Pizza Factory
Pizza Factory offers fast casual pizza and pasta in dine-in, take-out, and delivery formats through single or area development agreements, with investments ranging from $318,000 to $740,000. Known for its sit-down and quick-service options, Pizza Factory operates in the casual dining and pizza restaurant industry.
About Pizza Factory
Pizza Factory Inc. is a chain of pizza restaurants in the western United States, based in Oakhurst, California. The company began in 1979, when Danny Wheeler and his wife Carol opened Danny's Red Devil Pizza in Oakhurst. Ron Willey and his wife Joyce subsequently opened a second location in 1981, known as Pizza Factory.
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Pizza Factory franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Pizza Factory franchise ranges from $318,000 to $740,000, which includes the initial payment of between $15,000 and $25,000 [p.1].
What is the initial franchise fee?
The initial franchise fee is $25,000 [p.13]. This fee is not refundable under any circumstances [p.13].
What are the ongoing royalty and advertising fees?
The monthly royalty fee is 5% of net sales [p.163], while the advertising fee is 3% of net sales [p.163].
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 length of the initial franchise agreement or the renewal process beyond mentioning that the agreement may be renewed on a week-to-week basis under certain conditions [p.98].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of the franchise except for good cause, which includes but is not limited to unspecified reasons [p.8]. Additionally, if you wish to transfer your franchise to another party, there may be associated fees due from you when a transfer occurs [p.86].
On what grounds can the franchisor terminate the agreement?
According to [p.8], a franchisor can terminate the franchise agreement prior to its expiration for good cause, which includes 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 (no more than 30 days) to do so.
What financial requirements — net worth and liquid capital — do I need to qualify?
According to [p.139], you must have sufficient capital and net worth to invest in the opportunity, and enough funds to meet your obligations under the Franchise Agreement. Additionally, [p.6.3.2] states that the Company will evaluate your financial capacity based on criteria similar to those applied to prospective area developers.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other Pizza Factory franchisees, outlets owned by the company, and other competitive brands controlled by them [p.37, p.38]. Additionally, after the term of your agreement, the franchisor may own, operate, or license others to operate additional Pizza Factory restaurants in your Development Area without restriction, subject to certain conditions [p.40-41].
What training and ongoing support does the franchisor provide?
The franchisor provides optional training programs at a cost of $500 per day for the first two persons and $250 per day for each additional person, which can take place at an existing Pizza Factory restaurant in California or another designated location. Additionally, upon request, the franchisor may send field representatives to visit the franchisee's business to advise, consult, or train them, though this is not a guaranteed service [p.106]. For new franchises, there might also be reduced fees for existing franchisees who are in good standing [p.14].
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 shares historical financial information for 93 franchisee-owned and 1 company-owned restaurant during the Measurement Period from December 1, 2022 to November 30, 2023. However, this information does not reflect costs of sales, operating expenses, or other deductions needed to determine net income. [p.55, p.219]
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling products that the franchisor specifies or approves, which includes using specific names designated by them and preparing, serving, purchasing, and storing these products according to their recipes and standards [p.116]. Additionally, you may need to purchase certain items from suppliers designated by the franchisor, though alternate suppliers can be approved after a review process [p.24] and [p.4].