Mama's Meatball logo

Mama's Meatball Franchise

Audited Financials
Food and BeverageEst. 2021San Luis Obispo, CA
www.mamasmeatball.com

Risk Score

Pending analysis

Investment Range

$311,500 - $523,900

Franchise Fee

$35,000

Min Cash Required

$30,000

Total US Locations

1

Business Summary

Mama's Meatball operates Italian restaurants that offer authentic, homemade Italian dining. The business model includes both a Take-Out & Delivery Only format and a Self-Serve Dine-In format, allowing franchisees to choose the operational style that best fits their market.

Corporate History

Mama's Meatball Franchise, LLC was formed in California on October 14, 2021. The franchisor conducts business under its corporate name and also as Mama's Meatball. The company did not operate the type of business being franchised before starting to offer franchises in 2022. An affiliate, Mama's Meatball, a California sole proprietorship, has operated an outlet similar to the franchised model since 2006, with a period from 2008-2015 where the affiliate operated through Mama's Meatball, Inc. This affiliate has not offered franchises and does not provide products or services to franchisees.

Financial Overview

Investment Range

$311,500 - $523,900

Franchise Fee (Low)

$35,000

Franchise Fee (High)

$35,000

Minimum Cash Required

$30,000

Royalty %

5%

Marketing %

1%

Equipment Costs (Low)

$60,000

Equipment Costs (High)

$80,000

Working Capital

$52,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Item 21 of the Mama's Meatball FDD includes a special risk note indicating that the franchisor is undercapitalized and may not be able to meet pre-opening obligations to all franchisees. The document also states that prospective franchisees or sellers of franchises should be advised that no independent certified public accountant has audited the unaudited portion of the financial statements or expressed an opinion with regard to their content or form. This indicates a potential financial risk for franchisees.

Financing Details

Mama's Meatball does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any franchisee's note, lease, or other obligation.

Performance Metrics

Total US Locations

1

Franchised Units

0

Corporate Units

1

Franchising Since

2022

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their franchise agreement, Mama's Meatball franchisees must meet several conditions. They must have fully complied with all material provisions of the Franchise Agreement during its entire term and have made any necessary capital expenditures to maintain uniformity with the System's current standards. All monetary obligations owed to Mama's Meatball or its affiliates must be satisfied and have been met on time throughout the agreement term. Franchisees cannot be in default of any agreement with Mama's Meatball. They must provide written notice of their intent to renew 9 to 12 months before the current term ends. Franchisees will need to sign Mama's Meatball's then-current franchise agreement, which may have different terms and conditions, but they will not pay a new initial franchise fee. They must also comply with current franchisee qualifications, agree to any new training requirements, sign a general release of claims (where permitted by state law), and pay a renewal fee equal to 25% of the then-current initial franchise fee.

Training & Support Program

Franchisor Assistance

Mama's Meatball provides several forms of assistance to its franchisees. Before opening, the franchisor offers an initial training program for the franchisee (or managing owner) and two manager-level employees, along with general opening guidance. Mama's Meatball loans a copy of its Operations Manual or provides electronic access. The franchisor assists with establishing prices and provides specifications or approved supplier lists for equipment, signs, fixtures, initial inventory, and supplies, though it does not deliver or install these items. Limited assistance is also provided to help conform premises to local codes and obtain permits, and with advice on the type and number of employees to hire (though the franchisee is solely responsible for hiring/managing staff). After opening, Mama's Meatball offers general advice and guidance by phone and email, and makes ongoing training available as deemed necessary. Franchisees also receive modifications to the Operations Manual as they are made.

Initial Training Hours

134

Training Location

Our affiliate outlet in San Luis Obispo, CA, or another franchisor training center we designate

Ongoing Support

Mama's Meatball offers ongoing advice, discusses problems, and provides general guidance to franchisees by telephone and/or electronic correspondence regarding planning and operating the franchised business, without charging for this service. The franchisor may also offer ongoing training programs, seminars, conferences, conventions, or webinars, which franchisees may be required to attend up to twice a year at their own expense (including travel, room, board, and employee salaries). The training fee for these sessions is $250 per person per day. Additionally, Mama's Meatball provides franchisees with modifications to the Operations Manual as they become available.

Franchise Requirements

Ideal Candidate Profile

Mama's Meatball seeks qualified individuals, and for area developers, the franchisor bases qualifications on financial resources, industry experience, business experience, and marketing and sales plans. Generally, an ideal candidate would possess the financial capacity and expertise to develop multiple businesses, typically three to five. The franchisee (or their designated manager) must devote at least 40 hours per week to managing the day-to-day operations of the franchised business.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Hands-On

Territory Type

Exclusive

Territory Size Requirements

Mama's Meatball defines its franchise territories for individual outlets as a specific geographic region, normally including a 5-mile radius around the franchisee's location. For area developers, the Development Area is determined by factors such as its size, population, and the developer's financial capacity and expertise. While the franchisor or its affiliate reserves the right to use other channels of distribution like the Internet within a franchisee's territory, it would typically direct inquiries for services from that territory to the franchisee's outlet. Franchisees are generally not granted approval to open additional outlets within their territory unless Mama's Meatball believes they have the necessary time, energy, capital, and management structure.

Staffing Notes

Mama's Meatball requires that the franchised business always be under the direct supervision of either the franchisee as the owner/operator or an approved manager who has successfully completed the franchisor's training program. This designated manager must dedicate at least 40 hours per week to managing the day-to-day operations. The franchisee is solely responsible for hiring, firing, compensating, paying payroll taxes for, and supervising their employees. If a designated manager needs to be replaced, the new manager must be approved by Mama's Meatball within 60 days and may be required to complete the training program at the franchisee's expense. Mama's Meatball provides assistance with the type and number of employees that should be hired, but the ultimate responsibility lies with the franchisee.