Is Mellow Mushroom or Gyu-Kaku cheaper to open?

Mellow Mushroom costs $1,695,000–$2,916,500 and Gyu-Kaku costs $2,268,261–$2,572,591 to open (FDD Item 7). Mellow Mushroom has the lower entry cost.

Which is safer, Mellow Mushroom or Gyu-Kaku?

SBA 7(a) charge-off rate is 15.0% for Mellow Mushroom and 0.0% for Gyu-Kaku. Lower is safer, so Gyu-Kaku has the stronger loan-repayment record.

Which is the better franchise, Mellow Mushroom or Gyu-Kaku?

FranchiseVerdict grades Mellow Mushroom B and Gyu-Kaku A, from FDD Items 5–7, 19–21 and SBA loan performance. See the full side-by-side above.

Mellow Mushroom vs Gyu-Kaku

Franchise Comparison 2026

Both Mellow Mushroom and Gyu-Kaku are full-service restaurants franchises. Mellow Mushroom requires an investment of $1.7M – $2.9M while Gyu-Kaku requires $2.3M – $2.6M. Mellow Mushroom discloses average revenue of $2.7M; Gyu-Kaku makes no financial performance representation in its Item 19, which is voluntary under the FTC Franchise Rule. On SBA loan performance, Gyu-Kaku has a lower charge-off rate (0.0%) compared to Mellow Mushroom (15.0%). FranchiseVerdict rates Mellow Mushroom B (Above average) and Gyu-Kaku A (Strongest tier).

Metric	Mellow Mushroom	Gyu-Kaku
Verdict Grade	BAbove average	AStrongest tier
Investment Range	$1.7M – $2.9M	$2.3M – $2.6M
Franchise Fee	$50K	$50K
Royalty Rate	5.0%	5.0%
Average Revenue (Item 19)	$2.7M	N/ANo Item 19 representation
SBA Charge-Off Rate	15.0% (142 loans)	0.0% (12 loans)
Total Units	161	60
Unit Growth (YoY)	-5 units	-4 units
Year Began Franchising	1987	2008
FDD Year	2026	2025