Cannoli Kitchen Pizza
Cannoli Kitchen Pizza offers quick-service Italian-style food including pizza, pasta, and cannolis in franchised restaurants. Known for its unique menu, it requires a significant initial investment of $402,628 to $536,451. Operates in the fast-casual dining industry.
Cannoli Kitchen 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 Cannoli Kitchen Pizza franchise ranges from $402,628 to $536,451. This includes payments to the franchisor and may vary based on factors such as location, size of the restaurant, and how closely you follow the system's procedures [p.1].
What is the initial franchise fee?
The initial franchise fee varies depending on the specific circumstances. For a new Cannoli Kitchen Pizza franchise in good standing with affiliated brands, the lower amount of the initial franchise fee is $105,000 [p.31]. Generally, this fee is not refundable and is recognized as revenue when services required under the franchise agreement have been performed by the company [p.152], unless it's a successor agreement where no new initial franchise fee is due [p.135].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a weekly payment equal to 6% of Gross Revenues, due on the Tuesday of the following week [p.84]. Additionally, you must spend at least 1% of all gross revenues annually on local marketing activities such as Internet, mobile marketing, email campaigns, and more [p.42].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can generally transfer ownership of your franchise, but the franchisor has the right to refuse such a transfer for good cause [p.9]. Good cause includes factors like the franchisor's right of first refusal to purchase the franchise [p.9].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.170]. However, under Virginia Retail Franchising Act Section 13.1-564, a franchisor cannot cancel a franchise without reasonable cause. Additionally, termination is permitted for good cause, such as the failure of the franchisee to comply with lawful provisions of the franchise agreement and failing to cure such failures after receiving written notice and a reasonable opportunity to do so [p.9].
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?
Based on the excerpts provided, you do not have an exclusive right to develop Cannoli Kitchen Restaurants in your designated Development Area unless you agree to open and operate more than three restaurants. In that case, you would have exclusive rights within the Development Area, but these can be lost if you are in default of the development schedule [p.71].
What training and ongoing support does the franchisor provide?
The franchisor provides monthly training classes for new franchisees at their offices and a Cannoli Kitchen Pizza® restaurant in West Palm Beach, Florida. These classes are held throughout the entire calendar year 2024. Additionally, other restaurants may be designated as 'Certified Training Restaurants' in the future. For more detailed information on your rights and obligations regarding training, refer to Franchise Agreement Sections 7 and 8 [p.47].
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 can share actual records of existing outlets if requested by a prospective franchisee. Additionally, the franchisor may supplement the information provided in Item 19 with possible performance data at specific locations or under certain circumstances. However, the franchisor does not make any representations about future financial performance and does not authorize its employees to do so either orally or in writing [p.59, p.60].
What am I restricted to selling, and where must I buy supplies?
You are required to offer for sale only goods and services that the franchisor has approved and must offer all goods and services that they require. You have no limits on the franchisor's right to make changes to authorized goods or services [p.55]. For supplies, you may be restricted to buying or leasing items from the franchisor or a limited group of suppliers they designate, which could potentially result in higher costs than purchasing elsewhere [p.4].