Paisanos
Paisanos offers fast casual restaurants serving authentic pizzas and made-to-order dishes like buffalo wings, salads, and sandwiches under the PAISANO'S PIZZA KITCHEN brand. Known for high-quality ingredients, this franchise operates in the pizza and casual dining industry.
Paisanos franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment necessary to begin operation of a single franchised Restaurant ranges from $362,300 to $654,900. This includes a payment of between $45,000 and $60,000 towards the Development Fee upon signing the Multi-Unit Development Agreement (MUDA), plus additional costs as specified in other agreements [p.1, p.15].
What is the initial franchise fee?
The initial franchise fee is $30,000 [p.14, p.84]. This fee is fully earned and non-refundable in consideration of administrative expenses and our lost or deferred opportunity to enter into a Franchise Agreement with others [p.15, p.26, p.211].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is deducted weekly via electronic funds transfer based on the gross sales reported for the preceding week [p.84]. Additionally, there is a requirement to contribute one percent of Gross Sales to the Brand Fund, which can increase up to two percent with sixty days' notice [p.98]. This contribution supports regional or national advertising efforts for the brand [p.100].
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?
According to the FDD, you can generally not transfer ownership of your franchise without the franchisor's permission, except for good cause [p.6]. The potential transferee must also meet certain criteria, such as educational, managerial, and business standards; good moral character; financial resources; and geographic proximity to other franchises [p.111(d)].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on grounds such as the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity to do so, which cannot exceed 30 days [p.6(c)]. Additionally, termination is permitted without good cause prior to expiration [p.211], though this may be limited by Virginia Retail Franchising Act requirements for 'reasonable cause' [p.212].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor requires that if their most recent financial statements show a net worth of less than $100,000 and are unaudited, they must arrange for the escrow of initial investment funds until obligations are fulfilled [p.7]. However, specific requirements regarding your personal net worth or liquid capital to qualify as a franchisee are not specified in the excerpts provided.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory, but you are granted protected rights within a specified Development Area to establish and operate a certain number of Restaurants. However, these rights can be terminated upon completion of the Development Schedule, allowing the franchisor and its affiliates to operate and grant franchises in that area [p.51].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes instruction from experienced company employees and relevant materials, lasting up to sixty days for new franchise operators. Ongoing support is also provided; upon request or as deemed appropriate by the franchisor, additional trained representatives can offer on-site remedial training and assistance, which comes with a fee [p.91]. For transfers, the transferee must complete any then-current training programs at their expense [p.112]. The training program may be subject to changes without prior notice due to updates in materials or personnel [p.47].
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, Paisano's Franchise System, Inc., does not make any financial performance representations [p.67]. They do not authorize their employees or representatives to make such representations either orally or in writing. However, if you are purchasing an existing outlet, they may provide actual records of that outlet [p.67]. This isn't specified in the excerpts for new franchises.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those menu items, products, and services that the franchisor has expressly approved in writing. You must sell them according to the methods, standards, and specifications prescribed by the franchisor, including using their recipes and procedures for preparation [p.56]. Additionally, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which could be more expensive than other options [p.4].