Pappalecco Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Pappalecco is an Italian cafe franchise serving gelato, coffee, panini, and Italian fare. Franchisees run the cafes, managing food and gelato prep, staffing, and service.
FranchiseVerdict summary · 2026
A Pappalecco franchise requires a total initial investment of $343K – $637K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $343K – $637K
- 57th pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only2 outlets
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 2
- 9th 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 avg · 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 $343K – $637K including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSAll operating revenue is franchise fee income recognized over time; 2024 total revenue $24,750 (deferred revenue current portion $24,750 at year end). Going concern doubt noted by auditors for one year after April 13, 2025.
- RISKVerdict D (Below average), verdict score 36/100 (higher is better).
- DATAItem 19 reports company owned historical rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Pappalecco Franchising, LLC
- Parent company
- Gelaterie Bucci Inc.
- CEO title
- Chief Executive Officer
- Francesco Bucci
- Incorporated in
- CA
- HQ
- 3402 Kurtz Street, San Diego, California 92110
- Auditor
- DA Advisory Group PLLC
- Audited financials
- Franchisor revenue
- $25K
- vs $50K prior year
Overview
About
- CEO
- Francesco Bucci
- Headquarters
- CA
- Founded
- 2022
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 26% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Training Expensesnot refundable | $3K | $7K | |
| Rent and Deposit (3 months)not refundable | $12K | $25K | |
| Leasehold Improvementsnot refundable | $40K | $200K | |
| Furniture, Fixtures, Equipment & Smallwarenot refundable | $120K | $140K | |
| Signagenot refundable | $7K | $14K | |
| Business Management Systemnot refundable | $3K | $6K | |
| Licenses and Permitsnot refundable | $2K | $2K | |
| Legal and Accountingnot refundable | $4K | $12K | |
| Utility Depositsnot refundable | $500 | $1K | |
| Insurancenot refundable | $2K | $3K | |
| Initial Inventorynot refundable | $50K | $95K | |
| Grand Opening Marketing Expenditurenot refundable | $2K | $3K | |
| Additional Funds (3 months)not refundable | $50K | $80K | |
| Total initial investment | $343K | $637K |
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
- $343K – $637K
- Middle of category vs category
- Liquid capital req'd
- $50K – $80K
- Bottom third — review vs category
- Franchise fee
- $50K – $50K
- Bottom third — review vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $50 |
| Training fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $50K – $95K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Pappalecco did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Pappalecco unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
20%
Below the 30–60% attractive-franchise band
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
All operating revenue is franchise fee income recognized over time; 2024 total revenue $24,750 (deferred revenue current portion $24,750 at year end). Going concern doubt noted by auditors for one year after April 13, 2025.
Company-owned outlets only - not franchisee performance
Based on only 2 outlets
- Item 19 type
- company owned historical
- Sample size
- 2 outlets
- vs category median 20 · small
- Range (low → high)
- $1.1M→$1.2M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
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 7.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports company owned historical rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How Pappalecco Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
- Ceased ops
- 50.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Pappalecco presents caution-level risk: a micro-franchise system with only 2 units, unverified financial claims, and insufficient franchisor revenue to support meaningful franchisee support.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DA Advisory Group PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 36 / 100 verdict
- 01MINOROnly 2 operating units represents an extremely small, unproven franchise system with no demonstrated growth trajectory
- 02MINORHigh initial investment ($343K-$636.5K) relative to system size creates significant risk if franchisee underperforms or system contracts
- 03MEDAbsence of disclosed litigation is notable but not reassuring given the minimal unit count and short operating history
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% 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 | 10 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | California |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 55 hrs
- On-the-job training
- 63 hrs
- Training location
- Corporate headquarters in San Diego, CA or other designated location / online
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Business Management System (2 POS terminals, receipt printers, desktop computer, office printer/scanner, modem)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Business Management System (2 POS terminals, receipt printers, desktop computer, office printer/scanner, modem)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pappalecco franchise?
The total investment to open a Pappalecco franchise ranges from $343K – $637K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pappalecco franchise owners earn?
Pappalecco 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 Item 19 in the Pappalecco 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 Pappalecco FDD and qualifies whose outlets they describe.
What is Pappalecco's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Pappalecco (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 Pappalecco franchise locations are there?
As of their most recent FDD filing, Pappalecco has 2 total units in the United States, including 0 franchised units and 2 company-owned units.
Is Pappalecco a good franchise to buy?
FranchiseVerdict rates Pappalecco as a D-grade franchise with a verdict score of 36 out of 100 (higher is better), 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.
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.