Mr. Gatti's Franchise Cost & 2026 FDD Data
40/100
Middle tier
40 this brand53 Full-Service Restaurants medianlikely 36–44: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#2,393 of 3,068 graded brands
Why a C: Helped by unit growth, legal record and transparency. Held back by financial health. See all six factors
- Total investment
- $195K – $604K
- excl. site work and real estate
- Avg gross sales
- $716K
- “Total (18 facilities)”, 18 outlets; not profit
- SBA charge-off
- 34.8%
35% SBA 7(a) loans to Mr. Gatti's owners charged off (8 of 23 resolved loans, approved FY1994 to FY1997); Full-Service Restaurants median 14.5%.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Mr. Gatti's franchise requires a total initial investment of $195K – $604K, excluding site work and real estate, including a $50K franchise fee. Once open, the ongoing royalty is 5.0%. Per the 2026 FDD, average gross sales were $716K (Item 19 group “Total (18 facilities)”, 18 outlets; gross sales, not profit). SBA 7(a) loans show a 34.8% charge-off rate on 23 resolved loans. Verdict grade: C (Middle tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Full-Service Restaurants median
Top edge: green = better than the Full-Service Restaurants median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $716K/year (outlet median $739K; Item 19 group “Total (18 facilities)”, 18 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 10 (0 opened, 0 closed; other Item 20 movements account for the remaining 10).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
AT STAKEOne unit at the Item 7 midpoint: $52K a year in payments on assumed SBA 7(a)-style terms.You put in about $80K of your own cash and personally guarantee a $320K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (2)
- SBA 7(a) charge-off 34.8% on 23 resolved loans approved FY1994 to FY1997, above the Full-Service Restaurants median of 14.5% (30 brands).
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no pending lawsuit naming the franchisor, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 18 units. Not on file here, so ask: jury-trial waiver and supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 62% below the Full-Service Restaurants median ($1.1M).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Mr. Gatti's Operating, LLC (Item 1: 550 Bailey Ave., Suite 650, Fort Worth, Texas 76107) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Construction Costs | $50K | $356K | |
| Furniture, Fixtures, and Equipment Package | $55.4K | $111.2K | |
| Interior and Exterior Artifacts and Graphics/Signage | $9.8K | $16K | |
| Architectural Fees | $2K | $20K | |
| Initial Franchise Fee and Construction Oversight Fee | $30K | $30K | |
| Initial Training Cost | $5K | $10K | |
| Initial Advertising and Grand Opening | $15K | $15K | |
| Beginning Inventory (including paper products) | $14.1K | $15K | |
| Change Fund | $1.4K | $1.4K | |
| Pre-Opening Labor | $2K | $9.6K | |
| Additional Funds 3 months | $10.3K | $20K | |
| Total initial investment | $195K | $604K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7; the lines above add to $195,087 to $604,178, $1 at most from the printed total, which is the figure shown. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology feeTechnology Fee currently $25 per calendar week per Mr. Gatti's Pizza Facility; may be adjusted up to $100 per week per Facility | $25/week |
| Total fee loadnear the Full-Service Restaurants median of 6.4% | 7.0% of sales |
What do units actually make?
Average gross sales are 62% below the Full-Service Restaurants median ($1.9M).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Mr. Gatti's unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $716K (FDD p.56), and the royalty and ad fund take about $50K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $52K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $400K Item 7 midpoint is a $320K loan, paid over 10 years at 10.5%: $52K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Mr. Gatti's' past SBA 7(a) loans averaged 6.0% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $80K Assumption (the part the loan does not cover of the $400K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $320K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Mr. Gatti's unit leave you each year after the loan payment?
Item 19: $716,039 average for 18 outlets (Total (18 facilities)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $195K to $604K
Item 7's $10K to $20K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $320K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by Mr. Gatti's Operating, LLC
Financial performance
- Range (low → high)
- $173K→$1.3MSource: 2026 FDD, page 56
- Cohort dispersion (min → max)
- Top and bottom 25%
- $297K→$1.1M
- Bottom group → top group: the top and bottom 25% as the filing reports them
Percentile ranks within Full-Service Restaurants
Each rank is among the Full-Service Restaurants brands that report that figure (the count is under each bar).
vs Full-Service Restaurants medians
How Mr. Gatti's compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Mr. Gatti's Operating, LLC, owned by Mr. Gatti's Pizza, LLC.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Mr. Gatti's Operating, LLC
- Parent company
- Mr. Gatti's Pizza, LLC
- FDD Item 1, page 6 of the 2026 FDD
- Predecessor
- Mr. Gatti's Pizza, LLC (MGPLLC); Mr. Gatti's, LP (MGLP)
- Prior franchisor entity
- CEO title
- Manager, President and Chief Executive Officer
- R.J. Phillips, Jr.
- Incorporated in
- Delaware
- HQ
- 550 Bailey Ave., Suite 650, Fort Worth, Texas 76107
- Franchisor revenue
- $10.5M
- latest fiscal year in the 2026 FDD
Same owner · FDD Item 1, page 6
1 other brand on this site names Mr. Gatti's Pizza, LLC as parent or ultimate parent in its own FDD.
- Mr. Gatti’s FEC (grade B)
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
Mr. Gatti's Delivery and Carry-out Pizza Facility (DELCO), a +/- 1,200 sq ft format offering pizza, pasta, wings and salad for online, phone or in-store ordering, delivered or carried out, with some formats offering limited dine-in seating.
- CEO
- R.J. Phillips, Jr.
- States and territories listed
- 1
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
+21 franchised outlets over the two years to 2025 (76 to 97, +27.6% in total, +13.0% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 48
- 0.49 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
The filing is the Mr. Gatti's DELCO disclosure document, but its Item 20 Table No. 5 totals all facility types rather than the DELCO offering alone. No projected openings figure is shown rather than attributing the all-types total to this offering.
Item 20 · franchised units at year end
Franchised units rose from 76 in 2023 to 97 in 2025
Axis does not start at zero.
Source and method
Reacquisitions and outlets moved to or from company ownership also change the count, so opened minus closed differs from the change.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
Government records
SBA loan data
Lenders charged off 34.8% of 23 resolved SBA 7(a) loans, above the 14.5% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 23
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $8.0M
- Average loan
- $346K
- loan volume divided by loans
- Charge-off rate
- 34.8%
- 8 of 23 resolved loans
- Paid in full
- 65.2%
- of resolved loans
- Recent-loan charge-off
- No recent loans
- no SBA 7(a) loan approved since FY2011
- Lenders
- 16
- Average interest rate
- 6.0%
- Jobs reported
- 179
- on the 7 loans approved FY2002 on; earlier loans did not record jobs
- Lender concentration
- 22%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Full-Service Restaurants brand charges off 14.5% (30 brands with a published rate, same cumulative window and source). This brand is 20.3 points above it.
The approval-year breakdown covers 9 of the 23 resolved loans and 4 of the 8 charge-offs (FY1994 to FY1997).
SBA 7(a) · charge-off rate by approval year
Mr. Gatti's charge-off rate by loan approval year
None of these 3 approval years has 10 or more resolved loans, too few to draw a trend. Each year’s numbers are in the table below.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 1994 | 3 | 2 | Too few |
| 1996 | 3 | 2 | Too few |
| 1997 | 3 | 0 | Too few |
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Mr. Gatti's from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 76%
- Average interest rate
- 6.0%
- Lender concentration
- 22%
- Jobs reported
- 179
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| Prosperity Bank | ||
| 5 | $725K | Not on file |
| Wells Fargo Bank National Association | ||
| 2 | $265K | Not on file |
| Comerica Bank | ||
| 2 | $895K | Not on file |
| JPMorgan Chase Bank, National Association | ||
| 2 | $815K | Not on file |
| U.S. Bank, National Association | ||
| 1 | $270K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| TX Texas | 16 | 5 | 31.2%16 resolved |
| KY Kentucky | 2 | 1 | Too few2 resolved |
| AR Arkansas | 1 | 1 | Too few1 resolved |
| IN Indiana | 1 | 0 | Too few1 resolved |
| LA Louisiana | 1 | 0 | Too few1 resolved |
| MO Missouri | 1 | 1 | Too few1 resolved |
| TN Tennessee | 1 | 0 | Too few1 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
A 34.8% charge-off rate means about 1 in 3 resolved SBA 7(a) loans to this brand was charged off. The approval-year chart above shows which years they came from.
What are the risks?
Main risk in the grade: financial health. The reasons are below.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade C: Middle tier, 40/100 (category median 53); the full grade is at the top of the page.
How the grade is built
Why a C, factor by factor
- Financial health Weighs on it, weakest dimensionAudited financials; no going-concern doubt; franchisor reported a net loss; negative net worth
- Unit economics NeutralAvg gross sales $716K on a $400K investment midpoint, 1.8x (gross sales, not profit)
- Unit growth Helps+21 franchised outlets over the two years to 2025 (76 to 97, +27.6% in total, +13.0% a year compounded); turnover 0.0%
- Scale Neutral97 franchised units, +1 company-owned (98 in all); franchising since 2021
- Legal HelpsNo litigation naming the franchisor in Item 3; a bankruptcy disclosed in Item 4 (an officer's)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-26 points)SBA loan record: the SBA charge-off rate (34.8% on 23 resolved loans approved FY1994 to FY1997) is between 20% and 50%, a range the score counts against a brand, so it took 15 points off. The score uses fixed ranges, not the category median, so a rate below its category median can still cost points.Score limits: a ceiling the method sets for specific risks (such as a very high SBA charge-off rate, high turnover or an auditor's going-concern doubt) took 11 points off.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One settled action (2019) by a franchisee against predecessor Gatti's Great Pizza, Inc. and its owners (Phillips, Mann) alleging breach of contract related to purchase of 13 former company-affiliated facilities; settled for $200,000 in rent subsidies without admission of liability. No pending or concluded matters against the franchisor directly, and no litigation against franchisees in the last fiscal year.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Predecessor MGLP and affiliates (Sovrano LLC, Gatti's Great Pizza, Inc., Gigi's Cupcakes entities, KeyCorp LLC) filed Chapter 11 on January 4, 2019 in N.D. Texas; plan confirmed October 17, 2019, effective November 19, 2019; individual cases closed September 30, 2021. Two related affiliates (Allorco LLC, GGP Mississippi LLC) filed Chapter 7 in 2019, both discharged same year. Current managers Phillips and Mann were officers/managers of the debtor entities.
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Restricted to system-approved products: Yes
Litigation case detail1 matter · Item 3
Litigation cases
Parent, affiliates, master franchisor and subfranchisor
Concluded (1)
Three Dough Boys, LLC, Jeff Tisdel and Kenny Starks v. Gatti’s Great Pizza, Inc., R.J. Phillips and Kyle C. Mann
settledBrought by a franchisee · Gatti’s Great Pizza, Inc. (an affiliate of predecessor MGLP); R.J. Phillips and Kyle C. Mann (Item 2) · filed 2019-07-19 · U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division (adversary proceeding in In re Sovrano et al.) · Adv. 19-04070-elm; 19-40067-elm11
“… Adversary Proceeding #19-04070-elm (filed in In re Sovrano et.al., United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division, Case Number 19-40067-elm11).”Page 11 of the 2026 FDD, Item 3
Outcome: “on September 5, 2019, the parties reached a settlement without admission of liability whereby the franchisee would receive a total of $200,000 in rent subsidies for the purchased Facilities payable over 10 months beginning in October 2019 (an amount significantly less than projected litigation”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Territory radius | 2 mi |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 10 mi |
| Right of first refusal | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaults | 6 |
| Mandatory arbitration | No |
| Arbitration location | Tarrant County, Texas (non-binding mediation before litigation) |
| Governing law | Texas |
Items 5 (initial fees), 7 (startup costs), 12 (territory) and 20 (outlet counts) · development agreement
Area development (several units)
The filing offers a development agreement for several units. If you miss the schedule, the development agreement can be ended.
Every term, with its page
- If you miss the schedule
- The development agreement can be ended.
2026 FDD p.50
“felony conviction or other crime or offense affecting Marks, misconduct, failure to meet development obligations, including site selection and site acquisition obligations; unauthorized transfer; unauthorized use of Marks; failure to comply with covenants; termination of any Franchise Agreement.” - Signed, not yet open
- 48 franchises sold but not open at year end (Item 20, Table 5; see Growth). Ask how long they have been waiting and why.
Each unit still needs its own Item 7 investment on top of the development fee. Have a franchise attorney read the schedule and the default terms before you sign.
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 14 hrs
- On-the-job training
- 186 hrs
- Training location
- Mr. Gatti's support center in Fort Worth, Texas or other designated facility
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisor reviews proposed sites; provides site selection guidelines
- Franchisor financing
- Not offered
- Item 10
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Mr. Gatti's franchise?
Per the 2026 FDD, the total investment to open a Mr. Gatti's franchise ranges from $195K to $604K, with an initial franchise fee of $50K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include site work and real estate.
What do Mr. Gatti's franchise owners earn?
According to Item 19 of the Mr. Gatti's FDD, average gross sales were $716K (Item 19 group “Total (18 facilities)”, 18 outlets; gross sales, not profit). The median is $739K. What an owner keeps depends on location, operating costs and management.
Who owns Mr. Gatti's?
Mr. Gatti's is franchised by Mr. Gatti's Operating, LLC. Its parent company is Mr. Gatti's Pizza, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Mr. Gatti's FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Mr. Gatti's FDD and qualifies whose outlets they describe.
What is Mr. Gatti's' franchise failure rate?
There is no published franchise failure rate. What is measurable is Mr. Gatti's' SBA charge-off rate: 34.8% on 23 resolved loans approved FY1994 to FY1997. Put plainly: 35% SBA 7(a) loans to Mr. Gatti's owners charged off (8 of 23 resolved loans, approved FY1994 to FY1997). The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Mr. Gatti's franchise locations are there?
Per the 2026 FDD, Mr. Gatti's has 97 franchised units and 1 company-owned (98 in all). In the latest year, the number of franchised outlets grew by 10 (0 opened, 0 closed; other Item 20 movements account for the remaining 10).
Is Mr. Gatti's a good franchise to buy?
FranchiseVerdict gives Mr. Gatti's a C Verdict grade (Middle tier) with a verdict score of 40 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit growth (+21 franchised outlets over the two years to 2025: 76 to 97, +27.6% in total, +13.0% a year compounded), legal record and transparency. Held back by financial health (audited financials). The “Why a C” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Full-Service Restaurants franchises
Similar investment first, then by grade
This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.