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ZPizza Franchise Cost & Fees

Date Incorporation: 1999

Franchising Since: 1999

Headquarters: California

Description: ZPizza offer franchises for the operation of ZPizza restaurants offering specialized pizza, pasta, sandwich and salad items using fresh ingredients for take-out, dine-in and delivery. The pizza menu includes 18 signature pizza recipes employing a broad selection of sauces, cheeses, fresh vegetables and other high quality ingredients.

Franchise Offer: Under a Franchise Agreement, ZPizza will grant the franchisee the right to establish and operate a restaurant at an agreed upon location. The franchisor may also offer area development agreements to qualified individuals, corporations, partnerships and limited liability companies in the United States. From time to time ZPizza will enter into franchise agreements, area development agreements and other similar arrangements in which a franchisee or area developer will open and operate restaurants at public transportation facilities, department stores, hardware stores, service station/convenience stores, toll roads, airports, military bases, shopping malls, and other non-traditional settings. The franchisor may also offer qualified applicants the right to become a ZPizza development agent, within a defined geographic area. The development agent will advertise for new franchisees on the franchisor's behalf and develop and assist franchisees who are operating within the development agent's assigned area.

Financial Assistance: The franchisor does not offer any direct or indirect financing.

Training and Assistance: The training program consists of six weeks of instruction concerning all aspects of the operation and management of the franchised business. The training will take place at a designated location or at company-owned restaurants in Southern California, at the franchisor's headquarters, or at another location designated by the franchisor. The training program is four weeks for general managers, and two weeks for kitchen managers. The training is provided free of charge for up to two individuals.

In addition, a designated number of training staff will be sent to the franchised location for a period of three days prior to opening and seven days following the opening of the restaurant. The franchisor may require that the franchisee and/or their designated manager(s) attend such further training programs prescribed from time to time.

Before opening the restaurant, the franchisor or development agent will help with site location, specifications and layouts for the restaurant.

The franchisee also maintains a mentor program for ongoing training and assistance. The mentor program will allow franchisees to receive continuing training, as needed, from one of the restaurants or restaurant managers. This additional training is not required but is provided for the benefit of the franchisee.

Territory: The protected geographical territory (exclusive territory) will be a radius not to exceed one mile surrounding the franchised restaurant. During the term of the franchise agreement the franchisor will not, without the franchisee's consent, establish or franchise another to establish a ZPizza restaurant at any location to solicit or accept orders that falls within the exclusive territory under the franchise agreement except as otherwise provided in the franchise agreement.

Term of Agreement and Renewal: The term of the franchise agreement is 10 years and can be renewed for one additional 10-year period.

Obligations and Restrictions: The franchisee must at all times directly supervise the operation of the restaurant or may employ a manager for this purpose. ZPizza recommends that the franchisee conducts direct, on-premises supervision of the restaurant and not delegate this duty to third parties. The franchisee must offer for sale and sell only those products and services that have been approved. The franchisee may not offer for sale any products or perform any services that have not been authorized or approved.

Total Number of Units: 87 units

Investment Tables:

Initial Investment:

Expenditures Low High
Initial franchise fee $30,000 $30,000
Leasehold improvements, construction costs $80,000 $100,000
Lease payments and other rental expenses $12,000 $24,000
Furnishing equipment & signage installed $55,000 $55,000
Travel & living expenses while training $2,500 $5,000
Pre-opening expenses $7,500 $10,000
Grand opening advertising $2,500 $2,500
Opening inventory $4,000 $6,000
Initial operating capital $12,000 $12,000
Additional funds (3 months) $5,000 $50,000
Total $235,500 $319,500

 

Ongoing fees:

Name of fee Amount
Royalty fee 6% of gross sales
National advertising fund 2% of gross sales
Local advertising 1% of gross sales
Renewal fee $5,000
Refurbishing of restaurant Not to exceed $20,000
Application service provider fees $85 per month
POS system service and upgrades $1,000 per year (approximately)
Monthly inventory $8,000 - $10,000

 Date of FDD: 2009

The above information has been taken from the UFOC/FDD of ZPizza

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