Foxs Pizza Den
Fox's Pizza Den offers pizza and other food items for pickup and delivery under its trademarked brand. Known for its franchise opportunities with an investment range of $108,800 to $236,000, it operates in the fast-casual dining industry.
Foxs Pizza Den franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Fox's Pizza Den franchise ranges from $108,800 to $236,000. [p.1]
What is the initial franchise fee?
The initial franchise fee is fifteen thousand dollars ($15,000.00) and it is fully earned by the franchisor at the time the Franchise Agreement is signed; this payment is not refundable under any circumstances. [p.8, p.53]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is $500 per month during the initial five-year term, secured by a non-interest-bearing promissory note. Upon renewal, this increases to $600 per month. These fees are due on the 10th day of each month and are non-refundable [p.14, p.53]. Advertising fees are mandatory minimum payments regardless of sales levels [p.4], but specific amounts are not detailed in these excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's term length isn't specified in these excerpts. However, you have the right to enter into a new franchise agreement for one additional five-year term upon the expiration of the current term, subject to the terms and conditions outlined in the agreement [p.50].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer ownership of your franchise, but the franchisor may refuse to permit such transfers for good cause. Good cause includes factors like the franchisor's right of first refusal to purchase the franchise [p.155].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a failure by the franchisee to comply with lawful provisions of the franchise agreement and such failure is not cured within a reasonable time, which cannot exceed 30 days [p.155]. Additionally, termination can occur on any grounds available by law [p.161], but under Virginia law, termination without reasonable cause is unlawful [p.162].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific financial requirements such as net worth or liquid capital needed for qualification as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands controlled by the company [p.29]. However, you are granted a protected territory where you have the right to establish and operate one Fox's Pizza Den outlet, subject to approval based on specific criteria [p.29].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training fees due upon execution of the franchise agreement, which are recognized when the training concludes and the retail store opens [p.121]. Additionally, the franchisor may use current or former franchisee owners as instructors for training new owners based on their experience [p.28]. Ongoing support includes the option for on-site remedial training upon request, with Franchisees paying per diem fees and travel costs for such assistance [p.7.4].
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 provide actual records of an existing outlet if you are purchasing one, but they cannot make representations about future financial performance or past financial performance of company-owned or franchised outlets. Any other financial performance information received should be reported to specified entities as outlined in the FDD [p.38].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only those products and services that are part of the System, as approved by the franchisor. You may not sell any products outside of your Franchised Business location or through other channels such as the internet, dealers, or distributors [p.32]. For supplies, you must purchase equipment, fixtures, furnishings, ingredients, supplies, and services from the franchisor's designated suppliers or in accordance with their specifications [p.19].