About Maggiano's and Maggiano's Little Italy Franchise
Maggiano's Little Italy is a full service Italian American restaurant franchise that has been franchising since 2017, backed by Brinker International, Inc.
The brand offers a menu of classic Italian dishes including pasta, steaks, seafood, and signature appetizers, served in an elegant, old world Italian dining room setting.
Maggiano's is known for its generous portion sizes, family style dining options, and special event hosting.
Maggiano's and Maggiano's Little Italy Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 1.25% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0.5% of Gross Sales | National brand fund |
| Total Investment Range | $4,740,000 – $6,895,000 | Includes build-out, inventory, working capital |
The investment range of $4.7M–$6.9M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (1.25% of Gross Sales) and marketing fee (0.5% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Leasehold Expense | N/A | N/A |
| Pre-Construction | $190,000 | $300,000 |
| Construction Costs | $3,100,000 | $3,900,000 |
| Site Work | $65,000 | $390,000 |
| Exterior Signage | $25,000 | $75,000 |
| Furniture/Fixtures/ Sound System/TVs | $165,000 | $225,000 |
| Kitchen/Bar Equipment/ | $200,000 | $400,000 |
| Initial Training | $60,000 | $350,000 |
| Opening Team Costs | $120,000 | $160,000 |
| Inventory | $75,000 | $100,000 |
| Bar/Kitchen Accessories | $100,000 | $115,000 |
| Liquor License | N/A | N/A |
| Computer POS System/Kitchen display system/ Installation | $80,000 | $95,000 |
| Additional Funds (3 months) | $525,000 | $750,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of $5,000 or an amount necessary to reimburse us for our expenses, with a single transfer maximum of $25,000 |
| Renewal Fee | $3,500 for each year of the successor term |
| Technology Fee | 3.75% of Gross Sales |
| Audit Fee | Cost of audit, including travel, lodging, wages, and legal and accounting costs |
| Local Advertising Program (LAP) Fee | Minimum - 1% of Gross Sales for airport locations |
| Regional Advertising Program (RAP) Fee | Maximum - 1% of Gross Sales for airport locations |
| National Advertising Program (NAP) Fee | Maximum - 1% of Gross Sales for airport locations |
| Supplemental Marketing Programs | Currently, no fee |
| Replacement and Supplemental Training | Currently, $4,000, plus costs of your personnel attending training |
| Product Testing Fee | Currently, approximately $1,500 per year per tested product charged to the supplier; reasonable fee based on our costs if testing is required due to specification non-compliance or use of unapproved supplier |
| Approved Supplier Fee | Currently, approximately $1,025 per day, plus travel expenses; typically charged to the supplier or distributor |
| Licensing Fees | Currently, none |
| Restaurant Inspection | Varies |
| Mandatory Sanitation and Food Safety Program (SAFE) | Currently, approximately $320.37 per visit. |
| Insurance | Varies depending on your insurance costs at the time |
| Offering | $10,000 per offering |
| Late Charge and Interest | $500 late charge for each delinquent payment, and the lesser of 18% per annum or maximum legal rate (the maximum legal rate in California is 10% per annum); plus $500 administrative charge for late payment |
| Indemnification | Will vary depending on loss |
| Enforcement Costs | Will vary |
| Liquidated Damages for Unsatisfactory Inspection Scores | 1% of Gross Sales |
| Relocation or Reconstruction | Minimum royalty and technical services fee agreed by you and us |
| Decor Items, Certain Furniture and Fixtures | Currently, the prices that we charge our company-owned restaurants for the items, including a 15% administration fee; prices are subject to change with prior written notice |
| Gift Cards | Approximately $1,500 per year/per restaurant |
| Management Services | 10% of Gross Sales |
| Mandatory Remodeling | Actual costs you incur |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 8 to 10 weeks |
| Classroom Training | 61 hours |
| On-the-Job Training | 482 hours |
| Training Location | Maggiano’s Restaurant (at one of our Certified Training Restaurants located throughout the U.S.) |
| Additional Training | We may require your personnel to attend supplemental training programs and reserve the right to charge a reasonable fee for these programs. Franchisees are responsible for all associated costs including travel, lodging, and meals. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. The Franchise Agreement grants you the right to operate the Restaurant only at the approved location, and there are no territorial rights granted. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Up to 10 years, tied to lease term |
| Renewal Term | Up to 10 years |
| Renewal Fee | $3,500 for each year of the successor term |
| Renewal Conditions | You must give us notice 12-24 months before term end, renovate and modernize the restaurant, not be in default, satisfy all monetary obligations, have the right to possession of the location, execute a general release, and comply with current qualification and training requirements. |
| Transfer Fee | The greater of $5,000 or an amount necessary to reimburse us for our expenses, with a single transfer maximum of $25,000 |
| Transfer Conditions | You must obtain our written consent before transferring any interest. Conditions include: pay all amounts due, not be in default, execute a general release, pay a transfer fee, remain liable for pre-transfer obligations, proposed transferee must sign an agreement assuming all obligations, meet our criteria, sign our then-current franchise agreement, remodel/upgrade the restaurant, complete training program, if entity, show compliance with representations/warranties/covenants, and satisfy other reasonable conditions. |
| Termination for Cause | Termination can occur for material breach of any obligation. Specific curable defaults include: abandoning the restaurant for 3+ days (unless approved/due to external forces), breaching lease, losing right to transact business, engaging in conduct unfavorable to franchisor, failing to comply with health/safety standards, misusing marks, entering unauthorized agreements, failing to pay amounts owed, repeatedly failing to comply, or failing to open within 365 days. Specific non-curable defaults include: insolvency/bankruptcy, unauthorized transfers, judgments outstanding for 30+ days, execution levied against business/property, felony conviction or crime involving moral turpitude, submitting false/misleading documentation, or violating anti-terrorism laws. |
| Non-Compete Period | During the Term and for a period of 2 years after termination or expiration |
| Non-Compete Details | During the term, you are prohibited from: diverting business/customers to competitors, taking actions injurious to Maggiano's Marks/System, or having any interest in a 'Competitive Restaurant' (casual-dining Italian cuisine or restaurants under specific tradenames like Biaggi, Bravo, Brio, Bertolini’s, Bertucci’s, Bucca de Beppo, Carraba’s, Carmine’s, Coco Pazzo, Cucina! Cucina!, Il Fornaio, Italianni’s, Johnny Carino’s, Olive Garden, Old Spaghetti Factory, Piatti's, Romano’s Macaroni Grill, Tucce Benucci, and Vinny Testa’s). After termination/expiration or transfer, for 2 years, you are prohibited from: diverting business/customers to competitors, taking actions injurious to Maggiano's Marks/System, or having any interest in any Competitive Restaurant located in the United States. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must designate a Managing Owner and/or an Operating Partner. The Managing Owner must (i) own the largest percentage share of unencumbered equity ownership in Franchisee, but not less than 10%, (ii) be authorized to bind Franchisee, (iii) be authorized to direct actions for compliance, and (iv) unless an Operating Partner is appointed, devote full time and best efforts to the operations of the Restaurant. If an Operating Partner is designated, they must be approved by Franchisor, authorized to bind Franchisee and direct actions for compliance, devote full time and best efforts, and live within a 100-mile radius of the Restaurant. |
| Required Suppliers | You must obtain gift card processing services from our designated third party supplier (Fiserv), and purchase computer hardware and software and electronic cash register systems and kitchen display systems (Aloha POS and Aloha Kitchen display systems from NCR or an approved supplier) from our designated third party suppliers. |
| Supply Restrictions | You generally have no obligation to purchase or lease from us, our affiliates, or other designated third party suppliers any of the products, services, supplies, fixtures, equipment, inventory or real estate used in establishing or operating the Restaurant. However, you must obtain gift card processing services from our designated third party supplier, purchase computer hardware and software and electronic cash register systems and kitchen display systems from our designated third party supplier. We are an approved supplier (but not the only approved supplier) of the other items listed below. You must comply with all of our standards and specifications for the purchase of all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment (including computer hardware and software) and other products used or offered for sale at the Restaurant. |
| Franchisor Revenue from Suppliers | None in 2022, but may receive payments, fees, commissions or reimbursements from approved suppliers in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any notes, leases or other obligations you may make to others. |
Maggiano's and Maggiano's Little Italy Franchise Earnings — Item 19
Maggiano's and Maggiano's Little Italy does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Maggiano's and Maggiano's Little Italy Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Maggiano's and Maggiano's Little Italy System Growth
Maggiano's and Maggiano's Little Italy currently operates 2 franchised locations and 52 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 53 |
| 2021 | 1 | 0 | 54 |
| 2022 | 0 | 0 | 54 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 9 states: CA, IL, IN, MD, MI, MN, NY, VA, WA
Franchisor Financials (Item 21)
Audited by KPMG LLP for year ending June 29, 2022.
Maggiano's and Maggiano's Little Italy Franchise — FAQ
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