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
|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|
|Utility & Insurance Deposits||$2,000||$6,000|
|Market Introduction and Team Recruiting Program||$8,000||$11,000|
|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|
|Opening Extension Fee||$0||$5,000|
|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.|
|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.|
|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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