Rikos Pizza
Rikos Pizza offers full-service or fast-casual locations serving premium thin-crust pizza, salads, wings, and more under the Riko's brand. Known for "old school tavern pie," this franchise operates using proprietary recipes and trademarks in the casual dining industry.
Rikos Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Riko's ® Pizza full-service restaurant franchise ranges from $1,005,300 to $1,398,300. This includes $45,000 that must be paid to the franchisor and/or its affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on whether it's for a single restaurant or part of a multi-unit development. For the first restaurant in a potential multi-unit deal, the fee is $45,000 [p.188]. If this is not a multi-unit deal, the standard initial franchise fee is $45,000, but it can be reduced to $36,000 for subsequent restaurants [p.110].
What are the ongoing royalty and advertising fees?
The franchisee must pay a continuing weekly royalty fee of six percent (6%) of Gross Sales. Additionally, there is an obligation to spend at least $15,000 on a grand opening marketing and advertising campaign, though this is specific to the initial setup rather than ongoing expenses. [p.127] [p.91]
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The duration of the initial franchise agreement and the renewal process are not detailed in the provided FDD excerpts.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the franchisor's written consent. The transfer fee is either 50% of the current initial franchise fee if transferred to a new franchisee, or 20% if transferred to an existing franchisee within the system [p.196, p.139]. Additionally, all transfer documents must be completely executed and submitted for approval [p.195].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement if you are not in full compliance with all of the terms and conditions of the Multi-Unit Development Agreement and all of the Franchise Agreements signed under it, according to [p.41]. This isn't specified in the other excerpts provided.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for qualifying as a franchisee. However, it does mention that you must have provided recent financial statements and agree to maintain sufficient working capital to fulfill your obligations [p.115]. Additionally, the financial performance representations are based on historical data but do not include all operating expenses [p.54], so consulting with a financial advisor is recommended [p.54].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.41]. Additionally, your designated territory is non-exclusive due to the company's right to establish restaurants at non-traditional sites within your designated area [p.39, p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial mandatory training program lasting approximately two weeks for up to four trainees, including the franchisee, General Manager, and Kitchen Manager. This training is conducted at their corporate headquarters or another designated location [p.35]. Additionally, ongoing support is implied through the mention of services and support potentially being in question due to the franchisor's financial condition [p.4], though specific details are not provided in the excerpts for ongoing support beyond initial training.
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 financial performance representations based on historical data from four franchised outlets, but these do not reflect all operating expenses. Additionally, if purchasing an existing outlet, actual records of that outlet might be provided [p.54]. However, the franchisor does not make any other financial performance or earnings information representations unless specifically authorized by the franchisee to disclose such information [p.134] and even then, it is subject to the franchisor's discretion [p.134]. This isn't specified in the excerpts for new franchises without an existing outlet purchase scenario.
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the menu items, products, and services expressly approved in writing by the franchisor [p.46]. Additionally, you must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment, and other products used or offered for sale at the Restaurant solely from suppliers who meet the franchisor's standards and specifications [p.24]. The list of approved products and suppliers is subject to change over time [p.24].