Red Brick Pizza
Date Incorporation: 1998
Franchising Since: 1999
Headquarters: California
Description: A Red Brick Pizza unit franchisee will operate a retail restaurant business featuring the on and off premise sale of a variety of different, high quality, “Fire-Roasted Gourmet” pizzas, fresh chopped salads, gourmet Italian gelato, other foods and beverages and related products, in shopping centers and other approved locations.
Franchise Offer: RBPW (Red Brick Pizza Worldwide, Inc.) offers and sells unit franchises granting the franchisee the right to own and operate a Red Brick Pizza restaurant under a unit franchise agreement. The franchisee is granted the right to use the Red Brick Pizza system and, in some instances, the opportunity to develop a number of restaurants pursuant to an area development agreement.
Under a different disclosure document, RBPW is offering and selling master franchises to master developers granting them the opportunity to develop a number of master developer-owned or sub-franchised restaurants within a protected area.
Financial Assistance: RBPW does not offer direct or indirect financing of the initial fee. However, RBPW has been approved by the U.S. Small Business Administration (SBA) for inclusion on the SBA's franchise registry, where the RBPW franchise appears on a publicly available list of eligible franchise programs and SBA officials and lenders are made aware that prospective RBPW master developers and franchisees are eligible for streamlined SBA loan application processing.
Training and Assistance: RBPW will train up to 3 trainees free of charge and at least one of the attendees must be a signatory to the franchise agreement. Usually, the trainees would complete the initial franchise training in 11 working days followed by 150 hours of in-restaurant training before the restaurant opens. The 150 hour in-restaurant training is to be completed at a certified restaurant designated by RBPW. Initial franchise training is scheduled on a quarterly basis.
Territory: The franchisee is granted a franchise to operate at and from the restaurant RBPW has reviewed and consented to. While the franchise agreement is in effect, RBPW will not locate another Red Brick Pizza restaurant within a defined radius of the franchised restaurant. Although the Red Brick Pizza format does not encourage or promote delivery of Red Brick Pizza products, if the franchisee does so, they cannot deliver Red Brick Pizza products to customers located outside their territory without RBPW's consent.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years. If the franchisee is in good standing, the agreement can be extended for additional 10-year terms.
Obligations and Restrictions: The franchise agreement specifically requires that a principal of the franchise entity personally supervise the operation of the restaurant, and it is the franchisor's intention to select only those Red Brick Pizza franchisees whose principals plan to actively participate in the direct operation and daily affairs of the restaurant. Additionally, the franchisee must employ on a full time basis at least 1 general manager (who may be an individual franchisee) for the restaurant. The franchisee must offer all Red Brick Pizza products and other goods and services that RBPW designates as required for all Red Brick Pizza franchisees.
Total Number of Units: 69 units
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $25,000 | $25,000 |
| Architectural design | $4,000 | $12,000 |
| Leasehold improvements | $25,000 | $150,000 |
| Travel/living expenses for initial training | $2,500 | $5,000 |
| Equipment and furnishings (including optional media center) | $85,000 | $195,000 |
| Point of Sale system (includes cash register, computer system, set-up fee and 1st year support and maintenance) | $5,000 | $30,000 |
| Initial inventory and supplies | $3,000 | $10,000 |
| Interior/exterior signs and graphics | $10,000 | $20,000 |
| Initial advertising (including grand opening expenses) | $2,500 | $10,000 |
| Business licenses and permits | $3,000 | $10,000 |
| Lease for restaurant premises | $1,500 | $6,000 |
| Security deposit (for lease) | $1,500 | $6,000 |
| Business insurance (including workers' compensation) | $2,000 | $5,000 |
| Additional funds (3 months) | $5,000 | $15,000 |
| Total | $150,000 | $499,000 |
Ongoing fees:
| Name of fee | Amount |
|---|---|
| Royalty | 6% of total weekly gross revenues |
| Advertising | 2% of total weekly gross revenues |
| Grand opening | $2,500 - $8,000 |
| Internet support fee | $150 per month |
| Other authorized goods and services | $10,000 per year maximum |
| Renewal fee | $5,000 |
Date of FDD: 2008
The above information has been taken from the UFOC/FDD of Red Brick Pizza
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