Green Mill
Green Mill offers full-service pizza restaurants under the GREEN MILL® brand. Known for its quality pizza, the franchise requires a significant initial investment of $1,669,000 to $2,493,000, making it a substantial commitment in the restaurant industry.
Green Mill franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Green Mill restaurant franchise ranges from $1,669,000 to $2,493,000 [p.1]. This includes an initial payment of $85,000 to $91,000 to the franchisor or an affiliate [p.1], with higher costs if the restaurant is constructed as a free-standing location.
What is the initial franchise fee?
The initial franchise fee is $45,000 and it is payable in full upon execution of the Agreement [p.48]. This fee is not refundable under any circumstances except as specified for non-operational franchises within nine months [p.48].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of Net Sales each accounting period during the initial term of the agreement [p.48]. Advertising Fees are collected in an Advertising Fund that the franchisor owns and manages, with no specific requirement to spend a prorated amount on each restaurant or advertising market [p.22].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in these excerpts. However, you have the option to renew the license granted for one additional ten-year term upon the expiration of the initial term, subject to your election [p.48].
Can I sell or transfer my franchise, and what does that require?
The ability to sell or transfer your franchise is subject to certain conditions. According to the FDD, you must obtain the franchisor's approval for a transfer [p.62]. Additionally, if you die or become incapacitated, your personal representative can transfer the franchise business to heirs or legatees who are members of your immediate family and who qualify as assignees under the agreement, provided they assume all duties and obligations and execute the current form of franchise agreement [p.62]. This isn't specified in the excerpts for other scenarios of selling or transferring the franchise.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement based on several grounds, including voluntary abandonment by the franchisee [p.58], conviction of an offense directly related to the business conducted according to the Franchise Agreement in Minnesota [p.77], failure to cure a default that materially impairs the goodwill associated with the franchisor's trade name or other commercial symbols after receiving notice [p.77], and for reasons not specified but requiring 30 days' written notice [p.58].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on initial cash investment estimates but does not provide specific requirements for net worth or liquid capital needed to qualify as a franchisee.
Do I get an exclusive or protected territory?
You receive a protected area, usually delineated by boundary streets or highways, known as the 'Designated Territory.' Within this territory, the franchisor will not establish another Green Mill Restaurant franchise without your written permission. However, you do not have an exclusive territory; other Green Mill Restaurants may operate in your Designated Territory, and the franchisor retains the right to distribute products through alternative methods of distribution or operate competing businesses using trademarks within or outside your designated area. [p.27]
What training and ongoing support does the franchisor provide?
The franchisor provides initial training or guidance on delivering approved products and services to customers while adhering to customer service standards [p.50]. Additionally, during the two weeks before and after the grand opening of a franchise, the franchisor assigns an 'Opening Team' consisting of four to six trainers from either their own staff or other Green Mill franchisees to assist with training management and other employees [p.3, p.50]. The franchisee is responsible for reimbursing the employer of these trainers for labor costs and covering travel, lodging, and meal expenses incurred by the Opening Team [p.50].
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 being considered for purchase. Otherwise, they do not make representations about future financial performance or past performance of company-owned or franchised outlets [p.37]. If a franchisee receives other financial performance information or projections, they should report it to the franchisor's management and relevant regulatory agencies [p.37].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling specific items but the franchise agreement may prohibit you from operating a similar business during the term of the franchise. Additionally, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate; these items might be more expensive than those available elsewhere [p.3].