Paciugo Gelato Caffè Franchise Cost, Revenue & Review 2026
- Investment
- $233K – $612K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (9)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Paciugo Gelato Caffe is a dessert franchise serving artisan Italian gelato, sorbet, and espresso drinks. Franchisees run the cafes, managing gelato prep, inventory, and counter service.
FranchiseVerdict summary · 2026
A Paciugo Gelato Caffè franchise requires a total initial investment of $233K – $612K, including a $20K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: 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 scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $233K – $612K
- 32nd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 22
- 50th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $233K – $612K including a $20K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 58/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (2 opened, 1 closed); 2 signed but not yet open (Item 20).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Paciugo Franchise International, LLC
- Predecessor
- Paciugo Franchising, LP
- Prior franchisor entity
- 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
- $456K
- Most recent fiscal year
Overview
About
- CEO
- Jeffrey P. Sinelli
- Headquarters
- TX
- Founded
- 2017
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 13% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 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 | |
| Total initial investment | $233K | $612K |
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
- $233K – $612K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $30K
- Top 40% of category vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- 6.0%
- 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 |
| Renewal fee | $10K |
| Inventory (initial) | $8K – $10K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Paciugo Gelato Caffè makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Paciugo Gelato Caffè unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -8.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Paciugo Gelato Caffè Compares
Category median of published Quick-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.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- Opened
- 2
- Last reporting year
- Closed
- 1
- 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 (3-yr)
- -8.3%
- Net unit change over 3 years
- 3-yr CAGR
- -8.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 1
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 0.09 per open outlet · Item 20 Table 5
- 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.
Where the owners are · Item 20 owner list
26 current owners across 8 states.
- TX 18
- IL 2
- CO 1
- FL 1
- MA 1
- MI 1
- OK 1
- VA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- $2.1M
- Median loan
- $237K
- average
- Charge-off rate
- Under 10 loans (9)
- Insufficient SBA coverage: 9 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (9)
- 5-yr charge-off
- Under 10 loans (9)
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed in Item 3
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
Predecessor Paciugo Franchising LP filed Chapter 11 bankruptcy September 19, 2017 (In re Authentic Gelato, LLC, et al., No. 17-33532, N.D. Tex.). Assets acquired by current franchisor 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)
Total revenues of $455,959 comprise franchise fee revenue $28,896, royalties $281,479, marketing revenue $133,264, and other revenues $12,320 (audited, year ended December 31, 2024).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- 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 58 / 100 verdict
- 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
- 03MINORUnprotected territory creates direct competition risk from other franchisees and company-owned locations
- 04MEDRelatively high 6% royalty on undisclosed revenue base makes profitability math impossible to validate
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | No territory protection |
| 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 | Dallas, Texas |
| Jury trial waiver | No |
| Governing law | TX |
| 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
- Dallas, Texas (or virtual)
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
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
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 $233K – $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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Paciugo Gelato Caffè?
Paciugo Gelato Caffè is franchised by Paciugo Franchise International, LLC. The FDD names no parent company. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Paciugo Gelato Caffè 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 Paciugo Gelato Caffè FDD and qualifies whose outlets they describe.
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 22 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 B-grade franchise with a verdict score of 58 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.