PappaleccoFranchise Cost, Revenue & Review 2026
Data from FDD filing
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]. Per the 2025 FDD, average unit revenue was $1.1M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $343K – $637K
- 65th pct Service Resta…
- Avg gross sales
- $1.1M
- 38th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 2
- 10th 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
42% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $343K – $637K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $1.1M), with an estimated 42% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 53/100.
- Revenue data based on only 2 reporting units. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Pappalecco Franchising, LLC
- Parent company
- Gelaterie Bucci Inc.
- Incorporated in
- CA
- HQ
- 3402 Kurtz Street, San Diego, California 92110
- Auditor
- DA Advisory Group PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Pappalecco franchisees operate Italian casual dining establishments serving traditional Italian cuisine. Day-to-day operations include food preparation, kitchen management, front-of-house service, inventory control, and customer relationship management in a sit-down dining environment.
- CEO
- Francesco Bucci
- Headquarters
- CA
- Founded
- 2022
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 14 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$168K
15.0% margin
Unlevered ROIC
30%
EBITDA / total invested capital
Payback
3.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $343K – $637K
- Near category avg vs category
- Liquid capital req'd
- $50K – $80K
- Below avg, review vs category
- Franchise fee
- $50K – $50K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 2.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $50 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $1.1M
- Avg p&l bottom line
- $205K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 41.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Actual
- Sample size
- 2 units
- vs category median 28 · small
- Range (low → high)
- $1.1M→$1.2M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Pappalecco Compares
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
- Transfers (3yr)
- 0
- 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Score breakdown · what drove the 53 / 100 rating
- 01MINOROnly 2 operating units represents an extremely small, unproven franchise system with no demonstrated growth trajectory
- 02HIGHNo Item 19 financial performance representation ('Going Concern: False') limits ability to verify the $1.1M average revenue claim independently
- 03MINORHigh initial investment ($343K-$636.5K) relative to system size creates significant risk if franchisee underperforms or system contracts
- 04HIGHAbsence of disclosed litigation is notable but not reassuring given the minimal unit count and short operating history
- 05MINOR5% royalty on $1.1M revenue generates only $55,750 annually in franchisor revenue per unit, potentially insufficient to support franchise operations and support infrastructure
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 | 10 years |
| Territory type | radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| 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
- On-site and at franchisor location
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pappalecco · FDD (2025) PDF
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?
According to Item 19 of the Pappalecco FDD, the average gross sales per unit is $1.1M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 A-grade franchise with a risk score of 53 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.
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.