Extreme Pita
Extreme Pita offers wrap-style hot and cold pita sandwiches, flat baked pitas, salads, and more. Known for its diverse menu options, this franchise operates in the quick-service restaurant sector.
About Extreme Pita
Extreme Pita is a Canadian-based fast-casual chain, owned by MTY Group. Headquartered in Richmond Hill, Ontario, the company has 15 locations throughout Canada and the United States.
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Extreme Pita franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an Extreme Pita Unit franchise ranges between $176,760 and $494,000, as stated on [p.1]. This range includes the costs that must or may be paid to the franchisor or its affiliates.
What is the initial franchise fee?
The initial franchise fee ranges from $69,500 to $152,100 and includes the Initial Franchise Fee, Grand Opening Marketing fee, Lease Review Fee (if any), and costs for equipment package, signs, and open uniform package purchased from Neptune Equipment. This amount does not include the Document Administration Fee, which is only required if an amendment to your franchise documents must be prepared [p.33].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of Gross Sales during the Initial Term and any Interim Period [p.199]. Advertising fees are collected by the company as an agent for promotional and advertising purposes, with excess contributions recorded in accounts payable or accrued liabilities [p.137, p.97].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide information about the length of the initial franchise agreement or the renewal terms beyond stating that a franchisor may refuse to renew without fairly compensating the franchisee under certain conditions [p.312].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can generally sell or transfer your franchise, but it requires good cause [p.310]. The franchisor must deal with you in 'good faith' during this process, which may include collecting transfer fees as specified in the agreement [p.320]. Additionally, the franchisor has the right to refuse transfers except for good cause and can exercise a right of first refusal to purchase the franchise [p.313].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.317]. Additionally, the franchise agreement allows the franchisor to change its manuals and business model without your consent, which might require additional investments or harm your franchise business [p.3]. However, termination cannot occur without reasonable cause as defined by Virginia Retail Franchising Act [p.319], and Illinois law may also affect conditions for termination [p.309].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on working capital requirements rather than net worth or liquid capital specifically for qualification as a franchisee.
Do I get an exclusive or protected territory?
No, you do not get an exclusive or protected territory. According to [p.175], the license is non-exclusive and does not provide territorial protection. Additionally, [p.62] states that you may face competition from other franchisees, Kahala Brands' own outlets, and other competitive brands controlled by the company.
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive training program that includes both classroom and on-the-job training, totaling approximately 80 hours. Classroom training covers subjects like New Owner Training using manuals, videos, and tests, while on-the-job training takes place in an Extreme Pita Restaurant with similar materials. The program is designed to be adjusted based on the franchisee's skill sets, and substitute instructors may also present certain portions of the training. Ongoing support includes maintaining standards for product quality and uniformity by requiring the purchase of approved products and services from specified suppliers.
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 does not make representations about future or past financial performance of company-owned or franchised outlets [p.75]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet's performance [p.75]. Additionally, the franchisor can disclose information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets under certain conditions as permitted by the FTC's Franchise Rule [p.74] [p.75].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the Extreme Pita Products and services designated by the franchisor. You must not offer or sell any other types of products or services [p.66]. Additionally, all supplies and equipment used in your Extreme Pita Store must be purchased from the franchisor or a vendor approved by them [p.3, p.66].