FranchiseVerdict
Paciugo Gelato Caffè logo
FV-01863·MODERATEStandard76

Paciugo Gelato Caffè

Food & Beverage - Ice Cream & DessertsFranchising since 2017Website
Investment
$110K – $612K
8th pct Ice Cream & D…
Avg revenue
59th pct Ice Cream & D…
Royalty
6.0%
27th pct Ice Cream & D…
Units
22
49th pct Ice Cream & D…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $110K – $612K including a $20K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 9 loans (below the industry average).
  • System contracting at -8.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Paciugo Franchise International, LLC
Incorporated in
Texas
HQ
1215 Viceroy Drive, Dallas, Texas 75247
Auditor
DNJ & Associates
Audited financials
Franchisor revenue
$442K
vs $456K prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Paciugo Gelato Caffè unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $110K–$612K
Working capital
$
FDD reports $10K–$30K

Unlevered ROIC · per unit

20%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$75K
EBITDA margin
10.0%
Total invested
$381K
Payback
61 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Paciugo franchisees operate upscale gelato and specialty coffee retail locations, focusing on premium Italian-style frozen desserts and espresso beverages. Daily operations include product preparation, staff management, customer service, and inventory control in small-format locations. The model emphasizes brand positioning as a high-end alternative to frozen yogurt chains.

CEO
Jeffrey P. Sinelli
Founded
2017
FDD year
2025
States available
5

Item 7 · what it costs

The Vitals

Total investment
$110K – $612K
All-in to open one unit
Liquid capital
$10K – $30K
Cash you must have on hand
Franchise fee
$20K
Royalty
6.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
22
Opened
2
Last reporting year
Closed
3
Turnover rate
13.6%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
-4.3%
Net unit change last year
3-yr CAGR
-8.3%
Compounded over last 3 years
2023
22-1
Franchised units
2024
23
Franchised units
2025
24
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 8 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 8 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
9
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

64
Risk · 0-100
MODERATE64 / 100

Shrinking artisanal gelato system with deteriorating unit count, absent financial disclosures, unprotected territories, and questionable franchisor stability—significant viability and profitability risks.

Score breakdown · what drove the 64 / 100 rating

  1. 01MEDUnit count declined 4.3% year-over-year (22 units is very small system indicating contraction risk)
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI assessment and suggests weak performance or franchisor unwilling to disclose
  3. 03MINORWide investment range ($109,700–$612,250) indicates inconsistent unit economics or hidden costs
  4. 04MINORUnprotected territory creates direct competition risk from other franchisees and company-owned locations
  5. 05HIGHGoing Concern status is FALSE, creating uncertainty about franchisor financial stability and support
  6. 06MEDRelatively high 6% royalty on undisclosed revenue base makes profitability math impossible to validate

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Protected territory
No
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
18 hrs
On-the-job training
50 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

26 numbers

Locked
(469) 441-••••
TX
(972) 292-••••
TX
(281) 743-••••
TX

One-time purchase · CSV download · Validation questions included

FDD download

Paciugo Gelato Caffè · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above