Mountain Mike's Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$476,500 - $982,611
Franchise Fee
$7,500
Total US Locations
299
Business Summary
Mountain Mike's Pizza operates pizza restaurants that offer pizza, sandwiches, salads, and other food products and services. These restaurants provide options for dine-in, delivery, and carryout customers.
Corporate History
Mountain Mike's Pizza's brand began operating pizza restaurants in approximately June 2000 under a predecessor company called Concept Acquisitions, LLC (COAC). Mountain Mike's Pizza, LLC, the current franchisor, was organized in Delaware on February 22, 2017. On April 4, 2017, the current franchisor acquired substantially all of COAC's assets, including the Mountain Mike's Pizza brand.
Financial Overview
Investment Range
$476,500 - $982,611
Franchise Fee (Low)
$7,500
Franchise Fee (High)
$30,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$360,000
Equipment Costs (High)
$900,942
Working Capital
$23,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Mountain Mike's Pizza maintains positive working capital, with current assets exceeding current liabilities. However, net income significantly decreased from $9.7 million in 2023 to $4.5 million in 2024, and the company has experienced a net decrease in cash and restricted cash for both 2023 and 2024. The company is a guarantor of a substantial term loan for its sole member, amounting to approximately $67.3 million as of December 31, 2024, though the sole member was in compliance with all debt covenants. A notable expense in 2024 was a $6.9 million area developer rights buyout related to restaurants developed prior to the brand's acquisition by the current franchisor.
Financing Details
Mountain Mike's Pizza does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
299
Franchised Units
299
Corporate Units
0
Avg Square Footage
2,850
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Mountain Mike's Pizza has no litigation cases that are required to be disclosed in this Franchise Disclosure Document.
Bankruptcy History
Mountain Mike's Pizza's Chief Operations Officer, Steve Adyani, filed for personal Chapter 7 bankruptcy on December 15, 2016, in the United States Bankruptcy Court, Southern District of California. This personal bankruptcy was related to family medical debt and was discharged on March 14, 2017.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Mountain Mike's Pizza franchisees must give timely notice, secure acceptable premises for the entire successor term, remodel their restaurant to meet Mountain Mike's Pizza's then-current standards, sign a new franchise agreement (which may have different terms), and pay a successor franchise fee.
Training & Support Program
Franchisor Assistance
Mountain Mike's Pizza provides franchisees with pre-opening assistance, including site selection criteria and lease approval, mandatory and suggested specifications and layouts, and identification of required assets and suppliers. The franchisor also offers help with the initial marketing program and trains the franchisee or managing owner and one supervisory employee. Ongoing support includes advice on operations, recommendations for standards and procedures, purchasing, advertising and marketing programs, and supervisory employee training. Franchisees also receive access to the Operations Manual, periodic refresher training courses, and participation in the Marketing Fund and advertising cooperatives. Mountain Mike's Pizza also maintains a Franchise System Website/Intranet and specifies the Computer System for restaurant operations.
Initial Training Hours
195
Training Location
Franchise Support Center in Irvine, California, operating Mountain Mike's Pizza Restaurants in California, or another designated location (which may be online).
Ongoing Support
After opening, Mountain Mike's Pizza provides franchisees with ongoing advice on restaurant operations, recommendations for system standards, specifications, and operating procedures. Franchisees also receive guidance on purchasing, advertising, and training for supervisory and administrative staff. The franchisor maintains and administers a Marketing Fund and advertising cooperatives, and provides access to a Franchise System Website and Intranet. Periodic refresher training courses are also offered, and the franchisor issues and modifies System Standards for continuous compliance.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
protected
Territory Size Requirements
Mountain Mike's Pizza typically defines the Protected Area as a 1½ mile radius from the franchisee's restaurant. The exact size may vary based on the restaurant's location, local traffic patterns, and the demographics of the area.
Staffing Notes
Mountain Mike's Pizza requires franchisees to operate their restaurants in compliance with System Standards, which may regulate staffing and employee dress/appearance. However, Mountain Mike's Pizza emphasizes that franchisees have sole responsibility for their labor relations and employment practices, including employee selection, promotion, termination, hours worked, rates of pay, benefits, work assigned, discipline, and adjustment of grievances. Franchisees must clearly communicate to their employees that they are the sole employer and obtain acknowledgments from all restaurant employees to that effect.