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Mr Gattis Pizza

Pizza · 2024 FDD

Mr Gattis Pizza offers family entertainment centers featuring all-you-can-eat pizza, pasta, and salad buffets with games and amusements. Known for combining dining with fun in a 12,500 sq ft+ facility, it operates in the casual dining and entertainment franchise sector.

$2,143,000 – $3,837,097
Total investment
$50,000
Franchise fee
80
Systemwide units
10 yrs
Agreement term

About Mr Gattis Pizza

Founded1964
HeadquartersAustin
Industryrestaurant

Mr. Gatti's Pizza, formerly known as Gatti's Pizza and commonly shortened as Gatti's, is a Southern and Southeastern United States pizza-buffet chain based out of Fort Worth, Texas.

Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)

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Mr Gattis Pizza franchise FAQ

How much does it cost to open one — the total initial investment?

This isn't specified in the excerpts.

What is the initial franchise fee?

The initial franchise fee for a single Mr. Gatti's FEC is $50,000 [p.12]. This fee is fully-earned and non-refundable upon signing the Franchise Agreement [p.7].

What are the ongoing royalty and advertising fees?

The ongoing royalty fee is five percent (5%) of the Mr. Gatti's Pizza Facility's Gross Sales [p.132]. Additionally, there is an advertising cost of 1.0% of gross sales, which falls under advertising costs [p.59].

How long is the initial franchise agreement, and can I renew it?

The term length for the initial franchise agreement isn't specified in the excerpts. However, if you wish to renew your rights to the franchise after the term expires, you may request to do so for one additional consecutive term of ten years, but this is subject to the franchisor's sole discretion and compliance with certain conditions [p.131].

Can I sell or transfer my franchise, and what does that require?

Yes, you can sell or transfer your Mr. Gatti's Pizza franchise, but it requires applying for consent from the franchisor [p.156]. The franchisor may set limits on the number of facilities owned and operated at any time, prohibit sale-leaseback transactions, or condition the transfer with certain requirements [p.156].

On what grounds can the franchisor terminate the agreement?

This isn't specified in the excerpts.

What financial requirements — net worth and liquid capital — do I need to qualify?

This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital required for qualification as a franchisee. However, it mentions that potential transferees must demonstrate sufficient financial resources and capital available for operating the business [p.157] and maintain adequate working capital to fulfill obligations [p.136].

Do I get an exclusive or protected territory?

Yes, you are assigned a specific geographic area around your Mr. Gatti's FEC known as the 'Protected Area.' This area generally excludes protections from certain types of facilities like express units, mini-Mr. Gatti's FECs, and kiosks located in specific locations such as malls or airports [p.43]. The Protected Area typically does not include a 5-mile radius (or 3 miles in densely populated areas) around your Approved Location, except for special facilities [p.127].

What training and ongoing support does the franchisor provide?

The franchisor provides initial training and training materials for both classroom and on-the-job components of the Mr. Gatti's Training program at no charge [p.39, p.42]. This includes a one-day Train the Trainer session to certify you in using the team member training platform [p.39]. Ongoing support is provided through 14 days of pre-opening and post-opening training for both hourly employees and management teams [p.39, p.42]. Additionally, the franchisor will send a customized training calendar illustrating dates for support center training team visits [p.39, p.42]. This support continues for at least your first two weeks of operation [p.38].

How many franchised outlets are there, and how many have closed or been terminated?

As of MGPLLC's last fiscal year ended December 25, 2022, there were a combined total of 68 company-affiliated and franchised Mr. Gatti's Pizza Facilities operating in the United States, which included 50 company-affiliated and franchised Mr. Gatti's FECs. This excerpt does not specify the number of closed or terminated outlets. [p.7]

Does the franchisor share any financial performance or earnings information?

Yes, the franchisor can provide financial performance information if there is a reasonable basis for it and it is included in the Disclosure Document [p.56]. However, your individual results may differ substantially from those stated [p.56], and written substantiation for this financial performance representation is available on request.

What am I restricted to selling, and where must I buy supplies?

You are generally required to source specific items from approved or designated suppliers as outlined. For instance, certain supplies like games, amusements, rides, redemption items, food products bearing the Marks, and beverages (fountain drinks, related equipment, and certain bottled beverages) must be purchased from approved or designated vendors [p.140, p.25]. Additionally, you may not operate a similar business during the term of your franchise agreement, which includes restrictions on location, access to customers, what you sell, marketing, and hours of operation [p.3]. This isn't specified in the excerpts for all products or services you must sell.