Pizzawalas
Pizzawala's offers fast-casual restaurants featuring fusion pizzas, primarily Indian-inspired, sourced locally. Known for superior customer service and variety of menu items, this Michigan-based franchise is suitable for those interested in the quick-service restaurant sector.
Pizzawalas franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations of a Pizzawala's® single-unit franchise ranges between $376,000 and $637,000. This includes the $25,000 franchise fee that must be paid to the company [p.1].
What is the initial franchise fee?
The initial franchise fee is part of the general operating funds and will be used as such in the franchisor's discretion [p.245]. It must be paid upon execution of the agreement, with an amount disclosed in Attachment 1 [p.94], and it is included in the total investment necessary to begin operations of a Pizzawala's® single-unit franchise, which ranges from $376,000 to $637,000, including a $25,000 franchise fee [p.1].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of the Restaurant's Net Sales, collected weekly via electronic funds transfer each Tuesday for the previous week's sales [p.94]. For advertising, there is a Marketing Fund Fee of 5% of the Restaurant's Net Sales, which is used to develop materials to advertise the System on a local, regional, or national basis and must be paid in the same manner as the Royalty Fee [p.30, p.181].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in these excerpts. However, you have the option to renew the term for one (1) renewal term of ten (10) years if certain conditions are met [p.136].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely sell or transfer your franchise without the franchisor's approval, except for good cause. Good cause includes but is not limited to specific reasons determined by the franchisor [p.241]. Additionally, the franchisor may have a right of first refusal in such situations [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if there is good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so. [p.5]
What financial requirements — net worth and liquid capital — do I need to qualify?
You must satisfy the franchisor's then-current financial requirements, which include an analysis of your net worth, debt-to-equity ratios, and capitalization. Specifically, you are required to deliver certified financial statements for the fiscal year preceding your notice of election to exercise your renewal option, prepared by a certified public accountant, supported by income tax returns, and other documentation as requested [p.136]. The exact net worth and liquid capital requirements are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The franchisor can open other Restaurants or franchise rights in enclosed malls, institutions, airports, casinos, parks, or sports arenas within your designated area. Additionally, the franchisor has the discretion to grant franchises outside of your designated area even if they compete for customers within it. [p.33]
What training and ongoing support does the franchisor provide?
The franchisor provides approximately 2 days of in-Restaurant staff training before the restaurant opens, followed by about 7 days of additional training after opening. On-the-job management training is also provided for around 4 weeks at a designated Pizzawala's® Restaurant. Additionally, the franchisor conducts initial management team training prior to opening and requires franchisees to attend Franchisee Meetings with their teams, though all related expenses are borne by the franchisee. [p.28, p.96]
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 may provide actual records of an existing outlet if you purchase one. Otherwise, they do not share financial performance or earnings projections for potential franchisees [p.44]. They also prohibit their employees and representatives from making representations about future financial performance [p.44].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale only the Menu Items and other approved food and beverage products as designated by the franchisor in writing. You may not offer or sell any other product or service at the Location without prior written consent [p.104]. Additionally, you must use suppliers designated by the franchisor for items such as fixtures, furniture, equipment, furnishings, signs, products, and supplies [p.21].