Pizza Inn
Pizza Inn offers various restaurant formats including Buffet, Delivery-only, Ghost Kitchen, and Express locations, focusing on pizzas, salads, and other food items. Known for quick-service dining options, Pizza Inn operates in the fast-casual restaurant industry.
About Pizza Inn
Pizza Inn is a Dallas-based restaurant chain and international food franchise, specializing in American-style pan pizza, pasta, and side dishes, owned by Rave Restaurant Group.
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Pizza Inn franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Pizza Inn Buffet Restaurant ranges from $412,000 to $1,445,000. This includes approximately $50,000 to $70,000 that must be paid to the franchisor or its affiliates [p.1]. For other restaurant types like Delco Restaurants and Express Restaurants, the range is from $200,000 to $510,000 with approximately $20,000 to $30,000 or $15,000 to $25,000 respectively that must be paid to the franchisor or its affiliates [p.1]. Ghost Kitchen Restaurants have a lower initial investment range of $11,000 to 40,000 with approximately $10,000 to $20,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the type of restaurant. It is $30,000 for a Pizza Inn Buffet Restaurant, $10,000 for a Delco, $5,000 for an Express, and there is no fee for Ghost Kitchen Restaurants [p.10]. This fee is fully earned upon payment and is not refundable [p.10].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Gross Sales, payable weekly by Friday for sales from the preceding Sunday [p.65]. There is also a National Advertising Fund (NAF) payment, but the exact amount isn't specified in these excerpts. The NAF contribution may be reduced under certain conditions as outlined in the FDD [p.113].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement and whether it can be renewed are not specified in the excerpts. This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot sell or transfer the Restaurant or any underlying franchise agreement [p.115]. However, if there is a sale of certain ownership interests in you or the Restaurant, it will be treated as a constructive transfer, and a transfer fee may apply [p.14].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
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?
This isn't specified in the excerpts. The FDD indicates that you do not receive an exclusive territory and may face competition [p.31, p.32]. However, under certain circumstances, a protected area might be granted, but this is subject to your compliance with the Development Agreement and other conditions [p.33].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial mandatory training program without additional fees [p.14], which may include classroom instruction, virtual instruction, and hands-on demonstrations related to the Systems and other programs [p.28]. The franchisor also offers additional training classes and assistance from their staff and industry experts [p.14]. While not always mandatory, any failure to maintain performance standards could require participation in additional training at the franchisee's expense if such fees are implemented in the future [p.28].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that as of June 25, 2023, there were a total of 184 franchised Pizza Inn restaurants (152 domestic plus 34 international). However, the number of closed or terminated franchises is not specified in the provided excerpts. [p.168] discusses license fees and their amortization but does not provide information on the closure or termination of franchises.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor is permitted to share financial performance information under certain conditions. According to [p.41], the franchisor can provide actual records of existing outlets or supplement the information in Item 19 with additional details about potential performance at a specific location or under particular circumstances. Additionally, [p.83] indicates that the franchisor may share historical revenue and expense information with prospective franchisees to their best interest.
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale and selling only the products, services, and brands designated in the Manual or otherwise in writing. You must offer all items that are designated as mandatory and may sell some optional items. The franchise agreement also requires you to use authorized ingredients and follow specific recipes. Regarding supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers they designate [p.3], and many of your initial and ongoing purchases are restricted in some manner [p.19].