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Pizza Ranch

Pizza · 2024 FDD

Pizza Ranch offers family-style pizza and chicken restaurants at an excellent value. Known for quality food and affordability, it operates in the quick-service restaurant sector.

$2,101,500 – $2,962,000
Total investment
$30,000
Franchise fee
212
Systemwide units
3.5%
Royalty

About Pizza Ranch

Founded1981
HeadquartersOrange City
Industrygastronomy

Pizza Ranch, Inc. is an American fast casual buffet restaurant chain with more than 200 locations. It specializes in pizza and chicken. Pizza Ranch has locations in Iowa, Colorado, Illinois, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, Tennessee, North Dakota, South Dakota, Wisconsin, and Wyoming.

Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)

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Pizza Ranch franchise FAQ

How much does it cost to open one — the total initial investment?

This isn't specified in the excerpts.

What is the initial franchise fee?

The initial franchise fee is $30,000, which will be paid upon issuance of each Franchise Agreement. This fee includes a reduction or offset on account of the amount allocated to each potential site in the computation of the Development Fee as specified in Exhibit '3'. [p.104]

What are the ongoing royalty and advertising fees?

The ongoing royalty payments are due on or before the 10th day of each month for Gross Revenues received during the prior month [p.61]. Ongoing advertising costs after opening will depend on your market area and will be in addition to the marketing start-up materials' cost, as directed by the company [p.20].

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. Good cause includes but is not limited to unspecified factors [p.5]. This means you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on their discretion and the defined criteria of "good cause."

On what grounds can the franchisor terminate the agreement?

The franchisor can terminate the franchise agreement for good cause, such as the failure of the franchisee to comply with lawful provisions of the franchise agreement and failing to cure such failure within a reasonable time [p.5]. Additionally, in Minnesota, the franchisor must provide 90 days' notice of termination except in cases like voluntary abandonment by the franchisee, conviction of an offense related to the business, or failure to cure a default that materially impairs the franchisor's goodwill [p.178].

What financial requirements — net worth and liquid capital — do I need to qualify?

The franchisor's most recent financial statements must show a net worth of at least $100,000 if unaudited. For initial working capital, you are required to have at least $20,000 to cover payroll and utility costs among other expenses [p.20]. This isn't specified in the excerpts regarding minimum net worth or liquid capital requirements for a franchisee.

Do I get an exclusive or protected territory?

No, you do not receive an exclusive territory. While you have a protected territory for each Pizza Ranch ® Restaurant developed under the Franchise Agreement [p.34], and we will not operate or grant franchises in your development area using our trademark as long as the Area Development Agreement is not terminated [p.35], you may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control [p.35].

What training and ongoing support does the franchisor provide?

The franchisor provides training under the direction of Jason Lechner, who has over 20 years of experience in training and development [p.33]. Training is conducted by the franchisor's training team, with other staff members potentially assisting, and includes on-the-job training at training restaurants [p.33]. The training program can be reviewed and revised periodically, and may include initial classes via Intranet, webinar, or other electronic means [p.33].

How many franchised outlets are there, and how many have closed or been terminated?

As of December 31, 2024, there were 212 franchised Restaurants in operation out of a total of 218 system-wide Restaurants. During 2024, 6 franchised Restaurants closed, and no franchised Restaurants that had been open for less than 12 months closed after being open for at least 3 full months as of December 31, 2024 [p.44].

Does the franchisor share any financial performance or earnings information?

The franchisor does provide actual records of existing outlets if you are purchasing one. However, they do not make any financial performance representations beyond providing averages and medians from specific restaurants, which should not be considered as guarantees for future performance [p.49]. This isn't specified in the excerpts for all other forms of financial performance information or projections.

What am I restricted to selling, and where must I buy supplies?

You are generally required to purchase certain items from suppliers designated by the franchisor. However, you have the option to buy other specified equipment, supplies, food products, or services from undesignated suppliers if they meet the franchisor's quality standards [p.23, p.68]. As for sales restrictions, you may not offer or sell any products or services that do not meet the franchisor's standards and specifications [p.39], and you must operate a business similar to what is authorized by the franchisor [p.3].