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NYPD Pizza Franchise Cost & Fees

Date Incorporation: 2001

Franchising Since: 2004

Headquarters: Florida

Description: An NYPD restaurant offers the highest quality pizza products and Italian restaurant menu items made of the freshest ingredients. All pizzas are hand-tossed, made with unique pizza dough, high quality cheese, and a specially-spiced tomato sauce, finished with fresh toppings, and baked in a brick oven. Other menu items include appetizers, pasta dinners, other Italian cuisine, fresh salads, specialty hot hero sandwiches, and a full line of tempting desserts.

Franchise Offer: NY Pizza Development franchises the right to operate a pizza restaurant specializing in New York style pizzas, pizza products, pasta dishes, salads, heroes, and Italian menu items.

There are 3 different sizes of NYPD System restaurants.

  • An NYPD "Sub Station" restaurant has a menu limited to pizza, appetizers, and salads. The "Sub Station" is a takeout/delivery restaurant and limited seating.
  • The NYPD "Metro Unit" restaurant has a full menu of pizza, pastas, entrees, appetizers, salads, and desserts. Beer and wine is required. The Metro Unit is a full service restaurant with seating. 
  • An NYPD "Precinct" restaurant is likely to be located as an anchor store for a mall or strip mall, or it may be a free standing building. The NYPD "Precinct" is a full service restaurant with delivery and has a menu that also includes pizzas, pastas, entrees, appetizers, salads, desserts, and cappuccino. Beer and wine is required but the franchisee may have a full liquor license or game room in the Precinct. The Precinct full service restaurant has table service and ample seating.

All NYPD restaurants must offer delivery service.

The franchisor also offers a development agreement, which grants the right to develop multiple NYPD System restaurants in a specified territory.

In some markets the franchisor may designate an "area representative" to provide some of the training and a portion of the franchisor's system support services to franchisees in an assigned area.

Financial Assistance: NY Pizza Development does not offer direct or indirect financing.

Training and Assistance: The franchisor will provide training NYPD academy program for the franchisee and up to 5 of their managers at the NYPD offices in Orlando, Florida or other designated approved training store. The NYPD academy will be up to four weeks in duration.

The franchisor will provide management assistance at the approved opening of the restaurant.

After opening, the franchisor will:

  • provide the franchisee with approved marketing plans and materials for purchase, 
  • provide guidance and advise the franchisee of changes in the business, authorized menu items and services, or specifications, standards or operating procedures prescribed for the NYPD system, 
  • provide guidance in the establishment of administrative, bookkeeping, accounting, insurance, and general operating procedures  prescribed for the NYPD system businesses, 
  • provide refresher or continuing training courses.

Territory: The franchisee will establish their restaurant at the approved location with an assigned non-exclusive territory.

Term of Agreement and Renewal: The term of the franchise agreement is 10 years. The franchisee has the right to renew for two additional 5-year terms.

Obligations and Restrictions: If the franchisee is an individual, they must directly supervise the franchised business on its premises. If the franchisee is a corporation or other form of legal entity, such as a limited liability company, the supervision must be provided by the owner as well as a competent manager who has been approved by the franchisor and has successfully completed the manager's training program at NYPD academy. The franchisee must offer the menu items that are designated by the franchisor as required for all franchisees.

Total Number of Units: 11 units

Investment Tables:

Initial Investment:

Sub station

Expenditures Low High
Initial franchise fee $25,000 $25,000
Travel and living expenses while training $1,000 $3,500
Real estate improvements $115,000 $155,000
Architectural fees $19,000 $25,000
Equipment $40,000 $60,000
POS register system $19,000 $23,000
Small wares / uniforms $6,112 $8,000
Signage & graphics $11,000 $15,000
Millwork $19,000 $23,000
Lighting $2,500 $3,925
Furniture $0 $700
Oven $29,400 $29,400
Opening food and paper order $4,500 $7,500
Advertising / grand opening – 3-6 months $3,500 $5,000
Additional funds (3 months) $5,000 $10,000
Total $300,012 $394,025

 

Metro unit

Expenditures Low High
Initial franchise fee $30,000 $30,000
Travel and living expenses while training $3,000 $5,000
Real estate improvements $161,000 $217,000
Architectural fees $19,000 $25,000
Equipment $82,500 $90,000
POS register system $21,000 $23,000
Small wares / uniforms $9,621 $11,500
Signage & graphics $11,800 $19,000
Millwork $30,450 $43,000
Lighting $3,925 $4,500
Furniture $5,000 $16,400
Oven $29,400 $29,400
Opening food and paper order $7,500 $10,500
Advertising / grand opening – 3-6 months $3,500 $5,000
Additional funds (3 months) $5,000 $10,000
Total $422,696 $544,300

 

Precinct

Expenditures Low High
Initial franchise fee $35,000 $35,000
Travel and living expenses while training (owners and managers) $3,000 $6,000
Real estate improvements $287,500 $387,500
Architectural fees $22,000 $30,000
Equipment $117,977 $130,000
POS register system $21,000 $25,000
Small wares / uniforms $13,000 $16,000
Signage & graphics $11,800 $20,000
Millwork $37,100 $49,000
Lighting $5,925 $6,900
Furniture $11,610 $25,500
Oven $29,400 $29,400
Opening food and paper order $10,500 $15,000
Advertising / grand opening – 3-6 months $3,500 $5,500
Additional funds (3 months) $5,000 $15,000
Total $614,312 $795,800

 

Ongoing fees:

Name of fee Amount
Royalty fee 6% of gross sales
Advertising fund contribution Up to 2% of gross sales
Local advertising expenditures Minimum of 1% of projected gross sales
Renewal fee $5,000

 Date of FDD: 2007

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

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