California Pizza Kitchen
California Pizza Kitchen offers pizza and other Mediterranean-inspired dishes in casual dining restaurants; known for creative pizzas like chicken alfredo and BBQ pulled pork; part of the quick-service restaurant industry.
California Pizza Kitchen franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a new CPK Restaurant ranges from $1,425,000 to $5,375,000, depending on whether you are opening in a traditional facility or at a non-traditional facility. This amount includes $68,000 to $73,000 that is payable to the company. [p.1]
What is the initial franchise fee?
The initial franchise fee is $50,000 and it is a nonrefundable payment due upon execution of the Franchise Agreement [p.12, p.103]. This fee constitutes part of the franchisor's general operating funds as they see fit to use [p.64].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is charged at a rate of up to 7% of the gross sales of each franchised location [p.154]. As for advertising fees, franchisees must spend or contribute for advertising as specified in Section 8 of the FDD, though the exact amount is not detailed in these excerpts [p.103] [p.112].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. Regarding renewal, if you are eligible and choose to remain a franchisee for the first Renewal Term, you must sign CPK's then-current form of renewal franchise agreement, which may include higher fees and other materially different terms from the original agreement [p.103].
Can I sell or transfer my franchise, and what does that require?
According to [p.61], the franchisor can refuse to permit a transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified reasons, which may allow the franchisor discretion in approving transfers.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD sections discuss working capital estimates, franchise approval conditions, and renewal requirements but do not detail specific net worth or liquid capital financial qualifications for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to the FDD excerpts, you may face competition from other franchisees, outlets owned by the company, and other competitive brands controlled by them [p.41, p.57]. The company retains the right to operate or license others to operate CPK Restaurants in various locations, including within your protected territory [p.40].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial Training Program that includes methods, techniques, and systems associated with operating a CPK Restaurant [p.208]. For the first new CPK Restaurant, a new store opening team (NSO Team) is sent to assist in training personnel and opening the restaurant [p.36]. Ongoing support includes requiring franchisees to conduct training programs for their employees as specified by the franchisor [p.105], although there is flexibility for franchisees to provide self-training or third-party training upon request [p.4, p.105].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing CPK Restaurant if you are purchasing one, but they do not make any representations about a franchisee's future financial performance or the past financial performance of Company-Operated or franchised restaurants. Any other financial performance information received should be reported to the franchisor’s management or relevant regulatory agencies as specified [p.51].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling Products that meet the franchisor's current quality standards and menu items as specified in the Operations Manual. You may not deviate from these requirements [p.46]. For supplies, you must purchase or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3]. This isn't specified in the excerpts for the exact location to buy supplies, but it implies that you should obtain necessary equipment and products through approved and designated suppliers as required for catering and delivery services [p.28].