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Rosati’s Pizza Franchise Costs & Fees

Date of Incorporation: 1964
Franchising Since: 2006
Headquarters: Elgin, Illinois

Business Description: ROSATI’S PIZZA is the franchisor of the business. Franchisees operate a ROSATI’S PIZZA restaurant featuring pizza and other casual Italian food items.

Franchise Offer: Qualified individuals may be offered the right to open a single restaurant under the terms of a single franchise agreement. The franchise offered is for the right to operate a ROSATI’S PIZZA restaurant using the Marks and the System at a specific location. The franchisee may operate their ROSATI’S PIZZA restaurant as either a carryout/delivery location or a sit-down location.

Financial Assistance: The franchisor does not offer direct or indirect financing and does not guarantee the franchisee’s note, lease or obligation. The franchisor does not receive any benefits from lenders that may be recommended or introduced to franchisees.

Training and Assistance: At least 30 days prior to opening, the franchisor will provide up to 30 days of initial training on the operation of a ROSATI’S PIZZA Franchised Business to the franchisee and the manager. The training is held in Chicago, Illinois or Temecula, California. Although there are no additional fees for this training, the franchisee must pay for all travel and living expenses incurred while training. As part of the opening, the franchisor will also provide pre-opening and opening on-the-job supervision and assistance at the franchisee’s restaurant premises for approximately 2 weeks around the time of the opening of the franchisee’s restaurant. During pre-opening training, ROSATI’s representatives will assist the franchisee in establishing and standardizing procedures and techniques essential to the operation of a ROSATI’S PIZZA restaurant, including facilitating the opening, supervising cooking procedures and assisting in training personnel. Certain portions of the Training Program may be altered or eliminated based on the franchisee’s skill sets.

Territory: Each ROSATI’S PIZZA restaurant will operate from a specific location which the franchisor accepts (“accepted location”). Once a location is approved, the franchisee is granted a protected area. The size of the Protected Area will be determined by the franchisor based on population density, traffic flow, geographical barriers and other considerations.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. The franchisee has the right to renew the franchise for a successive additional 5-year terms, if certain conditions are met.

Obligations and Restrictions: The franchisee (or at least one of the principals if a corporation, limited liability company or partnership) must participate personally in the direct, day-to-day operations of the restaurant. The franchisee must devote his/her personal full-time attention and best efforts to the management and operation of the restaurant. The franchisee may, however, delegate the day-to-day operation of your restaurant to a manager. The Manager must successfully pass the initial training program before assuming any managerial responsibility. The restaurant must, at all times, be managed by the franchisee or an approved Manager who has successfully completed the initial training program. The franchisee and managers will be bound by the confidentiality and non-compete covenants of the franchise agreement. The franchisee may offer for sale and sell only those food and beverage products and accompanying services that the franchisor has approved in accordance with System Standards..

Estimated Number of Units: 128

Investment Tables:
Initial Investment for a Carryout/Delivery Location
Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Travel and Living Expenses During Training $1,500 $7,500
Office Equipment and Supplies $500 $2,000
Insurance Premiums $1,700 $3,000
Professional Fees $2,000 $15,000
Initial Inventory $8,000 $12,000
Lease, Utility and Security Deposits $1,000 $6,000
Initial Rent $3,000 $13,000
Leasehold Improvements $25,000 $95,000
Furniture, Fixtures and Equipment $55,000 $100,000
Signage $5,000 $15,000
Business Licenses and Permits $1,500 $20,000
Additional Funds for First 3 Months $5,000 $30,000
ESTIMATED TOTAL $99,240 $202,070
Initial Investment for a Sit-Down Location
Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Travel and Living Expenses During Training $1,500 $7,500
Office Equipment and Supplies $500 $2,000
Insurance Premiums $2,500 $10,000
Professional Fees $4,000 $20,000
Initial Inventory $20,000 $35,000
Lease, Utility and Security Deposits $7,500 $20,000
Initial Rent $23,000 $36,000
Leasehold Improvements $30,000 $475,000
Furniture, Fixtures and Equipment $125,000 $250,000
Signage $12,000 $25,000
Business Licenses and Permits $1,500 $20,000
Additional Funds for First 3 Months $5,000 $50,000
ESTIMATED TOTAL $257,500 $975,500
Other Fees
Type of Fee Amount
Royalty Fee 5% of Gross Sales.
Advertising Fund 0% to 5% of Gross Sales. Currently Fund is not in effect.
Additional Training Currently $250 per day; subject to increase.
Ongoing/Refresher Training Currently there is no charge; the franchisor reserves the right to charge a fee.
Convention or National Business Meeting No fee charged in 2015; franchisor reserves right to charge a fee.
Additional Assistance Franchisor does not currently charge but reserves the right to charge a per diem fee plus additional travel expenses.
Transfer Fee One-half of the then current initial franchise fee for a first franchise (and non-refundable); currently $12,500
Renewal Fee Up to $5,000
Audit Fees Cost of audit estimated at $1,500
Inspection Fees Cost of inspection.
Late Fee $100 for each notification.
Interest 2% per month or the maximum legal rate
Unauthorized Advertising Fee $500 per occurrence.
Telephone Service Cost Reimburse the franchisor’s cost of maintaining telephone service at the Business, if applicable.
Lease Renewal Fee Reimburse the franchisor’s costs but not currently exceeding $2,500.
Non-Approval Restaurant Opening $500 per day the Franchised Business is open without approval.
Regional Advisory Council Assessments None currently. Determined by Council.
Software Not yet specified.
Evaluation of Suppliers Currently $250 per day, plus reasonable expenses.
Management Fee To be determined under circumstances. Currently $250 per day, plus reasonable expenses.
Non-Compliance Fee $500 per occurrence.
Cost and Attorneys’ Will vary.
Indemnification Will vary.
Remodeling, modernizing, redecorating Premises Estimated at up to $15,000 for a carryout store and up to $50,000 for a sit-down location, dependent upon required changes.
Reimbursement for Taxes Paid Undetermined.

The above information has been taken from the FDD of Rosati’s Pizza. Year of FDD: 2016

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