Godfathers
Godfather's Pizza offers a range of food options including pizza, sandwiches, and salads through traditional and non-traditional locations. Known for its quality pizza and casual dining atmosphere, it operates in the quick-service restaurant sector.
Godfathers franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation varies depending on the type of location. For a full-service restaurant, it ranges from $637,300 to $1,159,300 [p.1]. For a convenience store or other non-traditional location, it is between $161,700 and $356,400 [p.1]. Delivery/carryout locations require an investment from $448,300 to $775,600 [p.1], while purchasing an existing company-operated location costs between $188,200 and $645,800 [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the type and number of locations, the area proposed for development, and your financial condition. For traditional sit-down locations, it can be up to $25,000; for delivery/carryout locations, up to $15,000; and for convenience stores or other non-traditional locations, up to $7,500. This fee is collected after GPI performs its pre-opening services and the location opens [p.11, p.24-22].
What are the ongoing royalty and advertising fees?
The ongoing continuing fees consist of royalties and service compensation, both calculated as the greater of 3.25% of net sales or a flat fee ($175 for traditional locations or $75 for non-traditional locations). These fees are recognized as revenue in the period sales are earned by the franchisee and are generally paid within 30 days [p.83]. This isn't specified in the excerpts regarding advertising fees.
How long is the initial franchise agreement, and can I renew it?
The initial term of a franchise agreement is generally five years [p.183, p.158]. A franchisee may elect to renew the term of the agreement by executing a new agreement and paying a renewal fee upon its execution [p.183, p.101].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires approval from the franchisor. According to [p.99], a transfer must meet several conditions, including ensuring the transferee has sufficient business experience, financial resources, and completing training programs. Additionally, Franchisee must pay any outstanding fees and submit required reports. The transferee also needs to agree to ongoing obligations under the franchise agreement, and there is a $5,000 fee for the transfer. [p.98] defines what constitutes a transfer, including assignments, sales, or other transfers of ownership interests in Franchisee, this Agreement, the Franchise, or the Location.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if they choose to terminate the Fund, which they have the right to do after providing 30 days' written notice. This termination would use remaining Fund amounts to cover advertising and overhead costs as described [p.35].
What financial requirements — net worth and liquid capital — do I need to qualify?
According to the FDD, new franchisees generally need a net worth of at least $350,000 and a liquid net worth of at least $200,000. However, GPI may waive these requirements for individuals with substantial net worth or significant restaurant operating experience, particularly within the Godfather's Pizza system [p.50].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. While GPI may provide limited exclusivity in very specific circumstances as described in [p.38], this is not a standard provision for most franchisees. [p.37] explicitly states that you will face competition from other franchisees and outlets controlled by the company.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training through The Informant, an online training program, for new hires within 30 days of their hire date [p.32]. Additionally, franchise owners receive assistance from company personnel in construction and remodeling consultation, as well as marketing support [p.183, p.159]. This support is also extended to Company-operated restaurants [p.183, p.159].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The FDD does not provide a current number of franchised outlets or details about those that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it, and if it includes actual records of an existing outlet you are considering buying. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, nor do they authorize their employees to make such representations. [p.51]
What am I restricted to selling, and where must I buy supplies?
You are required to sell only Godfather's Pizza products from your location [p.41]. You must purchase certain food products, supplies, and paper products used in preparing pizza and other products from distributors approved by GPI [p.25], though fresh produce can be purchased from local vendors.