Pieology
Pieology offers fast-casual pizza restaurants with unique toppings and build-your-own options. Known for creative pie crusts and diverse flavor profiles, it operates in the casual dining sector of the food service industry.
About Pieology
Pieology Pizzeria is an American pizza chain within the fast-casual dining restaurants category. Founded in 2011 by Carl Chang, the brother of former tennis player Michael Chang, Pieology's mission is to "turn one of America's favorite food into an affordable and interactive experience". Pieology's main rivals are Blaze Pizza and MOD Pizza. By October 2018, Pieology had a single unit in Mexico plus approximately 140 units in 23 American states and territories with more than half of those restaurants located in the state of California.
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Pieology franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Pieology Restaurant is estimated between $304,000 and $807,500. This includes an initial fee of $40,000 that must be paid to the franchisor or an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $25,000 [p.12, p.85]. This fee is fully earned upon signing the Agreement and is not refundable [p.106].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of each restaurant's gross sales, payable weekly. There were no royalty rebate incentives mentioned for the specified years. Advertising expenses, which include marketing and advertising efforts managed by the company on behalf of franchisees, amounted to approximately $1,789,000, $1,314,000, and $1,057,000 for the years ended December 25, 2023, December 26, 2022, and December 27, 2021, respectively. [p.185, p.186]
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, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.6]. Good cause includes establishing continuity and cooperation among Pieology Restaurants in the market area and protecting the Pieology® brand [p.106]. Therefore, if you or your affiliates seek to enter into any transfer that would require the franchisor's approval, they may condition their approval on the simultaneous transfer of other rights, interests, obligations, assets, and/or ownership interests such that the transferee (or its affiliate) owns and operates all Pieology Restaurants in the market area [p.106].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a failure by the franchisee to comply with any lawful provision of the franchise agreement and such failure is not cured within a reasonable time frame [p.6]. Additionally, the franchisor may have grounds for termination under Virginia law if the reasons stated in the agreement do not constitute 'reasonable cause' as defined by the Virginia Retail Franchising Act or Virginia laws [p.210].
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?
No, you do not receive an exclusive territory [p.42]. Your Protected Zone is defined by criteria set by the franchisor and may vary based on factors like demographics and site characteristics [p.41], but you will face competition from other franchisees, outlets owned by the company, or other channels of distribution within this zone [p.42, p.44].
What training and ongoing support does the franchisor provide?
The franchisor provides mandatory initial brand standards training for the franchisee and two additional individuals they designate. This training is conducted at their Support Center or a certified training restaurant, with some components available virtually or online [p.38]. Ongoing support includes sending a Training Team to provide on-site training during pre-opening and immediate post-opening periods, unless covered by a Certified Training Restaurant [p.39]. The specific duration and content of this on-the-job training are determined by the franchisor based on relevant factors [p.39].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The FDD provides information about year-end numbers but does not give a specific count of current franchised outlets or those that have closed or been terminated. [p.63] mentions that Exhibit I lists names, addresses, and telephone numbers of Pieology Restaurants as of December 25, 2023, and includes those who ceased to do business under a franchise agreement during the 2023 fiscal year, but it does not provide exact figures.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it and if such information is included in the disclosure document [p.58]. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, nor do they authorize their employees or representatives to make such statements [p.58]. This isn't specified in the excerpts for all scenarios, but generally, the franchisor limits the sharing of financial performance information to what is included in the FDD and does not provide projections or guarantees about future earnings.
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling any particular items, but you may have to buy or lease certain items from the franchisor or a designated group of suppliers. [p.4] This includes items that might be more expensive than those available elsewhere.