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1000 Degrees Pizzeria Franchise Costs & Fees

Date of Incorporation: 2014
Franchising Since: 2014
Headquarters: Galloway, New Jersey

Business Description: The Franchisor is 1000° Degrees Pizzeria Franchise, Inc. The franchised business franchisees own and operate is a 1000° Degrees Pizzeria restaurant. A restaurant makes and sells various sizes and recipes of pizza for eat-in, carryout and delivery, and soft drinks.

Franchise Offer: The franchisor offers the right to develop and operate fast casual pizza restaurants under the mark 1000° Degrees Pizzeria. Franchisees will operate a Restaurant making and selling pizzas of various sizes and recipes, and soft drinks for dine-in and carry out customers.

Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of franchisees, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of franchisees.

Training and Assistance: The franchisor provides franchisees an initial training program that covers material aspects of the operation of the restaurant. The following persons are required to attend and complete the initial training program: franchisees (or one of the owners if franchisees are a legal entity) and their designated manager (franchisees may serve as the designated manager). Franchisees are permitted, but not required, to bring one additional person who must be an owner or employee to initial training at no charge. The training will occur in Millville/Vineland, NJ, and includes both classroom and on-the-job training. Periodically, franchisees, their managers or employees must attend refresher-training programs to be conducted at our headquarters or another location the franchisor designates. Franchisees do not have to attend more than 1 of these programs in any calendar year and these programs will not exceed 2 days during any calendar year. The franchisor may require franchisees to attend an annual conference and to charge them a fee to attend.

Territory: The franchise is to be located at a location to be approved by the franchisor. Once the franchisor approves the location, a “Protected Territory” will be granted to franchisees. The franchisor will not establish or license another to establish a restaurant within a specified area (the Protected Territory), during the term of the Franchise Agreement, with the exception of Stores located in Special Venues. In the case of a restaurant which is located in a shopping center or mall, at a minimum, the Protected Territory will consist of the radius of the shopping center or mall premises. At a minimum, the Territory will consist of a: (i) 3 mile drivable distance surrounding the restaurant, as determined by the franchisor by the mapping service it designates on the date the Protected Territory is designated, if the restaurant is located in a rural area; or (ii) 5 block radius surrounding the restaurant if the restaurant is located in an urban area or in a boardwalk venue.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The franchisor will grant franchisees a successor franchise agreement for a successor term of 10 years, subject to their eligibility and compliance with certain obligations.

Obligations and Restrictions: The franchised Restaurant must always be under the direct, full-time, day-to-day supervision of a designated manager. If an individual, the franchisor may require franchisees to be the designated manager of the franchise. If the franchisor requires franchisees to be the designated manager, franchisees must request the franchisor’s consent to select another individual to replace franchisees as the designated manager. If franchisees are a corporation or other business entity, franchisees will select a designated manager for the franchise and the franchisor may require that the individual franchisees select is an owner of the franchise. Franchisees must offer the products, services and items the franchisor specifies. Franchisees may not sell any products that the franchisor has not authorized and franchisees must discontinue offering any services or products that the franchisor disapproves.

Estimated Number of Units: 15

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $29,500 $29,500
Initial Development Package $39,100 $178,000
Leasehold Improvements $42,900 $172,000
Grand Opening Advertising $5,000 $25,000
Permits $500 $5,000
Legal Expenses $500 $2,000
Insurance $750 $3,750
Travel and Living Expenses while Training $800 $3,500
Real Estate Rental Fees (inclusive of security and utility deposits) (first 3 months) $1,000 $45,000
Opening Inventory $4,000 $20,000
Additional Funds (first 3 months) $15,000 $50,000
ESTIMATED TOTAL $139,050 $533,750
Other Fees
Type of Fee Amount
Royalty Fee 6% of gross sales for the first Restaurant; 5% of gross sales for the second and each subsequent Restaurant.
Advertising Fee Up to 2% of gross sales.
Local Advertising 2% of gross sales.
Audit Cost of audit, plus 18% interest on the underpayment from the date of the underpayment.
Interest on Past Due Amounts 18% per year or the highest amount allowed by applicable law, whichever is less.
Bank Charges and Fees Charges and fees assessed by banks and third parties as a result of default in EFT payments.
Costs of Enforcement All costs, including total amount of attorney’s fees incurred as a result of any act or omission as well as fees incurred for enforcing this agreement.
Approval of Products or Suppliers Approximately $500 - $1,500
Insurance Policies Amount of unpaid premiums plus 10% of the cost of the insurance procured to reimburse the franchisor for our time and expense in obtaining the policies.
Transfer Fee $15,000
Successor Franchise Fee $15,000, non-refundable.
Local Advertising Deficiency Fee 1% of Gross Sales.
System Modifications Cost of implementation, unlimited.
Offset Fee $1,500
Additional Hourly Training Fee Franchisees shall pay the franchisor its designated hourly rate and reimburse us for all out-of-pocket expenses incurred by its training instructor, including travel expenses, food, lodging and auto rental (currently $125 per hour).
Temporary Management Assistance Currently, $600 per day, plus our expenses and costs.
Annual Conference Fee The franchisor may require franchisees to attend one annual conference each year. Franchisees will be required to pay a registration fee (currently estimated at $500) and you will be responsible for all out-of-pocket expenses incurred by franchisees in connection with franchisees’ attendance, including travel expenses, food, lodging and auto-rental.
Indemnification All costs including actual attorneys’ fees.
Liquidated Damages Aggregate Royalty Fees and Continuing Advertising Fees due to the franchisor during the 36 month period immediately preceding termination.
Taxes Amount of tax or fee.

The above information has been taken from the FDD of 1000 Degrees Pizzeria. Year of FDD: 2015

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