Toppers Pizza
Toppers Pizza offers on-premises, carry-out, and delivery of pizza, breadsticks, and other premium food products. Known for its quality pizzas and development opportunities, Toppers operates in the quick-service restaurant sector.
Toppers Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to develop and begin operations of a new Toppers Pizza franchised restaurant ranges from $510,000 to $690,285. This includes a mandatory payment of between $32,500 and $45,000 to the franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the agreement type. For standard Franchise Agreements, it is $30,000 unless you qualify for and participate in the Sponsorship Program or sign a Purchase Agreement, where it is waived [p.13, p.26]. If you enter into an Area Development Agreement, the initial franchise fee is reduced to $20,000 for the second through fifth agreements and $15,000 for the sixth or subsequent ones, with a 50% reduction if you participate in the Sponsorship Program [p.26].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5.5% of Gross Sales [p.119]. The advertising fee is up to 5.0% of gross sales, with rates varying between 3% and 3.3% depending on the fiscal year [p.102].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not contain information about the duration of the initial franchise agreement or the renewal process.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer ownership of your franchise, but it requires good cause as determined by the franchisor [p.5]. Additionally, if the transfer involves a controlling interest, several conditions must be met, including transferring all restaurants developed under the agreement, assuming all obligations, paying any amounts owed to the company, executing new agreements, and agreeing to post-termination covenants [p.204]. A $10,000 fee is also required for the transfer of ownership [p.204].
On what grounds can the franchisor terminate the agreement?
According to [p.5], a franchisor can terminate the franchise agreement prior to its expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and curing such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so.
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 minimum net worth or liquid capital requirements for franchisees to qualify. However, it emphasizes that franchisees must maintain sufficient working capital reserves at all times [p.111] and have the necessary funds to fund their business and living expenses during the start-up phase [p.305].
Do I get an exclusive or protected territory?
No exclusive territory is provided. You may face competition from other franchisees, outlets owned by the company, and other channels of distribution or competitive brands controlled by the company [p.46]. Additionally, after the term expires, the company retains the right to establish Restaurants in your previously developed area [p.199].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training and opening support for up to 7 to 28 days before, during, and immediately after the opening of a new restaurant (or 7 to 14 days if you or an affiliate already operate a Toppers Pizza restaurant). Additionally, the franchisor offers ongoing support during the first two years of operation, with your Franchisee Sponsor receiving 36.36% of the continuing royalty fees due from you during this period [p.35].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 29, 2024, there were 52 franchised Toppers Pizza restaurants open and operating. The FDD does not specify the number of franchised outlets that have closed or been terminated as of that date.
Does the franchisor share any financial performance or earnings information?
The franchisor, Toppers Pizza LLC, does not make any financial performance representations except for the possibility of providing actual records from an existing outlet if a franchisee is purchasing one. However, they may provide such information upon reasonable request and based on a reasonable basis [p.61]. This isn't specified in the excerpts for all scenarios, but it indicates that direct financial projections or guarantees are not provided [p.58].
What am I restricted to selling, and where must I buy supplies?
You are required to offer certain goods and services as specified in the Operations Manual, which can be changed by the franchisor [p.49]. You must use and purchase Authorized Products and Services from designated suppliers or those approved in writing by the franchisor [p.30], including items like food products, ingredients, uniforms, and equipment [p.29].