Pizza Schmizza
Pizza Schmizza offers pizza and other food/beverage products through three dining concepts—Pizza Schmizza, Schmizza Public House, and Schmizza Pub & Grub. Known for its franchise opportunities in the quick-service restaurant sector.
Pizza Schmizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of an individual Schmizza franchised store ranges from $203,500 to $532,250 for Pizza Schmizza, $247,500 to $564,000 for Schmizza Pub & Grub, or $345,400 to $591,500 for Schmizza Public House. This range includes the initial franchise fee and other necessary costs but does not specify exact figures [p.1].
What is the initial franchise fee?
The initial franchise fee for your first Standard Schmizza franchise is $39,000, which includes a $10,000 Franchise Coordination Fee. This fee also covers the Grand Opening Fee of $12,500 [p.10, p.24].
What are the ongoing royalty and advertising fees?
The franchisee must make minimum royalty payments, regardless of sales levels [p.4]. Additionally, there is a mandatory Branding Fee which may be used to cover various costs related to maintaining, administering, and directing advertising programs for the brand system [p.133]. The initial franchise fee represents fair consideration for establishing and operating the Franchised Store [p.181], but specific details on ongoing royalty and advertising fees beyond these general statements are not provided in the excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts, but you have the right to renew your franchise before the expiration of this initial term for successive ten-year terms without paying a renewal fee, provided all conditions are met [p.119].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires several steps as outlined in the FDD. You must first ensure the franchise store is fully open and operational [p.165]. Additionally, any transfer fee applies; it's a non-refundable amount based on the sale price or a flat rate of $16,000 per Franchise Agreement transferred [p.21]. This fee can be reduced under certain conditions, such as transferring to a management team member or an immediate family member [p.21]. Furthermore, you need consent from the lessor if there's a lease involved, and all fixtures and equipment must be in good working order before the transfer takes place [p.165].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if no acceptable site is found and approved by both parties for a store to open within the specified time period [p.45]. Additionally, RCW 19.100.180 or court decisions may supersede the franchise agreement in areas such as termination and renewal of your franchise [p.209].
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. You may face competition from other Schmizza, Schmizza Pub & Grub, and Schmizza Public House franchisees, as well as outlets owned by the company or competitive brands controlled by them [p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides basic training courses or substitute onsite training appropriate to the franchisee's knowledge and experience base [p.165]. Additionally, the franchisor offers ongoing training and site acquisition services and inspections [p.130], as well as making available data on franchisees for evaluation, service, and support purposes [p.51, p.114]. However, in cases of store transfers, no new owner training or grand opening advertising is provided [p.165].
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 can provide actual records of an existing outlet if you are purchasing one. However, they do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.62]. If you receive other financial performance information or projections, you should report it to the franchisor’s management and relevant regulatory agencies [p.62].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering items that bear the franchisor's marks only at the Franchised Store to retail customers. According to [p.144], you may purchase equipment, inventory, and supply items from the franchisor or approved vendors, but this is not a required quota; payment must be made when placing an order.