About Mercato Cucina Franchise
Mercato Cucina is an Italian inspired eatery and marketplace franchise offering coffee, breakfast, lunch sandwiches, and catering services with a rustic, high end aesthetic.
Each location combines a casual dining experience with an Italian marketplace concept, creating a warm, inviting atmosphere where customers can enjoy quality food and browse curated specialty products.
The franchise fee is $39,500, and Mercato Cucina has been franchising since 2023.
Mercato Cucina Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $39,500 | One-time payment upon signing |
| Royalty Fee | 5.5% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues (Local Advertising), $2,000 - $5,000 (Grand Opening Advertising) | National brand fund |
| Total Investment Range | $198,650 – $346,300 | Includes build-out, inventory, working capital |
The investment range of $199K–$346K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Revenue) and marketing fee (1% of Gross Revenues (Local Advertising), $2,000 - $5,000 (Grand Opening Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,500 | $39,500 |
| Traveling and Living Expenses while Training | $3,750 | $7,500 |
| Furniture, Fixtures, and Equipment | $5,000 | $10,000 |
| Real Property Rent and Security Deposits | $9,000 | $18,000 |
| Leasehold Improvements | $50,000 | $100,000 |
| TV, Cameras and other Supplies | $40,000 | $80,000 |
| Initial Inventory | $10,000 | $20,000 |
| Signage | $5,000 | $8,000 |
| Grand Opening Advertising | $2,000 | $5,000 |
| Licenses, Permits, and Certifications | $1,000 | $3,000 |
| Insurance (3 Months) | $900 | $1,800 |
| Professional Fees | $2,500 | $3,500 |
| Additional Funds (3 months) | $30,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Approximately $200 per month (plus transaction costs) (POS and Software Fees) |
| Audit Fee | Cost of inspection plus the amount of the underpayment plus interest |
| Interest | Lesser of 1.5% per month or the highest commercial contract interest rate allowed by law |
| National Franchise Convention Fee | $500 |
| Maintenance and Refurbishing of Business | You must reimburse our expenses |
| Insufficient Funds | $75 |
| Relocation Assistance | Our actual cost |
| Retraining Fee | Our then current standard rates or $250 per trainee per day, whichever is greater |
| Additional Training or Assistance | Currently, we charge $250 per day per person plus expenses for training at our location, and $250 per day per person plus expenses for training plus travel, lodging, and meal expenses incurred by our trainer for training at your location. |
| Product and Service Purchases | Actual amount incurred |
| Testing of Products or Approval of new Suppliers | Not to exceed $1,000 |
| Customer Service Fee | Actual amount of our cost or reimbursement |
| E-mail Maintenance Fee | None at this time; we reserve the right to charge up to $50/month |
| Insurance | You must reimburse our costs |
| De-Identification Reimbursement Fee | Actual costs incurred |
| Management Fee | $250 per person per day (plus other costs and expenses) |
| Indemnification | Will vary |
| Cost of Enforcement | All costs, including reasonable attorneys’ fees |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 39 Hours Classroom, 81 Hours On-the-Job |
| Classroom Training | 39 hours |
| On-the-Job Training | 81 hours |
| Training Location | Affiliate restaurant in Huntington Station, NY or another franchisor training center we designate. |
| Additional Training | Franchisor may provide and require ongoing training programs, seminars, conferences, or webinars. Franchisee pays $250 per person per day if training is at the franchisor's location, or $250 per person per day plus travel, lodging, and meal expenses if training is at the franchisee's location. Not more than two (2) sessions per calendar year are required. Franchisee is responsible for all travel costs, room and board, and employees’ salaries incurred in connection with attendance at such training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Normally includes a population size of 250,000 people or a 3-mile radius around your outlet, whichever is less. |
| Description | A specific geographic region defined and approved by radius, zip codes, natural, or political boundaries as set forth in the Franchise Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Successive terms of TEN (10) years each |
| Renewal Fee | $10,000 |
| Renewal Conditions | Franchisee must have fully complied with the Franchise Agreement, made necessary capital expenditures to maintain uniformity, satisfied all monetary obligations, not be in default, given timely written notice (9-12 months prior), signed a current Franchise Agreement (which may have materially different terms), complied with current qualifications and training requirements, signed a general release, and paid the renewal fee. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Franchisor's consent is conditioned upon franchisee compliance with requirements in Section 19, payment of all obligations, execution of a general release by franchisee and transferring owners, prospective transferee meeting franchisor's business and financial standards, transferee and owners signing current franchise agreement, transferee executing a general release, franchisee providing all related contracts, payment of transfer fee, transferee and owners agreeing to be personally bound by the agreement, transferee obtaining all necessary consents, franchisee and owners executing nondisclosure and non-competition agreements, and transferee completing initial training. |
| Termination for Cause | Franchisor may terminate without opportunity to cure if franchisee fails to timely establish/equip/commence operations, fails to complete training, fails to maintain required licenses for >5 days, makes material misrepresentation, is convicted of felony/crime affecting reputation, fails to refrain from adverse behavior, discloses confidential information, fails to have required individuals sign non-compete, abandons business for >5 days, transfers control without approval, fails to maintain supervision by approved manager for >180 days after death/incapacity, understates amounts due by >2% on 2+ occasions, becomes insolvent, misuses Marks, fails to submit reports/pay fees on 2+ occasions within 12 months, violates health/safety law on 2+ occasions, engages in exclusively reserved activity, fails to comply with applicable law within 10 days notice, breaches agreement 3 times in 12 months, defaults under other agreements, performs Targeted Marketing outside territory, or fails to refer business opportunities. For other breaches, a 30-day cure period is given, or 10 days for insurance, or 5 days for payments. |
| Non-Compete Period | 2 years after termination or expiration of the Franchise Agreement |
| Non-Compete Details | During the term of the franchise, franchisee, owners, officers, directors, executives, managers, professional staff, and employees are prohibited from diverting business to a competitive business or causing injury to Marks/System, or owning/working for a competitive business. For 2 years after termination/expiration, they may not offer competitive business services within 25 miles of any other franchised outlet or franchisor-owned business, or solicit customers/associates to compete. Subject to applicable state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Either the Franchisee or its on-site Designated Manager must devote at least forty (40) hours per week to the management of the day-to-day operations. The franchisor retains the right to accept or reject any proposed Designated Manager and may require them to complete initial training. Replacement managers must also be approved and may be required to attend training at the franchisee's expense. |
| Required Suppliers | Franchisee must purchase computer hardware and software designated by franchisor, furniture, fixtures, and equipment from designated vendors or subject to franchisor specifications, inventory and supplies from approved suppliers or subject to franchisor specifications, and signature items (sauces, seasonings, branded cup sleeves, Extra Virgin Olive Oil, Balsamic Vinegar, Sun Dried Tomatoes, Pesto, Black Oil Spread, Mixed Olives, Artichokes Hearts, Bell Pepper Relish) directly from franchisor. Signage must also be purchased according to franchisor specifications. Insurance must meet franchisor's requirements. |
| Supply Restrictions | Franchisor is the sole approved supplier of signature items. Franchisor is an approved supplier of advertising material but not the only one. Franchisee may propose alternative suppliers for approval, subject to testing costs up to $1,000. Franchisor does not maintain written criteria for approving suppliers. Franchisor's officer, David Buico, owns an interest in the franchisor. |
| Franchisor Revenue from Suppliers | Franchisor may, but does not currently, derive revenue or other material consideration from required purchases or leases. In the last fiscal year ending December 31, 2022, no revenue or material consideration was earned. Designated suppliers may make payments to the franchisor from franchisee purchases, but no supplier rebates were received in fiscal year 2022. Approximately 70% of initial expenditures and 30% of ongoing expenditures are for goods and services purchased from franchisor, an affiliate, or approved suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee any notes, leases, or obligations. |
Mercato Cucina Franchise Earnings — Item 19
Mercato Cucina 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.
Mercato Cucina 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.
Mercato Cucina System Growth
Mercato Cucina currently operates 0 franchised locations and 1 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 | 0 |
| 2021 | 1 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by SMITH, BUZZI & ASSOCIATES, LLC. for year ending December 31.
Mercato Cucina Franchise — FAQ
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