BUSINESS

MODEL
Contents
About Mountain Mike’s Pizza............................................................ 3

How We Stand Up Against The Competition ...................................... 4

Franchise Support .......................................................................... 5

The Pizza Industry........................................................................... 6

Where We Fit In The Industry ........................................................... 7

Who We’re Looking For ................................................................... 8

Startup Costs.................................................................................. 9

Revenue....................................................................................... 11

Next Steps....................................................................................13
 About
MOUNTAIN
MIKE’S PIZZA
Since 1978, the success of Mountain Mike’s Pizza has been
built on simple ingredients: great food, great experiences
for families, strong community ties – especially with local
sports teams — and franchisee satisfaction. We have grown
from a beloved regional brand to an emerging powerhouse
“The most satisfying thing about being a pizza franchise in the Western U.S.

Mountain Mike’s Pizza franchise owner is Mountain Mike’s Pizza includes dozens of multi-unit

the limitless ability to grow my business and
brand locally,”
Luis Seita, Franchise Owner, Northern California
franchisees who continue to invest in new restaurants,
buoyed by the success they have enjoyed with the brand.
“The most satisfying thing about being a Mountain Mike’s
Pizza franchise owner is the limitless ability to grow my
business and brand locally,” says Luis Seita, who owns three
Mountain Mike’s locations in Northern California. “Pizza is a
community food, and when you have a good product and a
savvy business model, business is good.”

How good?
We have strong unit-level economics, with an AUV in 2020
of $1.4 million for the top 25% of our restaurants. And after
our best year ever in 2020, with record-breaking sales over
the previous (non-pandemic) year, we headed out of the
gate in 2021 with double-digit sales increases and multi-
unit expansion deals in new territories.

With an initial investment of $225,800 to $596,000,

Mountain Mike’s offers franchise buyers a good, scalable
investment and solid business model with a long-stable
brand in the booming $46 billion pizza industry.

MOUNTAIN MIKE’S PIZZA BUSINESS MODEL 3

 HOW WE STAND UP
against the competition
While other pizza franchises concentrate solely on carryout and delivery, and the
majority of Mountain Mike’s sales come from those divisions, we still capture a
healthy percentage of our sales from something you don’t see as much anymore:
dine-in.

The families who grew up with us in the Bay Area and other parts of Northern
California are now bringing their families in to recapture those experiences. The
grown-ups can watch the game on a big-screen with a glass of beer or wine while the
kids play in the game room. Mountain Mike’s has so much wide-open territory in L.A.
and the rest of Southern California, we’re excited about the opportunity to introduce
our brand to a whole new generation of loyal fans.

Now, we’re building on the brand’s success by launching new initiatives to power
growth into the future. Our over 240-unit franchise is primed to continue expansion
throughout the Western U.S., in our home state of California as well as Arizona,
Colorado, Idaho, New Mexico, Nevada, Texas, Utah, Oregon and Washington.

“With our active development into additional Western states beyond our home
base of California with the help of new franchise partners, our existing franchisees
continuing to open more restaurants, and the development and launch of new
technologies to provide added support for our franchise partners while enhancing
the guest experience, there has never been a better time to join the Mountain Mike’s
Pizza family!” says Ed St. Geme, one of our two principal owners and Co-CEO of
Mountain Mike’s.

Mountain Mike’s Pizza franchise has the operational experience, the franchising
expertise and the quality product that together make for a winning combination. We
want seasoned franchisees and development partners who are passionate about
capitalizing on the thriving pizza industry.

MOUNTAIN MIKE’S PIZZA BUSINESS MODEL 4

 FRANCHISE
Support
Mountain Mike’s has been recognized with many leading industry awards and
rankings for its excellent franchisee support and the strength of the overall franchise
opportunity. In 2021, we were named among franchises Most Likely to Make You
Rich by Yahoo!Finance.
Mountain Mike’s ranked No. 6 in the highly competitive pizza category by
Entrepreneur Magazine in its highly coveted 2021 Franchise 500® List along with
being named one of the Hottest Franchise Opportunities of 2021. Additionally, the
brand was ranked No. 21 on the list of Top 50 Pizza Chains in PMQ’s Pizza Power
Report 2021, and No. 4 on the list of fastest growing sales per unit.
MOUNTAIN MIKE’S PIZZA BUSINESS MODEL
Mountain Mike’s has a dedicated leadership team that stays involved and is
passionate about our franchise of 240+ units. We put franchisees first so they can put
our guests first. Those guests craved their favorite Mountain Mike’s pizza more than
ever during lockdown, and our safe and efficient delivery and carryout services were
able to meet increased demand.
“We continue to be amazed by the strength and resilience of our franchisees and
leadership team. After performing so well throughout 2020, which has accelerated
now in early 2021, our brand is firmly established as one of the fastest growing and
most exciting pizza concepts in the country,” says Chris Britt, one of our two principal
owners and Co-CEO of Mountain Mike’s Pizza.
5
 The
PIZZA INDUSTRY
America’s love for pizza just keeps growing stronger. The $46 billion pizza
industry is expected to top $50 billion by 2023. Pizza is the comfort food
we all turn to, whether we’re looking to feed the family quickly, celebrate a
big win or settle in with friends for a Netflix binge.

An estimated 83% of us eat pizza at least once a month, according to food

industry analyst Technomic, and 30% of us are consuming pizza weekly.
It’s our go-to stranded-on-a-desert-island food, our celebration food, our
Super Bowl food. It’s got universal appeal, and though its roots are Italian,
Americans have clearly claimed it as our own.

MOUNTAIN MIKE’S PIZZA BUSINESS MODEL 6

 WHERE WE FIT
in the industry
Mountain Mike’s occupies a premium brand position within
the industry, consistently serving up premium quality
pizza at a higher price point. We don’t participate in the
pizza price wars with chains like Domino’s, Little Caesars,
Papa John’s and Pizza Hut, which compete on value, like
promotions for a $10 large. Mountain Mike’s is a family
style, sit-down pizza restaurant which serves high quality,
great tasting pizza. We compete and win on the quality of
our product and atmosphere in our restaurants.

Families have always flocked to Mountain Mike’s not only

for our pizza, but for our arcade games, party rooms,
craft beer and wine for the parents and big-screen TVs
throughout to catch the latest games. Yet a significant
portion of our sales comes from delivery and carryout
which is an advantage in an age when people are looking
for simplicity and convenience.

Mountain Mike’s captures the best of both worlds. We are

the place where people can still gather to celebrate, where
the soccer coach can bring the team after the game, or the
place where people know they can count on consistent
quality in their delivery or carryout pizza.

MOUNTAIN MIKE’S PIZZA BUSINESS MODEL 7

 WHO WE’RE
Looking For
“Our most successful franchisees are the folks who run that
restaurant like it’s a community establishment, so they’re
engaged in the community, the sports teams, the churches,
the social clubs. They know that they have to be out there,
engaging, connecting, and being a part of the community
framework in order to grow their business,” says President
and COO Jim Metevier.

Ideally, we’re seeking candidates with:

• $100,000 in liquid assets

• $300,000 net worth
• Restaurant management experience
• Restaurant industry experience
• Passion for serving communities

A traditional Mountain Mike’s Pizza restaurant is between

2,500-4,000 square feet. We provide you with a floor
plan specifically designed for your space, and you will
typically need 10-15 part-time employees. Owners can also
hire a manager, but many franchisees manage the stores
themselves.

MOUNTAIN MIKE’S PIZZA BUSINESS MODEL 8

 STARTUP COSTS
Startup costs for Mountain Mike’s Pizza grant you access to site selection experts, an updated design, modern equipment that’s already been proven, and the invaluable
knowledge of what works and what doesn’t. That’s a lot of security wrapped up in a startup package backed by one of the most experienced franchisors in the pizza business.

Our average startup costs range between $225,800 and $596,000, depending on the type of location you choose, according to Item 7 in our latest Franchise Disclosure
Document (FDD). Review the chart below.

Item 7: Estimated Initial Investment

Method of
Type of Expenditure Amount When Due To Whom Payment is to be Made
Payment

Initial Franchise Fee (1) $15,000 - $30,000 Lump Sum On signing Franchise Agreement Mountain Mike’s

Leasehold Improvements (2) $50,000 - $200,000 As Agreed As Incurred Selected/Approved Contractors

Architectural Engineering Fees (2) $10,000 - $18,000 As Agreed As Incurred Professionals

Furniture, Fixtures and Equipment (3) $60,000 - $150,000 As Agreed As Incurred Approved Vendors

Signage $4,000 - $12,000 As Agreed As Incurred Approved Vendors

POS/Electronic Information System (4) $6,500 - $18,000 As Agreed As Incurred POS and Other Approved Vendors

Three Months’ Rent (5) $12,000 - $40,000 Lump Sum As specified in lease or sublease Landlord

Security Deposit (5) $4,000 - $12,000 Lump Sum On signing lease or sublease Landlord

Opening Inventory and Supplies (6) $10,000 - $14,000 As Agreed As Incurred Approved Vendors

Marketing Fee $4,000 Lump Sum On signing Franchise Agreement Mountain Mike’s

Decor Package (7) $4,000 - $9,000 As Agreed As Incurred Approved Vendors

Traning Expensies (for all attendees) $1,300 - $4,000 As Incurred As Incurred Working Capital Reserves

Miscellaneous Operating Costs (8) $20,000 - $40,000 As Incurred As Incurred Working Capital Reserves

Additional Funds - 3 months (9) $25,000 - $45,000 As Incurred As Incurred Working Capital Reserves

Total Estimated Initial Investment (excl. real estate purchase costs (10)* $225,800 - $596,000

* You will not incur most of these costs if you are renewing your franchise because your Restaurant already is open. However, you must make certain upgrades, modifications, and
improvements at your Restaurant to meet MMP’s then current standards. Your costs will depend on your Restaurant’s current condition.
Except for the security deposit, no expense in the table above is refundable.

MOUNTAIN MIKE’S PIZZA BUSINESS MODEL 9

 Explanatory Notes
1. MMP describes the initial franchise fee in Item 5. If you sign our Development Agreement Rider to the
Franchise Agreement agreeing to develop a minimum of 3 Mountain Mike’s® Pizza Restaurants, then
we will reduce the amount of Initial Franchise Fee to $15,000 or $7,500 (as applicable, see Item 5) for
the second Mountain Mike’s® Pizza Restaurant, and to $7,500 for the third Mountain Mike’s® Pizza
Restaurant and each additional Mountain Mike’s® Pizza Restaurant you agree to develop under the
Development Agreement Rider.
2. The Restaurant’s premises typically is in an end-cap or in-line location in a shopping center. A
Restaurant is approximately 2,500 to 4,000 square feet. Leasehold improvement costs, which
include floor covering, wall treatment, counters, ceilings, painting, window coverings, electrical,
carpentry, and similar work, and contractor’s fees, depend on the condition, location, and size of the
premises; the demand for the premises among prospective lessees; whether the premises previously
was used as a restaurant; the build-out required to make the premises suitable for your Restaurant;
and any construction or other allowances the landlord grants. You must obtain professional
architectural and engineering drawings for your Restaurant.
You may use one of our preferred architects or another architect we approve to prepare a preliminary
floor plan, store design color renderings, and construction drawings. We anticipate that you will
rent the premises for the Restaurant, but you may purchase the property for your Restaurant. The
estimate in the table above does not include the cost of constructing the building if you purchase the
property. You may also receive an allowance, credit, rebate, or rent abatement from your landlord to
offset the remodeling and build-out costs you will incur to conform the Premises for the Restaurant.
Your leasehold improvement costs may be offset if your landlord provides such an allowance, credit,
rebate, or rent abatement.
3. This item includes sinks, refrigerators, ovens, stoves, ventilation systems, display cases, tables, chairs,
booths, utensils, a phone system and facsimile machine, and office supplies. The range depends on
whether any used equipment remains at the premises you take over.
4. MMP describes the POS/electronic information system in Item 11.
MOUNTAIN MIKE’S PIZZA BUSINESS MODEL
5. The rent and security deposit depend on the size, condition, and location of the premises and the
demand for the premises among prospective lessees.
6. This figure is for food products, materials, smallwares, and supplies necessary to open the Restaurant
under MMP’s required standards and specifications.
7. This item covers interior signage, pictures, and other decor items.
8. This item covers miscellaneous opening costs and expenses, including installing telephones;
deposits for gas, electricity, and similar items; business licenses (including beer and wine); legal and
accounting expenses; and insurance premiums.
9. This item estimates your initial start-up expenses (other than the items identified separately in the
table). These expenses include payroll costs but not any draw or salary for you or your owners.
These figures are estimates, and it is possible you will need additional working capital during the
first 3 months you operate your Restaurant and for a longer time period after that. This 3-month
period is not intended, and should not be interpreted, to identify a point at which your Restaurant
will break even. Your costs depend on how much you follow MMP’s methods and procedures; your
management skill, experience, and business acumen; local economic conditions; the local market
for your products and services; the prevailing wage rate; competition; and the sales level reached
during the initial period. MMP relied on its principals’ many years of experience franchising Mountain
Mike’s® Pizza Restaurants to compile this Additional Funds estimate.
10. You should review these figures carefully with a business advisor before deciding to acquire the
franchise. MMP does not offer financing directly or indirectly for any part of the initial investment. The
availability and terms of financing will depend on many factors, including the availability of financing
generally, your creditworthiness and collateral, and lending policies of the financial institutions from
which you request a loan.
10
 REVENUE
Our AUV for 2020 for the top 25% of our Restaurants was $1.4 million. Same-store Table 1: Range of Gross Sales
sales increased and we broke all previous sales records. See Item 19 below from our Restaurants Operating for the Entire 2020 Calendar Year
Franchise Disclosure Document.
The following table shows the ranges of Gross Sales for the 210 Mountain Mike’s
Item 19: Financial Performance Representations Pizza® Restaurants operating for the entire calendar year ending 2020 and the
number of Mountain Mike’s Pizza® Restaurants.
The FTC’s Franchise Rule permits a franchisor to provide information about the actual
or potential financial performance of its franchised and/or franchisor-owned outlets,
# of Restaurants within % of Restaurants within
if there is a reasonable basis for the information, and if the information is included in Range of Gross Sales for 2020
Range of Gross Sales Range of Gross Sales
the disclosure document.
Greater than $1,500,000 15 7%

Financial performance information that differs from that included in Item 19 may be $1,250,000 to $1,500,000 19 9%
given only if: (1) a franchisor provides the actual records of an existing outlet you
are considering buying; or (2) a franchisor supplements the information provided in $1,000,000 to $1,250,000 43 20%

this Item 19, for example, by providing information about possible performance at a
$750,000 - $1,000,000 67 32%
particular location or under particular circumstances.
$500,000 to $750,000 58 28%
On December 31, 2020, there were 228 Mountain Mike’s Pizza Restaurants open
®
Below $500,000 8 4%
and in operation. Of those 228 Mountain Mike’s® Pizza Restaurants, 210 were open
and in continuous operation during the entire calendar year ending December 31, Total 210 100%
2020. The analysis below is based solely on the yearly gross sales for those 198
Mountain Mike’s® Pizza Restaurants for 2020.

The following tables refer to “Gross Sales”. “Gross Sales” means all revenue from
operating a Mountain Mike’s® Pizza Restaurant (including proceeds of business
interruption insurance, all rental income and the amounts charged to customers
for menu items delivered by third party delivery service providers); excluding taxes
collected from customers and customer refunds and credits.

MOUNTAIN MIKE’S PIZZA BUSINESS MODEL 11

 Table 2: Systemwide Gross Sales # of Restaurants 210
Restaurants Operating for the Entire 2020 Calendar Year
2020 Average Gross Sales $946,727
The following table shows the ranges of Gross Sales for the 210 Mountain Mike’s
Highest Gross Sales $2,208,198
Pizza® Restaurants operating for the entire calendar year ending 2020 and the
number of Mountain Mike’s Pizza® Restaurants. Lowest Gross Sales $356,848

# of Restaurants exceeding Average Gross Sales 91

% of Restaurants exceeding Average Gross Sales 43

Median Gross Sales $865,713

Table 3: Systemwide Gross Sales by Top and Bottom Quartile of

Restaurants Operating for the Entire 2020 Calendar Year

The following table provides average Gross Sales for the top and bottom quartiles of Mountain Mike’s Pizza® Restaurants.

Number above
Quartile Restaurant Count Highest Gross Sales Lowest Gross Sales Average Gross Sales % above Average Median Gross Sales
Average

Top 52 $2,208,198 $1,138,525 $1,416,645 19 37% $1,352,758

Bottom 52 $717,806 $356,848 $856,734 27 52% $593,142

General Notes
Some outlets have earned this amount. Your individual results may differ. There is no assurance you’ll earn These financial performance representations do not include information concerning net profits that may be
as much. realized in the operation of a Mountain Mike’s® Pizza Restaurant.

We calculated the data above based on unaudited sales reports provided to us by Mountain Mike’s®
Pizza Restaurant franchisees. We have not audited nor independently verified this information. We will
make available to you, upon reasonable request, written substantiation of the date used in preparing this
Item 19. However, we will not disclose the identity or sales data of any particular Mountain Mike’s® Pizza
Restaurant franchisee without the consent of that franchisee, except to any applicable state registration
authorities.
Other than the financial performance representations above, MMP does not make any representations
about a franchisee’s future financial performance or the past financial performance of company-owned
or franchised outlets. MMP also does not authorize its employees or representatives to make any such
representations either orally or in writing. If you are purchasing an existing outlet, however, MMP
may provide you with the actual records of that outlet. If you receive any other financial performance
information or projections of your future income, you should report it to the franchisor’s management by
contacting Chris L. Britt, 26 Corporate Plaza, Suite 180, Newport Beach, CA 92660, (949) 438-1204, the
Federal Trade Commission, and the appropriate state regulatory state agencies.

MOUNTAIN MIKE’S PIZZA BUSINESS MODEL 12

 NEXT STEP ONE
REQUEST FOR CONSIDERATION
Submit a form for consideration on our website, mountainmikesfranchise.

STEPS
com. Upon preliminary approval, we will contact you to schedule a phone
conversation.

STEP TWO
FDD REVIEW
After you receive and review the Franchise Disclosure Document, and
mutual consent is established and you will sign the Mountain Mike’s
franchise agreement and submit your $30,000 franchise fee.

STEP THREE
SITE SELECTION
Our real estate team will provide general site selection criteria and
guidance as you select a suitable site for your restaurant.

STEP FOUR
TRAINING
When your site is nearing completion, you will participate in our extensive
training program along with your designated manager.

STEP FIVE
OPEN YOUR MOUNTAIN MIKE’S PIZZA
With training and building/renovations completed, it’s time to turn on the
open sign!

MOUNTAIN MIKE’S PIZZA BUSINESS MODEL 13

MOUNTAINMIKESFRANCHISE.COM