Street Pizza
Street Pizza offers casual dining restaurants with a unique bottomless pizza menu, serving lunch and dinner in full-service settings. Known for its innovative concept by Gordon Ramsay, it operates in the fast-casual restaurant sector.
Street 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 Street Pizza restaurant ranges from $1,833,500 to $3,403,333 under an area development agreement. This includes costs such as required purchases or leases and ongoing expenses [p.26], along with other expenses like the site evaluation fee and initial franchise fees [p.1, p.108].
What is the initial franchise fee?
The initial franchise fee is $50,000 when you sign the Franchise Agreement to develop a new Restaurant [p.104]. This fee is considered fully earned and non-refundable upon payment [p.11].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a continuing monthly payment that the franchisee must make to the franchisor, as detailed on page [p.107]. Additionally, the franchisee is required to contribute to the Brand Fund for marketing and advertising purposes, with the specific contribution rate subject to adjustment by the franchisor, as explained in pages [p.124] and [p.32].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you need to maintain a tangible net worth of no less than Two Million Dollars ($2,000,000) throughout the term [p.134]. This isn't specified in the excerpts regarding liquid capital requirements.
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.36]. However, under an Area Development Agreement, you can develop and operate multiple restaurants within a defined Development Territory, though this is not an exclusive territory, as the franchisor retains the right to establish or operate additional restaurants in the area [p.80].
What training and ongoing support does the franchisor provide?
The franchisor provides initial on-site training by an 'Opening Crew' consisting of up to four team members for approximately 16 hours of classroom training and 40 hours of on-the-job training [p.24, p.35]. This training occurs before or after the grand opening, depending on progress made by the franchisee's staff [p.24]. Additionally, the franchisor requires ongoing attendance at continuing training programs and seminars to maintain Brand standards [p.71]. Franchisees must also participate in optional training offered by the franchisor, for which they pay a specified fee and cover all related costs [p.71].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The FDD does not provide a specific number of franchised outlets or those that have closed or been terminated. [p.54] mentions an exhibit with information about franchisees but does not give numerical details on current or former outlets.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to 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 the past performance of company-owned or franchised outlets. They also do not authorize their employees or representatives to make such representations either orally or in writing [p.52].
What am I restricted to selling, and where must I buy supplies?
You may be required to purchase certain items from approved or designated suppliers, which may include the franchisor or its affiliates [p.44]. Additionally, you are not allowed to ship Street Pizza products or distribute them through wholesale channels without prior written consent [p.44]. As for sales, you must comply with the standards for selling products within your Designated Area and may be restricted from selling products from outside the Development Territory to customers within it [p.39, p.37].