Rosatis Pizza
Rosati's Pizza offers training to open your own pizzeria restaurant, featuring pizza and casual Italian food. Known for comprehensive courses in site selection, real estate, and business establishment, it operates in the pizza and casual dining industry.
Rosatis 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 Rosati's Area Development Franchised Business ranges from $182,200.00 to $1,319,000.00, which includes the Initial Fees for the first unit and the Development Fee for all additional units [p.2]. Additionally, the initial fee for a Rosati's Single Unit Franchised Business is between $147,200.00 to $1,249,000.00, which covers the initial required opening expenses including training courses [p.2].
What is the initial franchise fee?
The initial franchise fee is zero dollars ($0.00). However, if you choose to take the courses offered by the franchisor, there will be initial course fees [p.13].
What are the ongoing royalty and advertising fees?
The ongoing fees include Royalty Fees and a Service Fee, which are deducted from the franchisee's business banking account on Thursdays following receipt of Gross Sales Reports [p.21]. Additionally, Franchisees must contribute to the Marketing Fund for advertising and promotional activities as specified [p.216].
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 renewal process beyond mentioning that Connecticut statute 42-133(f) requires a Franchisor's Intent not to renew be given six months prior to expiration if certain conditions are met [p.325].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your ownership of the franchise, but the franchisor has the right to refuse such transfers for good cause [p.339]. Additionally, upon renewal or transfer, the territory may be modified based on current demographics and standards set by the franchisor [p.60].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.345]. Additionally, the franchisor has the right to step in and take over the location if the franchisee does not sign a Successor Ongoing Franchise Agreement before the current one expires and continues to operate without a valid agreement [p.198].
What financial requirements — net worth and liquid capital — do I need to qualify?
Based on [p.340], if your unaudited financial statements show a net worth of less than $100,000.00, you may request that the initial investment and other funds be escrowed until obligations are fulfilled by the franchisor. For liquid capital requirements, [p.225] states that throughout the term, you must maintain sufficient capital calculated as the aggregate amount of cash in share capital or contributed to the business. This isn't specified in the excerpts for a specific net worth or liquid capital threshold beyond these conditions.
Do I get an exclusive or protected territory?
Based on the excerpts, you do not receive an exclusive territory. You are granted a protected area around your approved location, but the franchisee may face competition from other franchisees and from outlets owned by the franchisor in Limited Use Facilities within your Protected Area [p.59].
What training and ongoing support does the franchisor provide?
The franchisor provides an Operations Manual, specific site approval and layouts, business establishment and buildout assistance, Rosati's Training for franchisees and managers, soft opening and grand opening training, and ongoing support and industry knowledge [p.14]. Additionally, the franchisor offers support through the opening at the franchisee’s location and for at least two weeks following the opening [p.211].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2022, there were 123 franchised Rosati's Pizza restaurants open and operating. The FDD lists the names, last known home addresses, and home telephone numbers of franchisees that have been terminated, transferred, or ceased operations [p.143], but it does not specify the exact number. This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Rosati's Pizza Enterprises, Inc., does not make any financial performance representations except in specific cases. If you are purchasing an existing outlet, they may provide actual records of that outlet [p.77]. Otherwise, they do not authorize their employees or representatives to make such representations either orally or in writing [p.77].
What am I restricted to selling, and where must I buy supplies?
You are required to offer services and products as specified by the franchisor periodically, in strict accordance with their standards and specifications. You may not sell any unauthorized services or products and must discontinue those disapproved within 30 days of notice. Regarding supply procurement, you must contract, purchase, lease, or license services, equipment, furniture, fixtures, supplies, or other materials only from suppliers designated or approved by the franchisor, unless otherwise specified in the manual or previously approved in writing by them [p.30].