Hangar 54 Pizza
Hangar 54 Pizza operates within existing businesses like grocery or convenience stores, offering pizza and breakfast items. Known for its flexible location options and diverse menu, it falls under the quick-service restaurant sector.
Hangar 54 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 Hangar 54 Pizza franchise within an existing business ranges from $9,000 to $643,500. This includes $4,500 to $130,000 that must be paid to the franchisor or affiliate. [p.2]
What is the initial franchise fee?
According to the excerpts provided, there is no requirement or charge for an initial franchise fee. The document states on [p.53] that "You are not required to pay an initial franchise fee in relation to this Agreement," and similarly, [p.13] notes "We do not charge an initial franchise fee."
What are the ongoing royalty and advertising fees?
There are no required continuing royalties as stated on [p.53]. However, there is a license fee that is considered a sales-based royalty, collected quarterly in arrears at 0.50% of Pro Food Systems Inc.'s net sales to the franchisees, based on information provided on pages [p.101] and [p.112]. Advertising fees are not specified as royalties but rather can be reimbursed from an Accrual Fund under certain conditions, as detailed on [p.23].
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?
According to the FDD, selling or transferring your franchise requires the franchisor's approval [p.83]. The specific conditions for such transfers are detailed in Item 17(m) of the FDD [p.76-83], which outlines the criteria the franchisor may use to approve or deny a transfer request.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law, as stated on [p.83]. However, termination without 'reasonable cause' as defined under Virginia Retail Franchising Act or Virginia laws may not be enforceable, according to [p.86].
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 [p.36]. You may face competition from other franchisees, company-owned restaurants, and other channels of distribution controlled by the franchisor [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides Manager Training as part of the support package [p.54]. Additionally, they will offer any additional training that is deemed beneficial for the system [p.28], though no franchisees have enrolled in nonmandatory training during the past year [p.35]. This isn't specified in the excerpts regarding other forms of ongoing support.
How many franchised outlets are there, and how many have closed or been terminated?
There are currently 243 Wingman Pizza® licensees and 22 Hot Mex Express® licensees. According to the FDD, no franchisees had an outlet terminated, canceled, not renewed, or otherwise ceased to do business during the most recent completed fiscal year [p.50].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of existing outlets if you are purchasing one, but generally does not make representations about future financial performance. The franchisor is also prohibited from authorizing its employees or representatives to make such representations [p.45]. Financial performance information may be provided under specific conditions outlined in the FDD [p.45].
What am I restricted to selling, and where must I buy supplies?
You are required to offer for sale all Products and Services that the franchisor directs you to offer, as listed on Attachment 2 of the Agreement. You may not sell any products substantially similar to Hangar 54 Pizza Products and Services or those specifically directed not to be sold [p.55]. Additionally, you must purchase certain supplies from Pro Food Systems, including ovens, refrigerated preparation tables, signage, ingredients, packaging, and branded products [p.13].