Papa Bello Pizza
Date Incorporation: 2006
Franchising Since: 2007
Headquarters: Las Vegas, Nevada
Description: The franchise is for the establishment and operation of quick-casual restaurants offering pizza, pasta, subs, beverages and other menu items on a dine-in, take-out, take-and-bake or delivery basis. Papa Bello Pizza restaurants are located in Wal-Mart stores, shopping centers, in-line locations and free-standing locations.
Franchise Offer: The franchisor offers qualified applicants the opportunity to own and operate restaurants under the Papa Bello Pizza system. Qualified applicants will also enter into a development agreement to develop two or more restaurants within a specifically described geographic area. The developer must develop the number of restaurants contemplated by the development agreement in the territory according to a development schedule and must enter into a separate franchise agreement for each restaurant established. If the franchisee meets the net worth agreed by the franchisor, operational experience and other requirements, the franchisee can enter into an area representative agreement, for the development and servicing of multiple Papa Bello Pizza restaurants located within a designated area. This program differs from the development program in that an area representative agrees to develop a certain number of restaurants within the development area, and then is responsible for overseeing the daily activities of franchisees operating within the development area.
Financial Assistance: The franchisor does not offer direct or indirect financing, except on the existing corporate stores. If the franchisee decides to purchase a restaurant that is currently owned and operated by the franchisor, the latter may choose to finance a portion of the purchase price.
Training and Assistance: The franchisor will provide the initial training program to the franchisee and to one additional trainee, for a maximum of two people. Currently, training is conducted at the franchisor's headquarters in Las Vegas, Nevada, and/or at a Papa Bello Pizza restaurant owned and operated by them. Initial training generally requires approximately three weeks. In addition to the initial training program, the franchisor will also provide one week of in-store training at the franchised restaurant before it opens. The franchisor will offer the franchisee a site located inside a Wal-Mart store, if available. If the restaurant is established within a Wal-Mart store, the franchisor will build-out and construct the restaurant to its specifications and sell the restaurant to the franchisee as a "turn-key" enterprise. If the restaurant is not located in a Wal-Mart store, the franchisor will review the proposed site for compliance. After opening, the franchisor will provide two weeks of in-store operations training at the franchised restaurant.
Territory: The franchisee must select the site for their restaurant from within the protected area identified in the franchise agreement. If the franchisee is in compliance with the franchise agreement and any other agreement with the franchisor or its affiliates, the franchisor and its affiliates will not establish or authorize anyone except the franchisee to establish a Papa Bello Pizza restaurant in the protected area during the term of the franchise agreement.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years. It can be renewed for two additional 5-year terms.
Obligations and Restrictions: When a franchisee signs the development agreement and franchise agreements, the franchisee must designate an individual to serve as the operating principal. The same person must act as the operating principal under the development agreement and all franchise agreements. If the franchisee is an individual, they will be the operating principal. If the franchisee is not an individual, the operating principal must maintain a direct or indirect ownership interest in the franchise of not less than 10%. The franchisee must offer and sell all menu items, products and services required by the franchisor and expressly approved in writing. The franchisee must prepare all menu items using the procedures for preparation contained in the manuals or other written instructions. All products used or sold at the restaurant must conform to the franchisor's standards and specifications.
Total Number of Units: 20 units
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $25,000 | $25,000 |
| Construction | $25,000 | $81,000 |
| Real estate and improvements | $3,500 | $5,000 |
| Leased premises improvement charge | $55,311 | $55,311 |
| Equipment | $48,000 | $70,000 |
| Signage | $7,000 | $12,000 |
| Initial inventory | $3,000 | $10,000 |
| Architectural / Engineering | $5,000 | $10,000 |
| Electronic cash register system | $12,000 | $15,000 |
| Travel, lodging and meals for initial training | $2,500 | $4,000 |
| Miscellaneous opening costs | $1,000 | $25,000 |
| Insurance (one month) | $1,000 | $5,000 |
| Grand opening advertising | $2,500 | $3,000 |
| Advertising fee (3 months) | $300 | $4,500 |
| Additional funds | $10,000 | $40,000 |
| Total | $209,111 | $379,811 |
Ongoing fees:
| Name of fee | Amount |
|---|---|
| Royalty fee | 6% of gross sales |
| Advertising fund contribution | 2% of gross sales |
| Local advertising | 2% of gross sales |
| Cooperative advertising | As determined by the cooperative members |
| Renewal fee | 50% of then-current initial franchise fee |
| Public offering | $5,000 |
| Refurbishment or upgrade of restaurant (except in the first 5 years of agreement) | Varies |
| Management fee (if you lease a space within a Wal-Mart store) | 1% of gross sales for first 2 years, 1.25% thereafter |
| Annual financial statement | Preparation costs |
Date of FDD: 2008
The above information has been taken from the UFOC/FDD of Papa Bello Pizza
Franchise Direct's Disclaimer
You may be interested in the following franchises...
Manny & Olga's Pizza
A premier pizza franchise in a burgeoning industry - the takeout pizza and sandwich trend is sizzling! Get your...
Minimum Cash Required: $125,000.
Little Caesars
Partner with Little Caesars, a globally recognized pizza franchise brand and the #1 pizza chain in the U.S.
Minimum Cash Required: $50,000.
Your Request List