Sam And Louies
Sam and Louie's offers family-style pizza, pasta, salads, sandwiches, and beverages in a sit-down or takeout setting. Known for its New York-style pizza, the franchise provides catering options and operates as part of the quick-service restaurant industry.
Sam And Louies franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Sam and Louie's® New York Pizzeria franchise ranges from $327,500 to $468,700 [p.1]. This includes an initial franchise fee of $25,000 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee includes the cost for the initial training program, but you are responsible for travel, room and board, compensation, and other expenses incurred while attending the program. [p.30] The fee also involves an escrow arrangement in South Dakota to comply with state laws until certain obligations are met. [p.139, p.140]
What are the ongoing royalty and advertising fees?
The franchisee is required to expend a minimum of one percent (1%) of their gross receipts during each thirteen (13) week period for local advertising and promotional programs [p.62]. Additionally, the franchisee must contribute three percent (3%) of their gross receipts to the Sam & Louie's® Advertising and Development Fund [p.61], which is separate from the ongoing royalty fees.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in years but can be renewed for two additional successive terms of five years each upon fulfillment of certain conditions [p.50].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise. However, upon sale or other alienation of the Franchise by you, you or the transferee must pay a $5,000 transfer fee to the franchisor in lieu of payment of any franchise fee or other charge [p.12]. This fee covers training, supervision, administrative costs, and related expenses associated with the transfer process.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if the franchisee fails to pay all amounts when due [p.66], dies or becomes incapacitated without fulfilling certain provisions [p.89], or fails to devote their best efforts to adequately represent the Marks and the System, resulting in a materially adverse effect on them [p.24].
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?
This isn't specified in the excerpts.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training that includes both classroom and in-unit training for a minimum of two weeks or until the franchisee is fully competent to operate independently. This training must be completed successfully before commencing operation [p.30]. Additionally, during the first month of operation, the franchisor will provide one representative at the franchisee's premises for up to ten business days to assist with opening and establishing standard procedures [p.56]. Ongoing support includes making training available for managers and production employees as designated by the franchisor [p.55].
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 financial performance information if there is a reasonable basis for it and if it is included in the disclosure document [p.39]. However, this information may differ from that provided in Item 19 only under specific conditions, such as providing actual records of an existing outlet or supplementing the information with possible performance scenarios [p.39].
What am I restricted to selling, and where must I buy supplies?
You are required to operate under approved guidelines and use only products, merchandise, supplies, vendors, and suppliers that meet the specifications and standards set by the franchisor. [p.18] Additionally, you must purchase only approved and authorized supplies from the Approved Suppliers List provided in the Confidential Operating Manual. [p.26] You are not allowed to offer for sale any brand of product or use any item that has not been approved by the franchisor unless you first notify them and submit samples for examination. [p.20]