Mellow Mushroom

Franchise agreement

Franchisor’s uniform system of accounting and recordkeeping, including its standardized forms, are incorporated in the Manual, which Franchisee must use on a continuing basis and in the manner Franchisor prescribes to maintain the books and records of the Restaurant and Franchisee’s business.

Franchise agreement

Franchisor must at all times have independent access to the information stored on Franchisee’s Computer System (other than Franchisee’s employee records, as Franchisee controls exclusively its labor relations and employment practices).

Franchise agreement

No later than ten (10) days following the end of each calendar month, Franchisee must provide Franchisor with “compilation report” financial statements, including a profit-and-loss statement and a balance sheet reflecting the Restaurant’s financial condition as of the last day of 32 MELLOW MUSHROOM FA (2026)…

Item 20

For information about the Product Innovation and Enhancement Committee (“PIE COMM”) we created in 2014, of which several franchisees are members, please contact its current chairperson Elizabeth Brasch (see Item 2) at our principal business address (PIE COMM does not have its own contact address or telephone number).

Item 11

We may require you any time during the franchise term 46 MELLOW FDD (2026) 1625930267.2 to obtain specific technology products and may modify specifications for and components of the technology system (including, if applicable, those for our gift-card and customer-loyalty programs).

Item 8

In our fiscal year ended September 30, 2025, and according to the statement of operations in our year-end audited financial statements, our consolidated revenue from all items Red Bud sold directly to our franchisees, or to wholesalers that resold the items to our franchisees, was $19,429,596, which is 30.57% of our…

Item 8

We (and our affiliates) have the right to receive payments from suppliers on account of their actual and/or prospective dealings with you and other franchisees (and us) and to use these amounts without restriction for any purposes we deem appropriate (unless we agree otherwise with the supplier).

Item 8

Collectively, the purchases and leases described above represent almost 100% of your total purchases and leases to establish and then operate the Restaurant.

Item 8

We may charge you a reasonable fee to cover our costs to make this decision (see Item 6) and will decide within a reasonable time (typically 30 to 60 days).

Item 8

If you want to use any item or service that we have not yet evaluated or to buy or lease from a supplier that we have not yet approved, you first must submit sufficient information, specifications, and samples so we can determine whether the item or service complies with our standards or the supplier meets…

Franchise agreement

Immediately assign to Franchisor, or forward to numbers Franchisor specifies, all telephone and other numbers in Franchisee’s name that Franchisee used in operating the Restaurant

Franchise agreement

Franchisee must ensure that all operating-systems software is regularly maintained and updated in accordance with the manufacturers’ specifications and in compliance with Payment Card Industry (PCI) Compliance Standards.

Franchise agreement

Franchisor may inspect the Restaurant from time to time to enhance uniformity and quality control.

Item 11

We may modify the Operations Manual periodically to reflect changes in our system.

Item 12

You will operate the Restaurant at a specific location we first must accept.

Item 11

You may not develop, maintain, link to, or authorize any other website mentioning or describing you or the Restaurant or displaying any of the Marks.

Item 6

You must spend the minimum amounts we periodically require to advertise and promote your Restaurant locally.

Item 8

You must issue and honor/redeem gift certificates, coupons, and gift, loyalty, and affinity cards for Mellow Mushroom restaurants and participate in, and comply with the requirements of, our gift-card and other customer-loyalty, affinity, and similar programs.

Item 11

If we establish a Cooperative for the geographic area in which your Restaurant is located, you must participate in the Cooperative as its governing documents require.

Item 8

If we approve distributors or suppliers or designate a distributor or supplier for an item or service, you must buy that item or service only from an approved distributor or supplier or only from the designated distributor or supplier, as applicable.

Item 6

You must pay the Weekly Royalty Fee and other amounts due under the Franchise Agreement by automatic debit or other electronic means and sign all documents (and take any other action) we require to implement this payment system.

Item 8

You must issue and honor/redeem gift certificates, coupons, and gift, loyalty, and affinity cards for Mellow Mushroom restaurants and participate in, and comply with the requirements of, our gift-card and other customer-loyalty, affinity, and similar programs.

Item 15

Your Restaurant must at all times be under the direct supervision of your Managing Owner or a Qualified GM who has successfully completed training.

Franchise agreement

Franchisee is required to purchase a sufficient quantity of uniforms from Franchisor or an approved supplier on such standard terms and prices as may be in effect at the time.

Item 11

You must use the technology system we periodically designate.

Franchise agreement

Franchisor must at all times have independent access to the information stored on Franchisee’s Computer System (other than Franchisee’s employee records, as Franchisee controls exclusively its labor relations and employment practices).

Item 11

We will provide additional training at your request or if we think you or your managerial employees need it. You must pay for this training.