Snappy Tomato
Snappy Tomato Pizza Company offers franchises for pizza, hoagie sandwiches, chicken products, and salads with a total investment of $120,500 - $351,000. Known for carry-out, dine-in, and delivery services, it operates in the quick-service restaurant industry.
About Snappy Tomato
Snappy Tomato Pizza is a pizza chain that started in Fort Mitchell, Kentucky, and has over 60 locations in the US. Its headquarters are in Burlington, Kentucky. The chain specializes in pizza, but also serves calzones, hoagies, salads, pasta, dessert and appetizers.
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Snappy Tomato franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment can vary significantly depending on several factors. It includes an initial franchise fee of $25,000 [p.7], potential additional funds for startup expenses estimated by the Company [p.13], and costs related to equipment, fixtures, and other fixed assets which range up to $250,000 [p.13]. This isn't specified in the excerpts.
What is the initial franchise fee?
The initial franchise fee is $25,000 when you sign the Franchise Agreement [p.7]. This fee includes a credit for any application fee paid [p.7].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a continuing, non-refundable weekly fee equal to five percent of the Gross Sales, with a minimum of $400 per week [p.52]. Additionally, franchisees must pay an Advertising Fund Fee equal to 3.5% of their weekly Gross Sales [p.68].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts, but you may have up to three additional renewal terms of five years each if you choose to renew. To renew, you must give written notice between 6 and 12 months before the end of the initial or any Renewal Term. [p.50]
Can I sell or transfer my franchise, and what does that require?
According to [p.79], the franchisor may sell, transfer, or assign this Agreement and any rights or duties hereunder to any third party. However, whether you can sell or transfer your franchise is not specified in these excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if no acceptable site is found and approved within 90 days from signing the Franchise Agreement [p.8], or if the franchisee is unable to satisfactorily complete the required training program [p.8]. Additionally, termination may occur if a location is not designated within 90 days of agreement execution and the franchisor disapproves the location, or if the franchisor determines the franchisee has failed to satisfactorily complete the initial training program [p.52].
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?
Yes, you receive an exclusive territory. You have the right to operate a Snappy Tomato Pizza Restaurant at a specific location and are protected from competition by other franchisees within your designated area [p.43]. However, you must apply separately for additional locations and obtain express approval from the Company [p.21].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for new franchisees, which is described in detail on page [p.17]. Additionally, the Managing Owner must designate one of their owners to perform day-to-day operational tasks, and this individual must devote full time and effort to managing the restaurant, though they may with prior written consent manage other Snappy Tomato Pizza Restaurants franchised to the same owner or an affiliate. This isn't specified in the excerpts for ongoing support beyond the initial training.
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024 and 2023, the Company had a total of 43 franchised locations, including company-owned and operated pizza carryout restaurants. This information is specified on page [p.118]. The excerpts do not provide details about closed or terminated outlets specifically.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if you are purchasing one, but they do not make any representations about a franchisee's future financial performance or past performance of company-owned or franchised outlets. Additionally, financial performance information that differs from what is included in Item 19 may be provided only under specific conditions [p.30].
What am I restricted to selling, and where must I buy supplies?
You are not limited in any manner regarding the customers to whom you may sell your products and services. However, all fixtures, furnishings, signs, equipment, uniforms, inventory, supplies, products, ingredients, materials, and other property or services used in the operation of the Restaurant must be purchased from designated and/or approved suppliers provided by Franchisor [p.14]. This includes items that you may wish to purchase from an unapproved supplier; such purchases require prior written approval from Franchisor [p.14].