Arizona Pizza
Date Incorporation: 2002
Franchising Since: 2004
Headquarters: Glendale, Arizona
Description: The Franchisee will operate a casual dining restaurant that features gourmet-style pizza and pasta, a variety of appetizers, traditional sandwiches, wraps and melts, half-pound hamburgers and salads. The restaurant also features a bar and requires a full liquor license.
Franchise Offer: The franchisor grants franchises for casual dining restaurants which offer primarily pizza, Italian specialties and complementary food and beverages, including alcoholic beverages. Arizona Pizza Co., Inc. offers area development agreements to persons who have the desire, financial strength and managerial capability to develop and operate multiple restaurants. Under an area development agreement, they must open a specified number of Arizona restaurants within a defined geographic area and an agreed upon a development schedule.
Financial Assistance: Arizona Pizza does not offer direct or indirect financing.
Training and Assistance: The initial training program is conducted for the franchisee, the general manager, and the kitchen controller. Arizona Pizza provides more than 100 hours of training at an Arizona Pizza company-owned restaurant or training facility. The franchisee must attend more than 40 hours of office/classroom study and more than 83 hours of on-the-job training; the general manager must attend approximately 30 hours of office/classroom study and 95 hours of on-the-job training; crossover training consists of up to 150 hours of on-the-job training for the kitchen controller. During the first two-week period of the operation of the franchisee's first Arizona Pizza franchise restaurant, Arizona Pizza provides two to four employees or representatives to provide training at the restaurant.
Territory: The franchisee will receive a protected territory which will be delineated by the main streets and highways. The protected area depends upon the demographics of the location. Arizona Pizza will not establish either a company owned Arizona Pizza restaurant or another Arizona Pizza franchise restaurant franchisee within the protected territory if once the franchisee is in full compliance with the methods, procedures, standards and specifications required by Arizona Pizza in the operations manual or otherwise in writing, and the franchisee is not in violation of any of the terms of the franchise agreement.
Term of Agreement and Renewal: The term of the franchise agreement is 15 years which can be renewed for an additional 10 years, if the franchisee is in good standing and complies with the conditions.
Obligations and Restrictions: Arizona Pizza does not require that the franchisee personally supervises the franchise restaurant. It must be under the direct, on-premises supervision of the franchisee or a manager who has successfully completed the required training. If the franchisee is a partnership, corporation or limited liability company, each partner, shareholder or member must agree to be bound by the terms and conditions of the franchise agreement, and must designate one person who will have the power to settle all disputes between the owners and bind the entity in its dealings with Arizona Pizza.
The area development agreement requires the developer to exert substantially full-time efforts to the venture. The franchisee must sell or offer for sale only those items, products and services expressly approved by Arizona Pizza. The franchisee must sell or offer for sale all menu items, products and services required by Arizona Pizza.
Total Number of Units: 10 units
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $35,000 | $35,000 |
| Equipment | $100,000 | $225,000 |
| Furniture & fixtures | $40,000 | $50,000 |
| Signs | $10,000 | $30,000 |
| Alcohol beverage license | $5,000 | $5,000 |
| Professional fees | $10,000 | $25,000 |
| Travel, salary, living expenses & pre-opening salaries | $5,000 | $10,000 |
| Real estate & leasehold improvements | $150,000 | $414,000 |
| Opening inventory | $8,000 | $12,000 |
| Miscellaneous opening expenses | $6,000 | $15,000 |
| Insurance | $12,000 | $14,000 |
| Grand opening advertising | $5,000 | $5,000 |
| Additional funds (3 months) | $14,000 | $30,000 |
| Total | $400,000 | $865,000 |
Ongoing fees:
| Name of fee | Amount |
|---|---|
| Royalty fee | 4% of gross sale |
| Advertising | Currently 2.5% of gross receipts |
| Additional training (first week after opening) | Travel and lodging expenses plus all other expenses incurred by Arizona Pizza in providing the training after the initial training program |
| Renewal fee | $5,000 or 25% of then-current standard fee initial franchise fee, whichever is greater |
Date of FDD: 2008
The above information has been taken from the UFOC/FDD of Arizona Pizza
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