Grimaldis Pizzeria
Grimaldi's Pizzeria offers hand-tossed pizzas, calzones, house-made salads, and cheesecakes baked in a coal-fired brick oven. Known for high-quality, fresh ingredients, this pizzeria operates under multiple brand names and requires significant investment.
About Grimaldis Pizzeria
Grimaldi's Pizzeria is an American pizzeria chain from the New York City area with over 40 restaurants throughout the United States. Its most famous restaurant is under the Brooklyn Bridge in Brooklyn at 1 Front Street, next door to its original location. Zagat Survey rated Grimaldi's the No. 1 Pizzeria in New York in 2007. With a carry-out and delivery service model in response to the COVID-19 pandemic, in 2022 it had 43 restaurants in operation overall. Slices are sold at all locations except Brooklyn and Palazzo locations, which are cooked by coal-fired brick ovens. It also sells wines and appetizers, as well as calzones. Among desserts are cannoli and tiramisu, as well as New York–style cheesecake.
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Grimaldis Pizzeria franchise FAQ
How much does it cost to open one — the total initial investment?
The total amount necessary to begin operation of a Grimaldi's Restaurant under a Grimaldi's Restaurant Franchise Agreement ranges from $1,389,800 to $1,835,000 [p.1]. This includes the cost payable to the franchisor and its affiliates, as well as other estimated costs for opening supplies and professional services [p.17-18].
What is the initial franchise fee?
The initial franchise fee is $50,000 and is fully earned by the franchisor upon payment; it is nonrefundable unless specific conditions are met related to site development or training completion [p.64].
What are the ongoing royalty and advertising fees?
The franchisee pays a weekly royalty fee of 6% of the restaurant's gross sales [p.64]. Additionally, the franchisee must contribute 2% of the restaurant's gross sales weekly to the Grimaldi's Restaurant Marketing and Brand Fund for advertising purposes [p.65].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, you must advise the franchisor in writing about any proposed transfer and submit a franchise application for the proposed transferee along with relevant agreements and information requested by the franchisor [p.93, p.138]. The franchisor will then decide whether to approve the transfer based on various factors they deem relevant [p.185]. This isn't specified in the excerpts regarding good cause for refusal or specific details of those factors.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on various grounds, including if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time frame [p.185]. Additionally, the franchisor may terminate the agreement without a cure period for other specified events, though specific events are not detailed in these excerpts [p.144, p.99]. This isn't specified in the provided excerpts for all possible grounds.
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?
No, you do not receive an exclusive territory under the Franchise Agreement [p.32]. You may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them. This isn't specified in the excerpts for the Development Agreement's exclusivity provisions either.
What training and ongoing support does the franchisor provide?
The franchisor provides initial opening training, including on-site training for trainers and staff members, assistance with opening marketing activities, and additional management support. This initial training is typically limited to up to 14 days for the first or second restaurant developed by a franchisee [p.76]. Ongoing support includes periodic training programs required by the franchisor and certification of employees in their respective positions [p.76].
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 does not make financial performance representations except for providing actual records of an existing outlet if a franchisee is purchasing one. However, the franchisor may share such information with other franchisees or in data compilations at its discretion [p.45, p.67]. Additionally, the franchisor's financial condition as reflected in its financial statements is questionable regarding its ability to provide services and support [p.4].
What am I restricted to selling, and where must I buy supplies?
You are restricted to what you may sell as detailed in Item 8 and Item 9. You must buy or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3]. Additionally, if you wish to purchase any supplies from an unapproved supplier, you must first obtain prior written approval from the franchisor [p.82].