Pizza World
Pizza World offers fast-food restaurants specializing in traditional and gourmet pizza, along with limited menu items. Known for its franchise opportunities in both storefront and C-store formats, Pizza World operates in the quick-service restaurant sector.
Pizza World 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 World Storefront Business is between $138,500 and $286,500. For a Pizza World C-Store Business, the range is between $92,500 and $232,500. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of business. For a Pizza World Storefront Business, it is $19,500 [p.11], and for a Pizza World C-Store Business, it is $14,500 [p.1]. This fee is nonrefundable once paid [p.64].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 2.75% of Gross Sales, paid on the twentieth day of each month for the preceding month [p.64]. For local advertising, you must spend 4% of Gross Sales up to $25,000 per month and 2% above that amount, with a maximum not exceeding 4% minus the percentage contributed to a Cooperative [p.14].
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 conditions for renewal. It only mentions that many franchise agreements do not allow unconditional renewal after the initial term expires, and you may need to sign a new agreement with different terms [p.5].
Can I sell or transfer my franchise, and what does that require?
The ability to sell or transfer your franchise depends on specific terms outlined in the agreement. Generally, modifications to your territory are not allowed without a written agreement between you and the franchisor [p.38]. Additionally, if Pizza World declines to exercise certain options related to your equipment lease, you may be able to sell it to another franchisee or with prior approval, de-brand and sell it to a non-franchisee [p.96]. This isn't specified in the excerpts for detailed procedures on selling or transferring the franchise itself.
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?
No, you do not receive an exclusive or protected territory. According to the FDD excerpts, your rights are limited to developing and operating Locations within the Development Territory, and you may face competition from other franchisees, from locations owned by the company, or from other channels of distribution or competitive brands that the company may own or control [p.38, p.39]. This isn't specified in the excerpts for a C-Store Business either; you are also not permitted to provide delivery services if you operate a C-Store Business [p.45].
What training and ongoing support does the franchisor provide?
Pizza World offers initial training to franchisees as specified [p.36]. They may also offer ongoing training or education programs on an optional or mandatory basis, depending on their discretion [p.63]. These programs can include fees for Pizza World's costs plus an administrative fee, and franchisees must complete them to Pizza World's satisfaction. Additionally, there is training provided for transferees of franchised businesses under the same terms as initial training, though a fee may apply [p.36]. The company also provides support through Wortham Development, Inc., which offers brokering services to help franchisees negotiate lower prices with suppliers and uses rebates to offset administrative costs [p.20].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not specify the exact number of franchised outlets or those that have closed or been terminated. However, it mentions that a list of current franchised businesses is provided as Exhibit D [p.51], along with a list of franchisees who had their outlets terminated, canceled, or otherwise ceased operations during the previous fiscal year or who have not communicated within 10 weeks of the disclosure document's issuance date [p.51].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if purchased, but does not make representations about a franchisee's future financial performance or past financial performance of company-owned or franchised businesses. However, the franchisor reserves the right to access and use point-of-sale system information for their Franchise Disclosure Document [p.77] and may share financial statements with other franchisees [p.213]. Additionally, franchisees are required to submit monthly financial reports including income and expenses, tax returns, and proof of payment for leasehold rentals, sales tax, and payroll taxes [p.82].
What am I restricted to selling, and where must I buy supplies?
You are not restricted in the customers to whom you may sell approved services or products or the prices at which you sell them, but all sales must occur at or from your Business site. You must purchase or lease certain equipment and supplies meeting the franchisor's specifications, and any signs, logos, emblems, or pictorial materials using their trademarks must also meet their specifications [p.22].