Mountain Mikes Pizza
Mountain Mikes Pizza offers franchises to operate restaurants serving pizza, sandwiches, and salads. Known for its unique 60-second pizza promise, it operates in the quick-service restaurant sector.
About Mountain Mikes Pizza
Mountain Mike's Pizza is a chain of franchise pizzerias mainly along the West Coast of the United States, primarily in Northern California. They have additional locations in Arizona, Colorado, Nevada, Oregon, Utah, Texas, Washington, Wisconsin, and Idaho. The restaurants offer other items, such as chicken wings, garlic sticks, dessert pizzas, as well as a lunch buffet and salad bar.
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Mountain Mikes Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single Mountain Mike's® Pizza Restaurant ranges from $476,500 to $982,611. This includes the establishment costs and does not include leasehold improvements or construction if you purchase the property [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000 if it's your first Mountain Mike's® Pizza Restaurant. If you already own a controlling interest in another Mountain Mike's® Pizza Restaurant, the initial franchise fee is reduced to $15,000 [p.12, p.182].
What are the ongoing royalty and advertising fees?
The ongoing fee is a weekly royalty of five percent (5%) of the RESTAURANT's gross sales, payable through automatic debit from your business checking account [p.126]. Additionally, you must contribute to the Marketing Fund, which amounts to not more than one percent (1%) of the RESTAURANT's gross sales, payable in the same manner as the royalty [p.32 and p.139].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you may be able to acquire a successor franchise for a ten (10) year term under certain conditions, as outlined on [p.152]. This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires approval from Mountain Mike's Pizza, LLC [p.146]. You must pay a $2,500 transfer fee, ensure the new owner signs the Guaranty and Assumption of Obligations, and meet other qualifications as determined by the franchisor [p.146-147]. This approval can be withheld if the new owner would violate the terms or have a negative impact on the brand's goodwill [p.146].
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. The FDD does not provide specific details on net worth or liquid capital requirements for franchise qualification. However, it mentions that Mountain Mike's may require you to submit financial statements and verify your financial capabilities as part of the application process [p.209].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory. Instead, you are granted a Protected Area with a typical radius of 1½ miles around your restaurant [p.40]. This Protected Area may overlap with another franchisee's area and its size can vary based on factors like location and demographics [p.40].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for up to 5 weeks, which can include online courses, video calls, or on-site training at a designated location. This training covers Mountain Mike's® Pizza Restaurant operations but excludes labor relations and employment practices. Additionally, the franchisor offers up to 10 days of additional training before and after the restaurant opens. For ongoing support, the franchisor may require periodic refresher courses and can charge fees for new supervisory employee training. The franchisor also expects franchisees to assist in training other franchisees but will reimburse them for this assistance. [p.38, p.128-129]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The excerpts provide information about the number of JUICE IT UP® juice bars but do not give specific numbers for Mountain Mike's® Pizza Restaurant outlets that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.60]. However, if you are purchasing an existing outlet, MMP may provide actual records of that outlet's performance [p.60]. Additionally, the franchisor is permitted to provide financial performance information only under specific conditions outlined in Item 19 and if there is a reasonable basis for such information [p.57].
What am I restricted to selling, and where must I buy supplies?
You are required to operate the restaurant according to MMP's System Standards, which may regulate the types of products you sell. [p.24] Additionally, you must purchase or lease certain fixtures, equipment, supplies, and services from suppliers approved by MMP, including some that may be designated as MMP or its affiliates. [p.30, p.25]