Sarpino's Pizzeria
Date Incorporation: 2002
Franchising Since: 2005
Headquarters: Illinois
Description: A Sarpino's Pizzeria restaurant offers authentic Italian dishes in an authentic Italian experience with beautifully designed decor with special Italian touches, giving the consumer the feeling that he is in for something genuine. The menu includes gourmet pizza and authentic Italian pastas along with a variety of other items such as salads, chicken, calzone wraps and sandwich dishes. The Sarpino's Pizzeria restaurant distinguishes itself from competitors by the fresh ingredients, a combination of cheeses, home-made sauces, a proprietary mix of Italian spices, and high-quality meats, fresh baked bread hand-kneaded each day in Italian tradition. The Sarpino's Pizzeria restaurant emphasizes the customer experience and offering excellent products and exceptional service every time.
Franchise Offer: The franchisor grants a franchise to individuals. Franchisees are entitled to own and operate a single restaurant at a specific location by entering into a restaurant franchise agreement. In addition to offering franchises for a single restaurant, the franchisor also allows certain franchisees who fit some criteria to become developers. Developers agree to establish and operate a minimum of 5 Sarpino's Pizzeria restaurants in a specified development territory. If the franchisee meets further criteria, they may also become an area franchisor entitled to grant franchises within a defined geographic territory by entering into an area franchise agreement with the franchisor.
Financial Assistance: The franchisor does not offer any direct or indirect financing. However, the Sarpino's Pizzeria franchise has been registered with the Small Business Administration. The franchisor can assist the franchisee in applying for SBA guaranteed financing.
Training and Assistance: The franchisor will provide the franchisee and a designated manager with an initial training program on the operation of a Sarpino's Pizzeria restaurant. The initial training program is in 3 parts. The first part is 2 weeks during where the franchisee will work in an existing Sarpino's Pizzeria restaurant located in the Chicago metropolitan area. The second part of the training is 5 days of business training conducted at the franchisors corporate headquarters or other location they designate in the Chicago area. The third part of the training is 1 week of in-store training conducted at the franchisee’s Sarpino's Pizzeria restaurant around the time of opening. Before opening, the franchisor will help the franchisee with site selection. After opening, Sarpino's will provide ongoing performance improvement consulting on the operation of a Sarpino's Pizzeria restaurant.
Territory: Franchisees will receive an exclusive territory, the size of which will vary from franchise to franchise. The significance of the protected area is that the franchisor and its affiliates will not allow another Sarpino's Pizzeria restaurant to be located within the geographically boundaries.
Term of Agreement and Renewal: The term of the franchise agreement is 5 years. It can be extended for 3 additional 5-year periods.
Obligations and Restrictions: If the franchisee is an individual owner, the franchisor requires that they personally supervise the franchised business on the premises. If the franchisee is a corporation, Limited Liability Company or other type of business entity, a manager will need to be appointed. The franchisee must offer and sell only those goods and services that have been approved by the franchisor. The franchisee must offer all the goods and services that have been designated as mandatory items.
Total Number of Units: 22 units by year end 2007
Total Number of franchises Units: 21 franchised units by year end 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $19,995 | $19,995 |
| Real estate lease | $2,000 | $15,000 |
| Improvements on real estate to meet Sarpino's standards | $49,000 | $100,000 |
| Training expenses | $4,100 | $6,900 |
| Purchase of initial supplies and inventory | $3,000 | $5,000 |
| Signs | $3,000 | $6,000 |
| Miscellaneous opening costs | $10,000 | $10,000 |
| Equipment, furniture and fixtures | $85,000 | $95,000 |
| Opening promotion | $10,000 | $12,000 |
| Additional funds | $2,000 | $5,000 |
| Total | $188,095 | $274,895 |
Ongoing fees:
| Name of fee | Amount |
|---|---|
| Royalty fee | 6% of monthly gross sales |
| Advertising and marketing fee | 2% of monthly gross sales, but can be increased an additional 1% |
| Regional cooperative advertising | Split between the franchisees in a region based upon gross sales figures. Monies spent on cooperative advertising will be a credit against the local advertising requirement |
| Local advertising | During the first year, 10% of gross sales per calendar month; 7% of gross sales per calendar month thereafter |
| Annual convention registration fee | The franchisor determines the fee in advance |
| Renewal | Up to $10,000, not to exceed the franchisor's actual costs |
Date of FDD: 2008
The above information has been taken from the UFOC/FDD of Sarpino's Pizzeria
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