MOD Pizza
MOD Pizza offers made-to-order artisan pizzas, salads, and drinks in a fast-casual setting. Known for its 'super fast' service and diverse menu, it operates in the quick-service restaurant sector.
About MOD Pizza
MOD Pizza is an American fast-casual pizza restaurant chain based in Seattle, Washington. Founded in 2008, MOD has more than 460 locations as of December 2024 in the United States and 2 locations in Canada.
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MOD 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 franchised MOD Pizza Restaurant ranges from $891,644 to $1,193,006. This includes a payment ranging from $33,000 to $48,000 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000 for the right to operate one MOD Pizza Restaurant in the Protected Area [p.81]. This fee is payable upon signing the agreement and is non-refundable [p.81].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is at least 2% of weekly revenues, in addition to a weekly Marketing Fee [p.29]. For local marketing, you must spend at least 2% of your weekly revenues on approved Local Marketing activities, with invoices or supporting documentation required for MOD Pizza's review and potential payment into the Marketing Fund if the minimum is not met [p.29].
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?
The franchisor can refuse to permit the transfer of ownership of the franchise except for good cause, which includes but is not limited to unspecified reasons. This section also states that the franchisor may have a right of first refusal to purchase the franchise. [p.5]
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement prior to its expiration for good cause, which includes the failure of the franchisee to comply with lawful provisions of the Franchise Agreement and not curing such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so [p.5]. Additionally, the franchisor can terminate the agreement on any grounds available by law [p.227].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD focuses on maintaining sufficient working capital but does not detail specific net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you will not receive an exclusive territory. You may face competition from other franchisees, MOD Pizza-owned outlets, or competitive brands controlled by MOD Pizza within your Protected Area [p.34].
What training and ongoing support does the franchisor provide?
The franchisor provides a Franchise Support Guide which includes books, pamphlets, training videos, discs, software, bulletins, memoranda, letters, notices, or other publications setting forth information, advice, standards, requirements, operating procedures, instructions, or policies related to the operations of the Restaurant System. However, this support is only available after you meet the qualifications established by MOD Pizza and receive their consent, which can be withheld in their discretion [p.9]. Additionally, initial franchise fees are not required until all pre-opening and initial training obligations have been met and the restaurant is open for business [p.236, p.256] and [p.4 specifies some financial concerns about the franchisor's ability to provide services and support].
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 may provide actual records of an existing outlet if you are purchasing one. However, they do not make financial performance representations about future or past performance of company-owned or franchised outlets and do not authorize their employees to make such representations [p.46]. Financial performance information can be given only if there is a reasonable basis for it and it is included in the disclosure document [p.46].
What am I restricted to selling, and where must I buy supplies?
You are required to purchase certain foods, beverages, and products from suppliers approved by MOD Pizza at your expense [p.22]. You may only sell the foods, beverages, and products specified or approved in writing by MOD Pizza [p.38], and you cannot sell any of these items on a wholesale basis or through other methods outside your Franchised Location [p.38].