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Toppers Pizza Franchise Cost & Fees

Date of Incorporation: 1992

Franchising Since: 2000

Headquarters: Whitewater, Wisconsin

 

Business Description: Toppers Pizza, Inc. is the franchisor. Franchisees operate a Toppers Pizza restaurant that offers on-premises, carry-out and delivery of pizza, submarine sandwiches, breadsticks and other related premium food and beverage products.

 

Franchise Offer: The franchisor franchises the right to offer delivery, dine-in and carryout service of distinctive handmade pizza and other pizza related products under the "Toppers Pizza" mark. Franchisees utilize the franchisor’s exclusive system for the establishment, development, management and operation of pizza restaurants operating under its trademarks.

 

Financial Assistance:  The franchisor does not offer direct or indirect financing nor does it guarantee a franchisee’s promissory notes, mortgages, leases or other obligations.

 

Training and Assistance: The franchisor will provide investor-owner training to franchisees (or all of their direct and indirect owners if an entity) and their Restaurant Manager (if applicable). Investor-owner training generally consists of a two-week program that takes place on an as-needed basis at headquarters in Whitewater, Wisconsin, or another suitable location the franchisor chooses. Up to 2 individuals may participate in the initial training program, including the Managing Partner and a Restaurant Manager (if applicable). Initial training will last up to 30 days. In addition, if this is your first Toppers Pizza franchise, the individual who will have direct operational responsibility for the restaurant (either the Managing Partner or the Restaurant Manager) is required to invest an additional 100 hours working in operations at a Toppers Pizza location to be determined. Depending on the franchisee’s experience, the franchisor may provide you with 7 to 49 days of opening support and on-site training (or 7 to 30 days if franchisees or an affiliate already operate a restaurant). This support and training will be provided on an “as needed” basis as determined by the franchisor. The franchisor may occasionally provide supplementary training courses or programs at locations selected by the franchisor with regard to new procedures or programs.

 

Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that owned by the franchisor, or from other channels of distribution or competitive brands that the franchisor controls. However, the franchisor will not operate, or franchise or license others to operate, a Toppers Pizza restaurant located within the franchisee’s “Protected Area.”

 

Term of Agreement and Renewal: The length of initial franchise term is 10 years. Franchisees may renew if they are in good standing for up to 2 additional 5-year terms.

 

Obligations and Restrictions: If the franchisee operates a single restaurant, one of your principals with at least a 10 percent ownership interest in the franchise must personally manage and supervise the operation of the Toppers Pizza restaurant. This principal will be designated the “Managing Owner.” The Managing Owner must have successfully completed the initial management training program. Notwithstanding the fact that the franchisee may have a restaurant manager and assistant manager, the Managing Owner must devote his or her full time and best efforts to the management of the restaurant. The franchisor must approve all goods and services that the franchisee offers for sale. Franchisees are required to offer certain goods and services, which will be specified in the Operations Manual and are subject to change. Franchisees are only authorized to sell goods and services approved by us.

 

Estimated Number of Units: 75

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee $10,000 $30,000
Travel & Living Expenses for Initial Training $2,000 $8,000
Travel & Living Expenses for the Franchisor’s Training Team $3,000 $15,000
Equipment & Smallwares $80,000 $120,000
Construction & Leasehold Improvements $95,000 $160,000
Indoor & Outdoor Signage $3,000 $12,000
Pre-opening Salaries & Payroll $4,000 $10,000
Pre-opening Rent $0 $12,000
Utility & Insurance Deposits $2,000 $6,000
Market Introduction and Team Recruiting Program $8,000 $11,000
Opening Inventory $7,000 $10,000
Permits and Professional Fees $2,000 $5,000
POS System Hardware $13,000 $15,000
POS System Software Licenses $3,150 $3,600
POS System Support and Maintenance $513 $549
Project Management $0 $7,500
Opening Extension Fee $0 $5,000
Additional Funds $25,000 $50,000
ESTIMATED TOTAL $262,663 $490,649

 

Other Fees

Type of Fee Amount
Continuing Royalty 5.5% of Gross Sales.
Advertising and Marketing Fee 3% of Gross Sales.
Additional Investor-Owner Training $300 per day for each trainee, plus travel and living expenses.
Additional Initial Training Fee $300 per day for each trainee, plus travel and living expenses.
Remedial Training Fee $300 per day for each trainee
Initial On-Site Training and Opening Support Actual travel and living expenses for the franchisor’s training personnel sent to the restaurant.
Additional On-Site Training $300 per day, plus actual travel and living expenses incurred by the trainers the franchisor sends.
Optional Supplemental Training Training fee to be established, and all travel and living expenses.
Relocation Fee $1,500
Transfer $10,000
Interest 18% per year or the highest commercial lending rate that the law allows on amounts owed to the franchisor or to its affiliates that are considered delinquent.
Audit Costs and Interest Cost of audit plus a percentage of interest on underpayments
Testing and Evaluation Fee The franchisor may charge the franchisee an amount not to exceed the actual cost of the test.
Co-op Advertising Up to 3% of Gross Sales.
Technology Fee Weekly fee of 2.25% of franchisee's Online Gross Sales.
Inspection The greater of $500 or the actual cost of re-inspection if the franchisee fails an inspection.
Quality and Service Training The then-current fee for each person assigned to the Restaurant (currently $300 per person), plus travel and living expenses.
Additional Printed Materials Cost of any printed materials ordered on the franchisee’s behalf plus delivery fees. The materials ordered on the franchisee’s behalf will typically cost between $100 and $200.
Non-Solicitation Violation $20,000
Costs and Attorneys' Fees Will vary under circumstances.
Indemnification Will vary under circumstances.
Insurance Premiums / Rent Will vary under circumstances.
Damages Will vary under circumstances.
Franchisor’s Cure of Franchisee’s Default Will vary under circumstances.

The above information has been taken from the FDD of Toppers Pizza. Year of FDD: 2015

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