Papa Saverios
Papa Saverios offers pizza and other food items in carryout/delivery or sports pub locations. Known for its variety of menu options, the franchise requires significant investment ranging from $143,700 to over $1.2 million. Operates in the quick-service restaurant industry.
Papa Saverios franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening a carryout/delivery location ranges from $143,700 to $454,000. For a PAPA SAVERIO'S sports pub, the range is from $271,500 to $1,244,500. This includes an initial franchise fee of $30,000 that must be paid to the franchisor or its affiliate upon signing the Franchise Agreement. [p.8, p.16]
What is the initial franchise fee?
The initial franchise fee varies based on whether it's your first or additional PAPA SAVERIO'S franchise. For a first franchise, the fee is $30,000, while for an additional franchise, it is $15,000. This information can be found on pages [p.8], [p.14], and [p.17].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Gross Sales from the Franchised Business, payable together with the Royalty Fee due under the Franchise Agreement [p.81]. As for advertising fees, the franchisee may be required to contribute 0 to 5% of Gross Sales to the Advertising Fund, though as of the date of this disclosure document, this fund is not in effect and may be implemented in 2023 [p.24].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in these excerpts. However, you have the option to renew the franchise term for a successive additional ten (10) year term, subject to meeting certain conditions prior to each renewal as outlined in the agreement [p.99].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, on renewal or transfer of a franchise, the territory may be modified based on current demographics and standards. The transferee must meet the Company's then-applicable standards for franchisees, including having sufficient business experience, financial resources, and good moral character [p.106]. Additionally, the franchisor can modify the territory if it is larger than their current standard [p.31].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if the franchisee fails to meet the minimum monthly gross sales requirement for three consecutive months after being given notice [p.30]. Additionally, violation of Anti-Terrorism Laws by the franchisee or its owners/employees, or 'blocking' of any of the franchisee's assets under these laws can also lead to immediate termination [p.115]. The franchisor may also terminate the agreement if there is competition from them in your territory [p.3], and they have operating restrictions that could be grounds for termination as well [p.3].
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 are granted a protected area, often referred to as a "Protected Area," which is specific to your franchise location. However, this protection does not apply to certain types of locations like limited use facilities such as airports or theme parks [p.29, p.83]. Additionally, if your monthly gross sales fall below $25,000 for any six consecutive months, the company can terminate your rights to the Protected Area [p.83].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program of up to 30 days before the start of the franchise, which includes pre-opening and opening on-the-job supervision for approximately 2 weeks. This initial training is mandatory, and the franchisee must pay for all travel and living expenses incurred by them or their manager during this period [p.26]. Additionally, the franchisor requires participation in up to five days of refresher training per year at a location selected by the company, with the franchisee responsible for transportation, lodging, and other related expenses [p.84].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide a specific number for the total number of franchised outlets. However, it mentions one restaurant operated under a license in Illinois [p.39] and lists some franchisees who had units transferred, terminated, cancelled, or ceased business operations during the fiscal year ended December 31, 2022 [p.40]. 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, but they do not make representations about future financial performance or past financial performance of company-owned or franchised outlets. Any other financial performance information should be reported to specified authorities as outlined in the FDD [p.38].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those goods and services that the franchisor has approved and must also offer all goods and services designated by them. All goods and services must be presented in accordance with their System Standards [p.29]. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3]. This isn't specified in the excerpts for where you must buy supplies specifically.