How to Finance a Gatti’s Pizza Franchise: Buffet and Arcade Costs
By Marc Cornella
A Gatti’s Pizza franchise loan is rarely a small-restaurant loan. The brand’s main franchise model is a family entertainment center that pairs an all-you-care-to-eat pizza buffet with an arcade and party rooms, so a new location involves a large building, a full kitchen, a game floor and the working capital to open all of it at once.
This article covers the franchisor’s published costs and formats, the brand’s SBA Franchise Directory listing and how new owners and resale buyers typically structure the financing.
US Professional Funding is not affiliated with, sponsored by or endorsed by Gatti’s Pizza; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Gatti’s Pizza Franchise Loan at a Glance
- Brand names: the franchisor markets the concept as Mr Gatti’s Pizza, and the SBA Franchise Directory lists it as Gatti’s Pizza/Mr. Gatti’s Pizza/GattiTown.
- Initial franchise fee: $50,000 for a family entertainment center (FEC), and $25,000 for a delivery and carryout only (DELCO) location, according to the franchisor’s website.
- Estimated investment: the franchisor’s published estimates for a single FEC start above $2 million; its pages show different ranges, so rely on Item 7 of the current FDD.
- Formats: a standard FEC of about 12,500 square feet, a small FEC of about 5,000 square feet and a DELCO of about 1,000 square feet, with the franchisor also describing a suggested FEC format of roughly 20,000 square feet.
- System size: 234 locations open or under development at the end of 2024, after 39 new franchise agreements that year, according to the franchisor.
- Candidate profile: business experience and acumen, good credit and a clean background; restaurant experience is not required.
- Royalty and marketing fund: not published on the franchise website; confirm both in Item 6 of the current FDD.
- SBA Franchise Directory: listed, with no additional directory notes.
What Is Gatti’s Pizza?
The brand traces its roots to 1964, when James Eure opened The Pizza Place in Stephenville, Texas. In 1969 he opened Mr Gatti’s Pizza in Austin, named for his wife’s maiden name, and franchised restaurants followed across Texas and the Southeast.
The franchisor reported 234 locations open or under development at the end of 2024 and said it awarded 39 new franchise agreements during that year. In 2025 it also reported 15 locations operating inside large retail supercenters, with 23 more under construction.
The concept. The FEC model is built around a buffet of about 40 all-you-care-to-eat options, an arcade and party rooms. Guests pay for the buffet and can take food with them to the games, which makes the arcade and parties part of the core business rather than an add-on. Delivery is optional, and the franchisor says it helps owners who choose to add it.
Target markets. The franchisor targets small and medium-sized communities with average household incomes of $55,000 to $80,000, and is seeking franchisees in more than 15 states, with growth aimed at the Southeast and Midwest.
How lenders view the concept. Lenders see a long-established name and a model that combines food and entertainment revenue, but also a large, equipment-heavy project. Underwriting focuses on the site, family demographics, management depth and the budget for games and build-out.
Gatti’s Pizza Franchise Formats
The format you choose drives almost every number in the loan request. The franchisor’s opportunities page describes three:
- Standard FEC (about 12,500 square feet): the full buffet, arcade and party room experience.
- Small FEC (about 5,000 square feet): the same concept in a smaller footprint.
- DELCO (about 1,000 square feet): a delivery and carryout only unit, which the franchisor says owners use to supplement their FEC locations.
Its franchise models page also calls an 18,000 to 22,000 square foot unit with an attached arcade a “sweet spot.” Confirm which footprint fits your market before requesting financing, because the build-out, lease and game package all scale with the space.
Gatti’s Pizza Franchise Costs
Initial franchise fee. The franchisor lists a $50,000 initial franchise fee for an FEC and a $25,000 fee for a DELCO. Review Item 5 of the current FDD for when the fee is due, whether any portion is refundable and whether multi-unit or development agreements carry separate fees.
Real estate and build-out. For an FEC, leasehold improvements or new construction are usually the largest cost: buffet line, kitchen ventilation, plumbing and grease management, family-sized restrooms, electrical capacity for a game floor and finishes. Buying land or a building makes the project much larger.
Equipment, games and furniture. Ovens, dough and holding equipment, walk-in refrigeration, buffet wells, dish machines, seating, party room furnishings and the arcade games make up the equipment package.
Opening costs and working capital. Opening inventory, training, signage, technology, grand opening marketing, deposits and funds for the first months all belong in the plan, along with a sizable pre-opening payroll.
Total investment. The franchisor’s own pages publish more than one estimate for a single FEC, and each starts above $2 million. Its startup costs page also gives a separate, much lower range for a DELCO. Because the published figures differ, build your loan request from the Item 7 table in the FDD you actually receive. Item 7 typically breaks the investment into categories like these:
- Initial franchise fee
- Real estate, lease deposits and rent before opening
- Leasehold improvements or construction
- Kitchen and buffet equipment
- Arcade games, party room furnishings and furniture
- Opening inventory and supplies
- Training, travel and grand opening marketing
- Additional funds for the initial operating period
Our article on restaurant build-out financing explains how lenders treat construction budgets and contingencies.
Ongoing Fees and How They Affect Your Loan
The franchise website does not publish the royalty or marketing contribution, so confirm every recurring charge in Item 6 of the FDD: royalty, any advertising fund, technology fees, transfer and renewal fees and any required remodels.
How lenders factor these costs in. Royalties and fund contributions are usually tied to gross sales, so they come off the top before rent, food, labor and debt service. Lenders build them into projected cash flow and test whether a Gatti’s Pizza franchise loan can still be repaid if buffet traffic, party bookings or game revenue fall short.
Franchisor Requirements for New Owners
The franchisor’s ideal candidate page lists three main expectations:
- Business experience and acumen
- Good credit and background history
- The ability to fund the initial investment, which it states starts above $2 million for an FEC
Experience. The franchisor says restaurant experience is not required but is very helpful. It looks for entrepreneurial, business-minded owners who care about hospitality and who stay involved in their locations day to day.
The approval process. The FDD is provided after a conversation with the development team and a franchise application, and a franchise is awarded only after pre-approval. Training begins once the agreement is signed and covers restaurant and entertainment operations.
The franchise website does not publish a minimum net worth or liquid capital figure, so ask the development team for current qualifications.
Ways to Own a Gatti’s Pizza
A new FEC. Most new development involves a standard or small FEC. Financing covers the build-out or construction, equipment, games, franchise fee and working capital, and lenders underwrite it on projections, the site and the owner’s experience.
A DELCO. The franchisor positions DELCO units as a supplement to FEC locations. For an existing FEC owner, a DELCO can be financed as a smaller equipment and build-out loan supported by the existing restaurant’s cash flow.
Buying an existing location. Purchasing an operating FEC lets a lender review actual sales, costs and game revenue. The buyer needs franchisor approval, and lenders check the remaining term, the lease and equipment condition. Our guide to buying a franchise resale covers how transfer approvals and closing timelines fit together.
Financing Options for a Gatti’s Pizza Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can be used for leasehold improvements, equipment, games, the franchise fee, working capital and the purchase of an existing location. For a project of this size, the 7(a) program maximum is an important planning limit.
SBA 504 loans. If you plan to buy or build a freestanding FEC, an SBA 504 loan is designed for owner-occupied real estate and long-lived equipment, and it can be paired with a 7(a) loan for games and working capital.
Conventional term loans. Experienced operators with strong financial statements may use a conventional business loan, especially for a second location or a refinancing.
Equipment financing. Pizza ovens, dough mixers, walk-in coolers, buffet equipment, dish machines and arcade games can often be financed separately, which can preserve cash for opening. See our options for restaurant equipment financing and leasing.
Working capital and lines of credit. An FEC needs funds for pre-opening hiring, inventory and the months it takes to build party bookings, and school calendars and holidays shift traffic. Learn more about restaurant working capital.
Seller financing on resales. When buying an existing location, a seller may agree to carry part of the price. Any seller note would need to be acceptable to the senior lender and is typically subordinate to it, and SBA programs may limit how it is structured.
SBA Loans for Gatti’s Pizza Franchisees
SBA lenders rely on the SBA Franchise Directory to confirm that a brand’s franchise agreement has been reviewed for eligibility. A listing clears the franchise relationship, but every Gatti’s Pizza franchise loan still goes through full underwriting of the borrower and project.
The listing. The brand appears on the directory as Gatti’s Pizza/Mr. Gatti’s Pizza/GattiTown under code S0717, with no additional notes. In plain English, the franchise relationship has been cleared for SBA lending and no extra directory conditions or addenda are flagged. Confirm the listing with your lender when you apply, since directory entries can change.
Program limit. The SBA 7(a) program maximum is currently $5 million, though program rules can change. For larger FEC projects that include real estate, combining 504 and 7(a) financing is one way to fit the full budget.
Application tips. Bring the FDD and franchise agreement, a site or lease plan, a contractor’s budget, equipment and game quotes, a personal financial statement, resumes and projections that separate buffet, party and arcade revenue. Our SBA loan calculator can help you estimate payments while you plan, though estimates are not an offer or approval.
How Lenders Evaluate a Gatti’s Pizza Deal
Personal credit and financial history. The franchisor itself asks for good credit and background history, and lenders review credit, tax returns and a personal financial statement.
Net worth and liquidity. A project that starts above $2 million requires a meaningful cash injection and post-closing reserves. Lenders want to see that you can fund your share and still handle a slow opening period.
Industry and management experience. Restaurant experience is not required by the franchisor, but lenders give real weight to food service, entertainment or multi-unit management experience. A strong general manager hire can help a first-time owner.
Business plan and projections. Projections should model buffet traffic, party bookings, game revenue, food and labor costs, royalties and rent separately. Our article on writing a franchise business plan for an SBA loan walks through the structure lenders expect.
The FDD and franchise agreement. Lenders review the term, renewal, transfer rights, required remodels and the openings and closures shown in Item 20. See how lenders read the Franchise Disclosure Document.
Site and lease. A large-format FEC depends on visibility, parking, family density and lease terms long enough to amortize the build-out and games. Lenders typically want lease terms that cover the loan period.
Historical financials for resales. Expect to provide several years of profit and loss statements, tax returns and sales reports for an existing location.
Arcade, Buffet and Kitchen Equipment
Equipment intensity is what sets a Gatti’s Pizza FEC apart from a carryout pizza shop. Beyond the kitchen, owners finance a buffet line, party rooms and an arcade floor with redemption games, prize counters and card or token systems.
Games as an asset class. Arcade games wear and need replacement more often than ovens or walk-in coolers, so lenders may set different terms for them, and owners should plan a refresh budget. Ask the franchisor about game requirements and any replacement schedule. Equipment quotes tied to the franchisor’s specifications strengthen the loan request.
Multi-Unit Growth and Development Agreements
The franchisor’s growth focus on the Southeast and Midwest, and on markets the brand previously served, means some candidates will consider more than one location or an FEC paired with a DELCO.
Financing additional units. Once your first location has operating history, lenders can underwrite its cash flow alongside projections for the next. Many owners finance each location separately to match its timeline, then consolidate later. Learn how lenders approach multi-unit franchise financing.
Development schedules. If you sign a development agreement, review its opening deadlines and default provisions with your attorney and confirm your financing can support the schedule.
Real-World Scenarios
A first-time owner opening a small FEC. A former retail manager signs for a small-format FEC, hires an experienced general manager and uses an SBA 7(a) loan for build-out, equipment, games and working capital.
An existing owner adding a DELCO. An FEC owner adds a delivery and carryout unit across town. The lender underwrites the new unit using the FEC’s cash flow, and the owner finances the ovens and build-out with an equipment loan.
A buyer acquiring a resale. A buyer purchases an operating FEC from a retiring franchisee. The lender reviews three years of results, game revenue and the lease, and the buyer budgets for an arcade refresh soon after closing.
Gatti’s Pizza Franchise Loan Mistakes to Avoid
- Using an investment figure from a marketing page instead of the Item 7 table in your FDD
- Choosing a footprint before confirming which format the franchisor recommends for your market
- Underestimating the arcade budget or ignoring future game replacement
- Signing a lease too short to amortize the build-out and equipment
- Leaving too little working capital for pre-opening payroll and the ramp-up period
- Projecting buffet, party and game revenue as a single line instead of modeling each
For more pitfalls, read about the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Gatti’s Pizza Franchise
Step 1: Talk with the franchise development team. Confirm available markets, recommended formats and current financial qualifications.
Step 2: Apply and receive the FDD. Submit the franchise application and review the FDD, especially Items 5, 6, 7, 10, 17, 19 and 20, with a franchise attorney and accountant.
Step 3: Choose a format and site. Pick a format and identify sites that fit the franchisor’s demographic profile.
Step 4: Build your budget and projections. Gather contractor bids, game quotes and a lease proposal, then build monthly projections.
Step 5: Speak with a financing specialist. Decide whether a 7(a) loan, a 504 and 7(a) combination or conventional financing fits your project.
Step 6: Submit, close and open. Provide your financial statements, tax returns, franchise documents and project budget, then coordinate funding with construction draws, game delivery and training.
Gatti’s Pizza Franchise Loan FAQs
How much does it cost to open a Gatti’s Pizza franchise?
The franchisor’s published estimates for a single family entertainment center start above $2 million, and its pages show different ranges. A DELCO costs far less. Use the Item 7 table in the current FDD for the exact range.
What is the Gatti’s Pizza franchise fee?
The franchisor lists a $50,000 initial franchise fee for a family entertainment center and $25,000 for a delivery and carryout only location.
What royalty does Gatti’s Pizza charge?
The royalty and any marketing fund contribution are not published on the franchise website. Item 6 of the current FDD lists every recurring fee.
How much net worth or liquid capital do I need?
The franchise website does not publish minimums. It asks for business experience, good credit and the ability to fund the investment. Lenders will expect a cash injection and reserves sized to the project.
Can I get an SBA loan for a Gatti’s Pizza franchise?
Yes, the brand is listed on the SBA Franchise Directory under code S0717 with no additional notes, so it is eligible for SBA 7(a) and 504 financing, subject to lender approval.
Can I finance the arcade games separately?
Often, yes. Games, ovens, refrigeration and buffet equipment can be financed with equipment loans or leases, either alone or alongside an SBA loan.
Can I buy an existing Gatti’s Pizza?
Yes, if the franchisor approves the transfer. Lenders will review the location’s historical financials, lease, remaining franchise term and equipment condition.
Can a first-time business owner get a Gatti’s Pizza franchise loan?
Yes, if you meet the franchisor’s and the lender’s standards. A strong general manager and a detailed plan help.
Does Gatti’s Pizza offer financing?
The franchise website does not describe franchisor financing. Item 10 of the FDD discloses any financing the franchisor offers.
Does the FDD include financial performance information?
The franchisor references sales information in its franchise materials. Review Item 19 of the current FDD to see what it includes, and do not treat it as a promise of results.
Final Thoughts
A Gatti’s Pizza family entertainment center is a large, equipment-heavy project, and a Gatti’s Pizza franchise loan should reflect that. Owners who confirm their format early, build the budget from the FDD, plan for games and working capital and use the SBA listing well give themselves a solid path to opening day.
US Professional Funding helps franchise buyers and owners finance new locations, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
