Paciugo Gelato CaffèFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Paciugo Gelato Caffè franchise requires a total initial investment of $110K – $612K, including a $20K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $110K – $612K
- 10th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 22
- 48th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 24 to 22 over 3 years. Investigate why operators are leaving.
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.
- Verdict D (Below Average) with a risk score of 70/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Paciugo Franchise International, LLC
- Ultimate parent
- None
- CEO title
- Manager and Chief Executive Officer
- Jeffrey P. Sinelli
- CEO experience
- 22 yrs
- Years in role or industry
- Incorporated in
- TX
- HQ
- 1215 Viceroy Drive, Dallas, Texas 75247
- Auditor
- DNJ & Associates
- Audited financials
- Franchisor revenue
- $442K
- vs $456K prior year
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
- Headquarters
- TX
- Founded
- 2017
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing · 30 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Caffè) | $15K | $20K | |
| Initial Application and Document Preparation Fee (Caffè) | $250 | $750 | |
| Site Selection Assistance (Caffè) | $0 | $1K | |
| First Month's Rent and Security Deposit (Caffè) | $2K | $10K | |
| Leasehold Improvements (Caffè) | $73K | $306K | |
| Store Design Consulting Services (Caffè) | $0 | $2K | |
| Furniture, Fixtures, Equipment, and Signage (Caffè) | $115K | $198K | |
| Initial Training Costs (Caffè) | $500 | $4K | |
| Pre-Opening Consultation (Caffè) | $0 | $1K | |
| Opening Assistance Costs (Caffè) | $0 | $5K | |
| Computer Hardware and Software (Caffè) | $4K | $8K | |
| Initial Inventory/Supplies (Caffè) | $8K | $10K | |
| Professional Services (Caffè) | $1K | $4K | |
| Opening Advertising Expenses (Caffè) | $4K | $10K | |
| Insurance (Caffè) | $250 | $3K | |
| Additional Funds - three months (Caffè) | $10K | $30K | |
| Initial Franchise Fee (Kiosk) | $15K | $20K | |
| Initial Application and Document Preparation Fee (Kiosk) | $250 | $750 | |
| Site Selection Assistance (Kiosk) | $0 | $1K | |
| First Month's Rent and Security Deposit (Kiosk) | $2K | $10K | |
| Total initial investment | $342K | $907K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $110K – $612K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $8K – $20K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Paciugo Gelato Caffè Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- Opened
- 2
- Last reporting year
- Closed
- 3
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- 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
3-year detail · Item 20
- Transfers (3yr)
- 1
- Projected new
- 5
- Franchisor's next-year forecast
- Transfer rate
- 4.5%
- Owners selling to other franchisees
- Termination rate
- 9.1%
- Franchisor-initiated terminations
- Ceased ops
- 4.5%
- Units that stopped operating
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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Shrinking artisanal gelato system with deteriorating unit count, absent financial disclosures, unprotected territories, and questionable franchisor stability—significant viability and profitability risks.
Litigation (Item 3)
No litigation disclosed in Item 3
Bankruptcy (Item 4)
Disclosed in last 7 years
In re Authentic Gelato, LLC, et al., No. 17-33532; United States Bankruptcy Court for the Northern District of Texas. PFLP filed voluntary Chapter 11 petition on September 19, 2017. Bankruptcy Court granted motion to sell assets on October 31, 2017. Case closed March 22, 2019.
Audited financials (Item 21)
Yes · DNJ & Associates
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 70 / 100 rating
- 01MEDUnit count declined 4.3% year-over-year (22 units is very small system indicating contraction risk)
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI assessment and suggests weak performance or franchisor unwilling to disclose
- 03MINORWide investment range ($109,700–$612,250) indicates inconsistent unit economics or hidden costs
- 04MINORUnprotected territory creates direct competition risk from other franchisees and company-owned locations
- 05HIGHGoing Concern status is FALSE, creating uncertainty about franchisor financial stability and support
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 1 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | AAA offices located in the city where our principal business office is located |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 50 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
26 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Paciugo Gelato Caffè · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Paciugo Gelato Caffè franchise?
The total investment to open a Paciugo Gelato Caffè franchise ranges from $110K – $612K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Paciugo Gelato Caffè franchise owners earn?
Paciugo Gelato Caffè does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Paciugo Gelato Caffè's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Paciugo Gelato Caffè (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Paciugo Gelato Caffè franchise locations are there?
As of their most recent FDD filing, Paciugo Gelato Caffè has 22 total units in the United States, including 24 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Paciugo Gelato Caffè a good franchise to buy?
FranchiseVerdict rates Paciugo Gelato Caffè as a D-grade franchise with a risk score of 70 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). 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.