Extreme Pizza
Extreme Pizza offers franchised restaurants serving pizza and other foods with an energetic atmosphere. Known for its lively ambiance and varied menu options, it operates in the quick-service restaurant sector.
About Extreme Pizza
Extreme Pizza, Inc. is a privately held restaurant franchise chain specializing in conventional and California-style pizza, founded by Todd Parent and Michael Pastor in 1994 in San Francisco, California. The chain currently includes over 30 locations in the United States; a previous location in Ireland has now closed. 24 franchises are located in Central California. Others are present in Boise, Idaho; McAllen, Texas; Clearwater Beach, Florida; Grosse Pointe, Michigan; Wantage, New Jersey; and Charlottesville and Henrico, Virginia. Entrepreneur Ernest Harris has recently brought the franchise to Northern Virginia, opening locations in Pentagon City and Arlington County. The company primarily sells pizza; other menu items include calzones, sandwiches, and salads.
Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)
Extreme Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operating a single Franchised Restaurant ranges from $248,300 to $579,450. This includes the $30,000 initial franchise fee payable before opening [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000 for a single Franchised Restaurant, with a 25% discount available for veterans. [p.10]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of gross sales [p.91, p.77]. Additionally, you must contribute up to 1% of your gross sales weekly to the Extreme Pizza Advertising and Development Fund for advertising and public relations programs [p.30, p.4, p.122].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in these excerpts. However, the franchise agreement may allow the franchisor to refuse renewal without fairly compensating you, provided certain conditions are met, such as a term less than 5 years and specific restrictions on continuing your business after expiration [p.210].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, but it is subject to good cause as determined by the franchisor [p.210]. Additionally, a transfer fee equal to 25% of the current franchise fee must be paid, which is in addition to any initial fees required from the transferee [p.16].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure within a reasonable time frame, not exceeding 30 days [p.210]. Additionally, the franchisor may terminate the agreement on any grounds available by law [p.214].
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 requirements for franchisees and area developers but do not detail specific net worth or liquid capital qualifications for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You have a protected area where the franchisor will not establish another franchisee's restaurant, but you may face competition from other franchisees, outlets owned by the franchisor, or other competitive brands [p.34, p.35].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training before opening [p.28], additional training programs and refresher courses upon significant changes to the system or at the discretion of the franchisor [p.108, p.119]. These trainings cover various operational aspects such as management techniques, recipes, cooking procedures, marketing, sanitation, labor employment, and quality maintenance [p.119]. The franchisor also offers ongoing support for new managers after initial training or additional training programs upon request [p.16], though the franchisee is responsible for travel, lodging, meals, and other related expenses during these trainings [p.108, p.119].
How many franchised outlets are there, and how many have closed or been terminated?
There are currently 21 franchised restaurants [p.56], but one company-owned store was closed at the end of 2020 and is projected to reopen in 2021 after extensive remodeling [p.89]. This isn't specified in the excerpts regarding terminations or closures beyond this single instance.
Does the franchisor share any financial performance or earnings information?
The franchisor, OOC, Inc., does not make any financial performance representations other than the one provided in Item 19. They do not authorize their employees or representatives to make such representations either orally or in writing [p.57]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.57].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products and services that the franchisor has approved [p.40]. 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 supply sources beyond equipment, signs, fixtures, opening inventory, and supplies [p.26], so it's unclear if there are additional restrictions on where you must buy all other supplies.