Boston's The Gourmet Pizza
Date Incorporation: 2001
Franchising Since: 1995
Headquarters: Dallas, Texas
Description: Boston's The Gourmet Pizza is a restaurant like no other. Boston's features many unique traits that set it apart from other dining venues ... it's all about the food, the people and the heritage.
Boston's is a full-service, pizza-themed, casual dining restaurant and sports bar offering incredible gourmet pizzas (18 varieties!) and gourmet pasta, along with a wide variety of other great dishes, such as wings, ribs, burgers, entree size salads, sandwiches and the largest kid's menu in the casual dining category. Boston's offers a contemporary, sit-down family dining atmosphere with a separate sports bar customized with local team memorabilia. The result is a fun, high-energy setting for families and sports enthusiasts alike.
Franchise Offer: Boston Pizza restaurants, LP grants franchises to qualified candidates for the operation of a Boston's The Gourmet Pizza restaurant. The franchisee willsign the MRDA (multi-restaurant development agreement) under which the franchisee will be granted the right to sign one or more franchise agreements.
Financial Assistance: Neither Boston Pizza restaurants nor any affiliate offers direct or indirect financing to the franchisee. Boston Pizza restaurants may, however, choose to assist the franchisee in developing a business plan and presenting the business plan on his/her behalf once he/she has signed a franchise agreement or MRDA. Boston Pizza restaurants may also introduce the franchisee to a financial institution or third party financing source after the MRDA or franchise agreement is signed.
Training and Assistance: The initial training program is mandatory for the operating principal (if different from general manager), general manager and kitchen manager. The first six weeks of training will be held at Boston Pizza restaurants offices and corporate training center in Dallas, Texas, and will then be followed by a one-week program presented at Boston Pizza restaurants training facility in Dallas, Texas.
An investor orientation program, lasting 10 to 15 weeks, is mandatory for all non-operating franchisee principals and is held at Boston Pizza restaurants offices and corporate training center in Dallas, Texas. Up to five franchisor employees will provide on-site pre-opening and opening supervision and assistance for at least three weeks. Boston Pizza restaurants have the right to charge $350 per Boston Pizza restaurants per day for this on-site training. Boston Pizza restaurants may coordinate and conduct periodic mandatory training programs for its network of franchisees.
Experienced trainers partner with the franchisees to offer ongoing individualized training and support. The team uses various training methods to increase knowledge around operations, functional roles within the restaurant, POS features and management fundamentals.
Franchisees will receive support on an individual and regional level in the form of highly targeted print and broadcast advertising, media buying, public relations and promotions. Field Marketing Managers support the franchisees with all marketing initiatives and help implement localized programs.
Territory: Provided that the franchisee remains in full compliance with their obligations under the franchise agreement, the franchisor will not begin operation of, or grant a third party the right to begin operation of, a restaurant at a physical premises within a minimum one-mile radius of the franchised restaurant, unless such location is within the geographic boundaries of a statistical metropolitan area with a population greater than one million persons. made by other restaurants (whether franchised or operated by Boston Pizza Restaurantsor its affiliates) within the franchised territory are permitted.
Term of Agreement and Renewal: The term of the Franchise Agreement is ten years, which can be renewed for an additional ten years.
Obligations and Restrictions: The franchise agreement provides that all times after the date of the opening of the restaurant, it must be under the direct, on-premises supervision of the franchisee or an operating principal, who is a general partner or owns at least 10% of the voting shares of the restaurant, designated by the franchisee and approved by Boston Pizza restaurants. A general manager must work on a full-time basis in the management and operation of the restaurant and will be the full-time general manager of the restaurant on a day-to-day basis. The franchise agreement provides that the franchisee must offer, and may only offer, the products and services that Boston Pizza restaurants authorize in the manuals.
To be considered as a candidate for a Boston's franchise, the individual candidate (or the partnership) must be able to demonstrate at least $1,500,000 in net worth and at least $600,000 in liquid capital to invest in this business. Conversion requirements may be less.
Total Number of Units: 350 units in Canada; 50 units in the US and Mexico by year end 2010
Total Number of franchises Units: 43 franchised units by year end 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Franchise fee | $50,000 | $50,000 |
| Site investigation report | $2,000 | $5,000 |
| Geotechnical report | $2,500 | $5,000 |
| Civil engineer | $15,000 | $35,000 |
| Architectural | $35,000 | $55,000 |
| Land costs | Not included | |
| Building permits & licensing | $5,000 | $30,000 |
| Building cost | $1,100,000 | $1,500,000 |
| Site work/improvements | $0 | $411,000 |
| Signage | $43,500 | $69,000 |
| Furniture, fixtures & equipment | $440,000 | $480,000 |
| Millwork | $110,000 | $130,000 |
| POS equipment & computer | $45,000 | $50,000 |
| Initial training expenses | $45,000 | $76,000 |
| Legal & accounting | $10,000 | $30,000 |
| Inventory | $22,000 | $28,000 |
| Manager's salary | $29,000 | $35,000 |
| Additional funds (3 months) | $50,000 | $75,000 |
| Total | $2,004,000 | $3,064,000 |
Ongoing fees:
| Name of fee | Amount |
|---|---|
| Royalty fee | 5% of gross sales |
| National cooperative advertising fund | 3% of gross sales |
| Minimum local marketing expenditure | 1% of gross sales |
| Training expenses | $50 per person |
| Financial statements | Variable |
| Meeting expenses | Variable |
| Refurbishment costs | Variable - Not more often than once every seven years |
| Renewal fee | 25% of the then-current initial franchise fee |
Date of FDD: 2008
The above information has been taken from the UFOC/FDD of Boston's The Gourmet Pizza
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