Giordanos
Giordanos offers franchises to operate Italian-style pizza and pasta restaurants, known for their stuffed and thin-crust pizzas in Chicago. Part of the quick-service and casual dining restaurant industry.
About Giordanos
Giordano's is an American pizzeria chain that specializes in Chicago-style stuffed deep-dish pizza. Brothers Efren and Joseph Boglio founded Giordano's in 1974 in Chicago, Illinois. The pizzeria has since expanded to 56 locations in Colorado, Florida, Indiana, Iowa, Minnesota, Ohio, Nevada, Washington, D.C., and Wisconsin. The chain has also expanded to offer catering and ship frozen pizzas in the United States.
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Giordanos franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Giordano's® Restaurant franchise is between $609,000 and $973,000 for a Limited-Service Restaurant and between $1,565,000 and $2,056,000 for a Full-Service Restaurant. This includes an Initial Franchise Fee of $40,000 and payments for initial inventory totaling approximately $5,000 to $9,000 for a Limited-Service Restaurant and $9,000 to $23,000 for a Full-Service Restaurant that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The Initial Franchise Fee for a single Limited-Service or Full-Service Restaurant is $40,000 and is payable in full when you sign the Franchise Agreement. This fee is fully earned upon payment and is nonrefundable. [p.13] Additionally, this fee will be deferred until the franchise is open for business according to some terms. [p.55]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is up to 6% of gross sales [p.183]. There is also an advertising fee, but its exact percentage isn't specified in these excerpts; however, it's noted that prior versions capped this at 2%, and the current version doesn't specify a different cap [p.16].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is not explicitly stated in the provided excerpts, but after the initial term, you have two options to renew the license for a period of five years each. To exercise these renewal options, you must provide written notice between one and eighteen months before the expiration of the Initial License Term or the First Renewal Term, whichever is applicable. [p.66]
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can generally refuse to permit the transfer of ownership of a franchise except for good cause [p.5]. Good cause includes but is not limited to unspecified factors. If you wish to transfer your franchise, you would need to follow the procedures outlined in the agreement, as detailed on page 206 [p.206].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for several reasons, including if any part related to fee payments, non-competition during the term, or preservation of marks and confidential information is declared invalid or unenforceable. Additionally, termination may occur if the franchisor believes in its sole discretion that continuing the agreement would not be in the best interests of the Giordano's® System [p.101, p.151].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control [p.35]. Additionally, while you have a Development Area under an Area Development Agreement, it does not grant you any 'exclusive,' 'protected' or 'reserved' territorial rights [p.138] and you may face competition within your Development Area as well.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial 'Restaurant Management Initial Training Program' lasting eight weeks, which includes pre-opening and post-opening training. This must be completed before opening the restaurant and includes on-the-job observations for validation. For performance issues, the franchisor may also provide remedial training upon request or as deemed necessary by them. [p.31, p.76]
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 32 franchised Giordano's® Restaurants. Two franchised restaurants ceased operations in 2024, but it is not specified how many have closed or been terminated prior to that date [p.46].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares historical financial performance information in Item 19 of the Disclosure Document. This information reflects certain experiences of company-owned and franchised restaurants but is prepared by management without external audit. [p.46] [p.48] However, the franchisor does not make any other financial performance representations except for providing actual records of an existing outlet if a franchisee purchases one. [p.48]
What am I restricted to selling, and where must I buy supplies?
You are required to sell Giordano's® products and novelties, promotional literature, and other materials as specified by the franchisor. You must also participate in promotional drives, prize contests, and other programs as required. For supplies, you must purchase from distributors and suppliers approved by the franchisor that meet their standards and specifications [p.28]. This may be more expensive if your restaurant is located outside of Illinois [p.19].