 for deviations from operational requirements/system standards.
Re-Inspection Fee	Currently, $250.
Customer Complaint Reimbursement	Out-of-pocket cost reimbursement.
Lost Future Royalties	Depends on how much time remained in Franchise Agreement term when the franchisor terminated with cause or the franchisee terminated without cause.

The above information has been compiled from the FDD of Mountain Mike’s Pizza. Year of FDD: 2025.
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