Hot Stuff Pizza Hott Stuff Kitchen LLC
Hot Stuff Pizza Hott Stuff Kitchen LLC franchises allow operators to sell pizza, sandwiches, chicken, and more under the OLM brand in retail settings like convenience or grocery stores. Known for using proprietary recipes and products from ORION FOOD SYSTEMS, LLC, it operates in the quick-service restaurant industry.
Hot Stuff Pizza Hott Stuff Kitchen LLC franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an OLM franchise ranges from $62,500 to $175,500. This includes $20,500 to $88,500 that must be paid to the franchisor or affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee range is not specified directly in these excerpts. However, it can be inferred that a portion of the total investment falls under this fee, as indicated on page [p.1]: "This includes $20,500 to $88,500 that must be paid to the franchisor or affiliate."
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement is for an initial term of five years, beginning on the date the unit opens for business or, for existing units converting to this agreement, from the date both parties execute the agreement. It may be renewed for one additional term of five years if neither party gives written notice not to renew at least 90 days before the initial expiration date, and you are not in breach of the agreement at that time [p.44].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you may only assign this Agreement to an OLM-approved transferee for the operation of the franchise under specific terms and conditions. Any other sale, transfer, or delegation is not permitted without OLM's consent, which it can grant or withhold at its discretion [p.59]. Additionally, if a transfer is approved, the proposed transferee must either enter into a new franchise agreement with OLM or sign an amendment to this Agreement assuming your obligations for the remainder of the term [p.49].
On what grounds can the franchisor terminate the agreement?
According to [p.57], the franchisor (OLM) can terminate the agreement for good cause if the franchisee fails to comply with the terms and conditions, including the Franchise Agreement, the Franchise Agreement for the Unit, and OLM's System.
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 or any territorial protections. You may face competition from other franchisees, outlets owned by OLM, and other competitive brands [p.22].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training in establishing and operating the unit, which typically involves a minimum of 30 trainer-hours conducted over four days. OLM also offers ongoing operations counseling covering various aspects such as ingredient handling, product preparation, sanitation practices, financial performance, advertising techniques, customer service, and more [p.21]. This support is designed to help franchisees grow their business and address any operational issues they encounter [p.21].
How many franchised outlets are there, and how many have closed or been terminated?
According to Exhibit E [p.39], as of the most recently completed fiscal year, there were 752 franchised Units listed in this disclosure document. Additionally, it includes information on franchisees who had a Unit transferred, terminated, canceled, not renewed, or otherwise ceased to do business under the Franchise Agreement during OLM's most recent fiscal year, but specific numbers are not provided in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but they do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. [p.32] Additionally, if you receive any other financial performance information or projections of your future income, you should report it to the franchisor’s management and relevant regulatory agencies. [p.32]
What am I restricted to selling, and where must I buy supplies?
You are restricted from operating a similar business during the term of the franchise. The franchisor may also control your location, access to customers, what you sell, how you market, and your hours of operation [p.3]. You must purchase all signage and cabinetry bearing the Trademarks of the OLM Brand(s) from sources expressly authorized by the franchisor [p.13] and buy or lease items from the franchisor or a limited group of suppliers designated by them; these items may be more expensive than those you could buy on your own [p.3].