Oath Pizza
Oath Pizza offers upscale, fast-casual pizza restaurants with customizable craft pizzas. Known for high-quality menu items, it operates under a unique restaurant system in the fast-casual dining sector.
Oath Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an Oath Pizza restaurant ranges from $380,000 to $550,000. This amount includes a $30,000 payment payable to the company [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000, which includes an application fee of $15,000 and a fee of $15,000 to use the system and proprietary marks during the term of the Franchise Agreement [p.12]. This fee is fully earned upon payment and is not refundable [p.12].
What are the ongoing royalty and advertising fees?
The franchisee must pay ongoing royalties, marketing fund contributions, and technology development fees based on the restaurant's gross sales each week [p.18]. Additionally, advertising materials, merchandise, and premium items developed by the Marketing Fund may be sold to the franchisee, with earnings deposited into the Marketing Fund [p.39].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the term length of the initial franchise agreement or the conditions for renewal.
Can I sell or transfer my franchise, and what does that require?
You can transfer ownership of your franchise, but the franchisor has the right to refuse transfers for good cause [p.60]. The transfer fee can be reduced under certain conditions, such as transferring to a transferee who has been a franchisee for at least three years or adding a new owner with less than a 20% interest while maintaining a 51% ownership by the Control Group [p.18].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity (no more than 30 days) to cure. [p.60]
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?
You do not receive an exclusive territory under the Franchise Agreement, as you may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them [p.41]. However, you are granted a Protected Territory around your specific location where the company will not operate another Oath Pizza restaurant without your agreement [p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial management training program that includes web-based training, classroom and on-the-job training at a corporate restaurant, and up to eight days of support in your Restaurant. This must be completed within 30 days before opening your first Restaurant [p.36]. Additionally, the franchisor requires periodic training programs for employees, with costs borne by the franchisee [p.38].
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 Oath Pizza Restaurant if you are purchasing one, but they do not make any representations about a franchisee's future financial performance or past financial performance of company-owned or franchised outlets. Additionally, the franchisor does not authorize their employees or representatives to make such representations either orally or in writing [p.51].
What am I restricted to selling, and where must I buy supplies?
You must sell all products and services designated as required items by the franchisor and may also offer optional items approved for sale. You cannot sell any products or services not listed without obtaining prior written consent [p.46]. Additionally, you may have to purchase or lease certain items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.4].