Jets Pizza
Jets Pizza offers franchises for pizza, calzones, salads, and other food primarily for carry-out and delivery. Known for quick service and military discounts, it operates in the fast-casual restaurant industry.
About Jets Pizza
Jet's America, Inc., doing business as Jet's Pizza, is an American chain of fast food pizza restaurants. Founded in Sterling Heights, Michigan in 1978, Jet's has more than 400 locations across 25 U.S. states, primarily franchised.
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Jets Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary for opening one Jet's Pizza franchise, assuming an Area Development Agreement allowing for development of three stores, is $37,500 after applying the 50% military discount (or $75,000 without the discount), in addition to the cost of leasing space and other expenses. This does not include the costs of purchasing real estate or constructing a building suitable for the franchise, which can vary widely depending on local market conditions. [p.1]
What is the initial franchise fee?
The initial franchise fee is $30,000, except for certain franchises established pursuant to an Area Development Agreement or for those franchisees which qualify for a military discount. For franchisees at least 20% owned by a person in active duty or who has served in the military (and was not dishonorably discharged), the initial franchise fee is $15,000, reflecting a 50% military discount. [p.10]
What are the ongoing royalty and advertising fees?
The ongoing royalty and advertising fees are based on a percentage of acquired inventory and a usage-based advertising fee, respectively. According to [p.81], franchise royalties are recognized when earned based on the percentage of acquired inventory purchases by the franchisees. Additionally, there is an advertising fee included in the franchise agreement as mentioned in [p.82].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement typically lasts for ten years [p.82]. According to the excerpts, you can renew the franchise under certain conditions, including delivering a complete release of claims from the previous term [p.154].
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your Jet's Pizza franchise, you need the consent of Franchisor as specified in [p.131] and [p.136]. This consent is required because transferring the franchise involves a change in ownership and requires compliance with the terms and conditions outlined in the Franchise Agreement [p.49(G)].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.175]. Additionally, the franchisor may change its business model without consent, which could require additional investments or harm the franchise business [p.3], but this does not directly constitute a termination ground. The franchisor cannot cancel a franchise without reasonable cause as defined under Virginia Retail Franchising Act [p.180], and any provision involving undue influence to induce surrender of rights may also be unenforceable [p.180].
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, your territory is not exclusive [p.29]. You may face competition from other franchisees and from outlets owned by the company [p.29]. The franchisor also retains the right to operate 'Non-Traditional Restaurants' and handle 'Special Events' in your designated area [p.29].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program through Jet's Pizza University that includes classroom sessions, hands-on on-the-job training at their affiliate locations in Michigan (or another convenient location if possible), and online video lessons. This training lasts six days a week for six consecutive weeks, totaling three hundred hours. Two restaurant managers must complete this training satisfactorily within nine months of the Franchise Agreement date; otherwise, Jet's may cancel the franchise. Additional training is not currently required but can be requested at a fee of $1,000 per person [p.27]. The franchisor does not provide assistance with hiring and requires the franchisee to cover travel, meals, lodging, and other expenses related to training [p.21].
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 are not permitted to make representations about future financial performance or past performance of company-owned or franchised outlets [p.39].
What am I restricted to selling, and where must I buy supplies?
You are required to offer all menu items that Jet's designates as mandatory and cannot sell any unapproved menu items [p.34]. For supplies, you must purchase leasehold improvements, furniture, fixtures, equipment, inventory, and supplies according to specifications set by Jet's from approved suppliers [p.16].