Freshslice Pizza
Freshslice Pizza offers dine-in, carry-out, and delivery services with reasonably priced pizza in a unique atmosphere. Known for its franchising opportunities, it operates in the quick-service restaurant sector.
Freshslice 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 FRESHSLICE PIZZA franchised business ranges from $235,490 to $510,950. This range includes $55,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is $55,000 plus applicable taxes for each individual Freshslice Pizza Business, payable in full upon signing of the Franchise Agreement. This amount includes a training fee of $10,000 for up to two people to attend the initial evaluation and training program, which must be completed before opening the business. [p.16, p.70]
What are the ongoing royalty and advertising fees?
The ongoing royalty rate may vary, potentially being higher than specified in the original agreement [p.69, p.72]. Additionally, there is a 10% interest rate on overdue amounts including royalties and other fees [p.108]. For selling items outside the core brand menu with Franchisor approval, an additional royalty of 10% of Gross Sales for those approved items must be paid [p.70].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in these excerpts. However, if you fully comply with the terms during the initial term, you have the option to renew the agreement for one additional term equal to the renewal or extension term of the lease for the premises [p.71].
Can I sell or transfer my franchise, and what does that require?
According to [p.188], you cannot sell or transfer your franchise without the franchisor's permission, except for good cause as defined by them. This means they can refuse a transfer even if there is no specific good cause provided [p.188].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement before its expiration for good cause, such as the franchisee's failure to comply with any lawful provision of the Franchise Agreement and not curing the failure within a reasonable time frame [p.188]. Additionally, if the franchisee continues to operate after the end of the term or any renewal term without exercising an option to renew, the franchisor may terminate the agreement at any time on ten days' written notice [p.72].
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify exact net worth or liquid capital requirements for qualifying as a franchisee [p.92]. However, it emphasizes maintaining sufficient working capital to fulfill your obligations under the franchise agreement [p.79].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You have a right of first refusal for the area within a 0.6-mile radius from your Freshslice Pizza Business (the 'ROFR Territory'), but you may face competition from other franchisees and outlets controlled by the company [p.37].
What training and ongoing support does the franchisor provide?
The franchisor provides initial on-site training and support for up to 96 hours before the business opens [p.36]. Additionally, after a successful completion of an on-the-job evaluation (OJE), the franchisor offers further training at their headquarters and another location for 12 days [p.23]. The franchisor also assists with the selection or securing of premises and provides ongoing support as needed, though there may be charges for additional training beyond initial management training [p.72].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD does not give a specific number of franchised outlets or those that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor shares limited financial performance information. Specifically, they provide a forecast for an average US franchisee's financial performance [p.51], and if purchasing an existing outlet, actual records of that outlet may be provided [p.54]. However, the franchisor does not make any representations about future or past financial performance except as required by law [p.54].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products that the franchisor authorizes, which may vary by location and season [p.43]. You must purchase or lease certain items from suppliers designated by the franchisor, though the franchisor may designate a limited group of suppliers [p.4].