Cottage Inn Pizza
Cottage Inn Pizza offers a variety of pizza, sandwiches, salads, and other products in dine-in, carryout, and delivery formats. Known for its wide menu options, including potential expansion to pubs offering beer and wine. Operates in the quick-service restaurant industry.
Cottage Inn 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 Cottage Inn Pizza franchise ranges from $216,000 to $500,000. For a Cottage Inn Pizza & Pub, the range is between $424,000 and $785,000. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of store: $25,000 for Cottage Inn Store or Cottage Inn Pizza Express Store, and $30,000 for Cottage Inn Pizza & Pub Store. This fee must be paid in full before a Franchise Agreement is issued and is nonrefundable. [p.10, p.85]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of the Store's weekly Gross Revenues, with a reduced rate of five percent (5%) in Michigan and Ohio [p.85]. Additionally, there are separate advertising fees that may be up to six percent (6%) of your Gross Revenue, though this can be increased upon 90 days written notice [p.86].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not contain information about the duration of the initial franchise agreement or the renewal process.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise only for good cause as defined by the franchisor. The franchisor may also exercise a right of first refusal to purchase the franchise instead. [p.138, p.175]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.144], and also if the franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time, which cannot exceed 30 days [p.138]. This isn't specified in the excerpts for all possible legal grounds, but termination is allowed on grounds available by law [p.177]. Additionally, Illinois-specific laws may further affect these conditions [p.172].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide information on specific financial requirements such as net worth or liquid capital needed to qualify for a franchise.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. The FDD indicates that you may face competition from other franchisees, company-owned stores, and other competitive businesses [p.35]. Your operating area is defined by an Area of Primary Responsibility which can be adjusted based on the approval of the franchisor, and even within this area, you are not guaranteed exclusivity or protection against competition [p.34-35].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for franchisees, which is mandatory and occurs predominantly at an operating Cottage Inn Store with occasional sessions at their offices in Ann Arbor, Michigan [p.33]. This initial training lasts a minimum of six weeks and must be completed no later than four weeks before the store opens [p.33]. Additionally, the franchisor agrees to provide ongoing management assistance as part of the terms of the licensee agreement [p.64]. Ongoing support may include attendance at mandatory conferences held in Michigan, though not more than one per year [p.83].
How many franchised outlets are there, and how many have closed or been terminated?
The number of franchised outlets is not specified in the excerpts. According to [p.46], the 'Total' column in Exhibit 2 may exceed the number of outlets affected due to multiple events impacting the same outlet, but the exact numbers are not provided.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor may provide financial performance information. According to [p.42], this can include actual records from existing outlets that you are considering purchasing, or it can supplement the information provided in Item 19 by offering details about potential performance at a specific location under certain conditions. However, [p.44] notes that these figures should not be considered as guarantees of future sales, profits, or earnings for any franchisee.
What am I restricted to selling, and where must I buy supplies?
You are required to buy certain equipment and signs from either the company or third-party vendors before opening [p.10]. For ongoing operations, you must purchase food items, employee uniforms, and paper products from the company's distribution affiliate unless they do not service your area, in which case you can use approved third-party suppliers [p.10]. There are no restrictions on what you can sell, but you cannot deliver outside your Area of Primary Responsibility without prior written consent [p.34].