Bellacinos
Bellacino's Pizza & Grinders offers pizza, grinders, salads, and soft drinks in sit-down or take-out settings. Known for its variety of Italian-inspired foods, this franchise operates in the quick-service restaurant sector.
Bellacinos franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Bellacino's Pizza & Grinders franchised restaurant ranges from $267,500 to $409,390 as of the information provided [p.1]. This range includes the $30,000 initial franchise fee mentioned in [p.13].
What is the initial franchise fee?
The initial franchise fee is $30,000 for the first restaurant [p.128]. For additional restaurants under an Area Development agreement, a non-refundable exclusive territory fee of up to $3,000 per additional restaurant is required, which applies towards subsequent single unit franchise fees [p.9, p.10].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is payable as set forth in Section 6.1, and it includes a marketing fund contribution. This isn't specified in the excerpts regarding the exact percentage or amount of these fees.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide details about the duration of the initial franchise agreement or the renewal process beyond stating conditions under which the franchisor may choose not to renew [p.100].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires prior notice and approval from the franchisor. According to [p.138], you must give written notice 15 days before the proposed date of assignment or transfer to an owned or controlled corporation of yours. The transfer will not be valid until the franchisor receives legal documents deemed necessary by its counsel, and Franchisor consents in writing. [p.139] also states that any attempted assignment or transfer without compliance with these requirements will be void.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if there is a default by the franchisee that does not constitute 'reasonable cause' as defined in the Virginia Retail Franchising Act or Virginia law [p.149]. Additionally, the franchisor has the option to terminate the agreement if you do not open the restaurant within twelve months from the effective date of the Agreement [p.99].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you will have an exclusive or protected territory as specified in the Franchise Agreement. The size of your protected territory depends on the geographic area where you plan to open your Restaurant [p.25]. Additionally, if you sign an Area Development Agreement, it will specify a Development Area within which you may locate potential sites for Bellacino's Pizza and Grinders Restaurants, subject to approval [p.27].
What training and ongoing support does the franchisor provide?
The franchisor provides initial offsite training before the restaurant opens, which includes a program lasting up to eleven days. This training must be completed to their satisfaction, and while they supply materials like the Operations Manuals, any travel, living expenses, and compensation for participants are the franchisee's responsibility [p.106]. For ongoing support, managers need to attend scheduled training and marketing development meetings at least 75% of the time each year, with the franchisor covering instruction and training materials but not other related costs [p.107].
How many franchised outlets are there, and how many have closed or been terminated?
As of March 26, 2022, there were 134 franchises sold since 1995. Out of these, 81 have either closed permanently or been terminated, while 54 remain open, along with 1 future opening [p.47].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if you are purchasing one, but they do not make any representations about a franchisee's future financial performance or past performance of company-owned or franchised outlets. Additionally, they do not authorize their employees or representatives to make such representations either orally or in writing [p.35].
What am I restricted to selling, and where must I buy supplies?
You must sell only those products approved or specified by the franchisor [p.31]. Additionally, you must use ingredients, supplies, and materials that conform to the specifications and quality standards established by the franchisor [p.108], which may require purchasing from them or approved suppliers [p.108].