Boston Pizza
Boston Pizza offers gourmet pizza and casual dining with sports bar amenities, ideal for family gatherings and sports fans. Known for its wide menu options and area development opportunities, Boston Pizza operates in the casual dining restaurant sector.
About Boston Pizza
Boston Pizza International Inc., doing business as Boston Pizza is a Canadian multinational restaurant chain that owns and franchises locations in Canada, the United States and Mexico.
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Boston Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Boston's Restaurant franchised business is estimated between $1,030,500 and $3,306,375. This includes an initial franchise fee of $85,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee for a single Boston's Business is $50,000 [p.13]. This fee covers pre-opening assistance and offsets some of the franchisor’s recruitment expenses [p.13]. It is fully earned once paid and is non-refundable [p.85].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Gross Sales, due on or before Thursday of each week [p.86]. Additionally, franchisees must spend 1% of Gross Sales per month on local advertising to meet the Local Advertising Requirement [p.96].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is 10 years [p.82]. You may enter into a maximum of two successor franchise agreements, each for five years, provided you meet the conditions for renewal specified in the FDD [p.82].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of your franchise except for good cause. Good cause includes but is not limited to unspecified reasons [p.5]. Additionally, you must request the transferee be provided with the current form of franchise disclosure document and have them sign the then-current form of franchise agreement [p.104]. This transfer must comply with applicable laws governing the offer and sale of franchises, and you or your owners must satisfy any other conditions reasonably required by the franchisor for approval [p.105].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.198]. Additionally, if there is a cross-default with another agreement between the franchisee and the franchisor or an affiliate, this could also lead to termination [p.116]. However, termination without 'reasonable cause' as defined by Virginia law may not be enforceable [p.201].
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?
No, you do not receive an exclusive territory. Your Franchise Territory is protected based on a one-mile radius around your Boston's Business location, but it does not guarantee exclusivity from competition from other franchisees, outlets owned by the company, or other competitive brands that the company controls [p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training at no cost for up to seven people who must attend simultaneously before opening the Boston's Business [p.36]. They also require attendance at national or regional meetings/conferences, where franchisees are responsible for their own travel and expenses [p.38]. Remedial training may be required if compliance issues arise, with associated costs [p.38]. Additionally, the franchisor may develop proprietary software or technology that must be licensed by franchisees, which comes with licensing, support, and maintenance fees [p.102].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 24 franchised Boston's Businesses, with no affiliate-owned Boston's Businesses. This information is detailed in [p.51]. However, the number of outlets that have closed or been terminated during a specific one-year period is not specified in the provided excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information based on actual records of existing outlets if purchased. Additionally, they may supplement the information provided in Item 19 under certain circumstances, but they do not make representations about a franchisee's future financial performance or past financial performance of company-owned or franchised outlets [p.52].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only those products and services authorized by the franchisor, which may vary based on operating season and geographic location [p.45]. You must purchase or lease all specified items according to the Operations Manual from suppliers designated or approved by the franchisor [p.98], though in some cases you may choose vendors that meet your system's specifications if no specific supplier is required [p.98].