Pizza Guys
Pizza Guys franchises offer takeout and delivery pizza along with other foods and beverages from branded stores. Known for quick service and convenience, it operates in the fast-casual dining sector.
Pizza Guys franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open the first location under a Multi-Unit Development Agreement (MUDA) ranges from $230,100 to $484,050. This includes costs such as leasehold improvements and opening inventory [p.18, p.19, p.18].
What is the initial franchise fee?
The initial franchise fee is $25,000 for the first Pizza Guys® store, as well as a franchise fee of $15,000 for each additional store [p.9]. However, this fee does not specify an exact amount and can vary if the company is not granting new franchises, in which case the fee would be $12,500 [p.81, p.13].
What are the ongoing royalty and advertising fees?
The FDD excerpts do not specify ongoing royalty or advertising fees beyond the initial six-month period for advertising the opening of the store. For the first six months, you are required to spend up to $7,500 each month on advertising. There is no mention of ongoing advertising fees after this initial period [p.25, p.65]. Royalty fees are not discussed in these excerpts either [p.14, p.98].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide information on the length of the initial franchise agreement or its renewal terms beyond mentioning that a Notice of Renewal/Extension must be given 180 to 270 days before expiration [p.78].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires approval from the franchisor [p.81]. After approval, you must provide a nonrefundable Transfer Fee (equal to ½ of the current Initial Franchise Fee or $12,500 if no new franchises are being granted), have your proposed buyer sign the franchise agreement and related documents, and complete Phase I training within two weeks [p.81].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which is defined as the failure to substantially comply with lawful requirements after being given at least 60 days' notice and a reasonable opportunity to cure [p.75]. Additionally, immediate termination without an opportunity to cure is possible if certain events occur, such as non-compliance with fees or terms of the agreement, food safety concerns, or actions that harm the brands' reputation [p.104].
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 receive an exclusive territory where Pizza Guys will not establish another franchised or company-owned store serving pizza within a two-mile radius of your store premises [p.28]. However, this exclusivity does not extend to walk-in customers from outside the area or delivery services for call-in customers [p.28]. Additionally, you are not allowed to directly solicit customers outside of your exclusive area without permission [p.28].
What training and ongoing support does the franchisor provide?
The franchisor provides an Initial Training Program consisting of two phases: Phase I, which is conducted at a location selected by the franchisor, and Phase II, which takes place at the franchisee's store after opening. Phase I continues until one person signing the agreement or the general manager is certified. Phase II lasts for five days with eight hours of training per day. The franchisor also reserves the right to offer additional training courses or refresher courses, though this is not mandatory. Franchisees are responsible for training their employees and may purchase additional training if needed, which must be pre-paid. [p.59]
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that there are 75 existing franchised outlets, but it does not specify the number of closed or terminated outlets [p.48]. This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Pizza Guys, does not make any financial performance representations other than the preceding one. However, if purchasing an existing outlet, actual records of that outlet might be provided [p.45]. Additionally, the franchise disclosure document may include financial performance information if there is a reasonable basis for it and if such information is included in Item 19 [p.42].
What am I restricted to selling, and where must I buy supplies?
You are restricted from operating a similar business during the term of the franchise [p.3]. Regarding supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than purchasing from other sources [p.3].