LaRosas Pizzeria
LaRosas Pizzeria offers Italian-style pizzerias under the 'LaRosa's' brand. Known for quality pizza and dining experiences, it operates in the fast-casual restaurant sector.
LaRosas Pizzeria franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operating a LaRosa's franchise ranges from $1,431,000 to $2,595,000. This includes an initial Franchise Fee and an initial One Number Fee which total $35,000 [p.2].
What is the initial franchise fee?
The initial franchise fee is $25,000 [p.10].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of net sales for items considered LaRosa's Family Recipe products [p.15]. Additionally, there is a marketing fee of 4% of your Franchised Restaurant's net sales, which you must pay unless required to spend a percentage on local advertising in an advertising cooperative [p.19-20].
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?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
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?
Yes, you will receive a protected territory; however, it is not exclusive. The franchisor may establish special purpose outlets in your designated area and may also sell products bearing the LaRosa's name through retail stores within your territory. Additionally, your protected territory can be altered upon renewal of the Franchise Agreement [p.23, p.18], and you do not have an option or right of first refusal to acquire additional franchises within your protected territory or elsewhere [p.23] [FDD, Item 28].
What training and ongoing support does the franchisor provide?
The franchisor provides initial management training for up to four managers, including yourself, which lasts between 6 and 8 weeks. This training is conducted on-the-job at a designated location in Greater Cincinnati, focusing on duties under the Manual of Operations and Franchise Agreement [p.19]. Additionally, during the opening week, an experienced supervisor will provide further training at no additional cost [p.21]. There is also ongoing support through online consultation covering retail operations matters [p.21].
How many franchised outlets are there, and how many have closed or been terminated?
According to [p.23] and [p.35], the FDD does not specify the exact number of franchised outlets. Additionally, no franchisees had an outlet terminated, canceled, not renewed, or otherwise ceased to do business during the most recently completed fiscal year as of the time this document was prepared.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it, but they do not make representations about future financial performance of company-owned or franchised outlets. They also prohibit their employees or representatives from making such representations [p.32]. If you receive any other financial performance information or projections, you should report it to the specified contacts [p.32].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale only the products and services approved by the franchisor (see [p.27]). You must also purchase approved supplies from the designated suppliers provided in the Manual of Operations ([p.28]). This includes potentially more expensive items that you may have to buy or lease from the franchisor or a limited group of suppliers they designate ([p.4]).