Franchising Since: 1968
Headquarters: Dallas Texas
Estimated Number of Units: 420
Franchise Description: Boston Pizza Restaurants, LP is the franchisor. Boston’s The Gourmet Pizza Restaurant & Sports Bar restaurants feature gourmet pizza and pasta dishes, and a wide variety of entrees, appetizers, fresh salads, sides and desserts. The franchisor specializes in serving family and friends in a full service casual dining restaurant, combined with a sports bar featuring large flat screen TVs, drinks, and food in a fun atmosphere.
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Territory Granted: Franchisees may operate their Boston’s business only at the approved location. The franchisor will grant franchisees a protected territory based on the geographic area and populations properties within that area and other relevant demographic characteristics and will typically be a one-mile radius around the Boston’s business. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.
Obligations and Restrictions: The franchisor requires that franchisees either directly operate their Boston’s business or designate a manager who has been approved by the franchisor. The “responsible owner” is an individual who will be principally responsible for communicating with the franchisor about the Boston’s business. The responsible owner must have the authority and responsibility for the day-to-day operations of the Boston’s business. If franchisees are an individual, they are the responsible owner. If franchisees are a legal entity, they must appoint an individual that has at least a 25% equity interest in the legal entity to be the responsible owner. Franchisees must sell or offer for sale only those products and services authorized by the franchisor, and which meet the franchisor’s standards and specifications. The franchisor reserves the right to establish minimum and maximum resale prices for use with multi-area marketing programs and special price promotions.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet other requirements, they may add two successor term of five years.
Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees. The franchisor does not guarantee a franchisee’s note, lease or other obligations.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $50,000 | $50,000 |
Rent Expense | $10,000 | $28,350 |
Real Property | Varies | |
Site Due Diligence | $5,000 | $12,600 |
Architectural and Engineering Fees | $36,000 | $90,350 |
Project Management | $20,000 | $57,750 |
Construction and Leasehold Improvements | $165,000 | $1,375,000 |
Furniture Fixtures and Equipment | $385,000 | $963,000 |
Audio / Visual Computer Systems | $75,000 | $235,000 |
POS & Computer | $35,000 | $52,500 |
Signage, Graphics & Artwork | $52,000 | $131,000 |
Liquor License | $1,000 | $10,000 |
Security and Utility Deposits and Permits | $1,000 | $7,000 |
Initial Training and Opening Expenses | $45,000 | $75,600 |
On-Site Opening Assistance | $15,000 | $15,000 |
Pre-Opening Marketing Assistance & Media | $20,000 | $20,000 |
Inventory | $27,000 | $49,350 |
Managers’ Salaries | $49,000 | $65,000 |
Insurance | $1,500 | $2,625 |
Professional Fees | $8,000 | $15,750 |
Additional Funds (3 months) | $30,000 | $52,500 |
ESTIMATED TOTAL (excluding real property) | $1,030,500 | $3,306,375 |
Other Fees
Type of Fee | Amount |
Royalty Fee | 5% of weekly gross sales |
Brand Fund Contribution | 3% of weekly gross sales. |
Local Advertising Payment | The difference between the amount franchisees spent on local advertising each month and their required local advertising expenditure. |
Local and Regional Advertising Cooperatives | Established by cooperative members, between 3% and 4% of gross sales. |
Unauthorized Advertising Fee | Then current-fee, currently $500 per occurrence. |
Insurance | Reimbursement of the franchisor’s costs, plus a 20% administration charge. |
Successor and/or Remedial Training | The then-current fees. |
Certified Training Designation | Then-current fee; currently $250 per visit. |
Product or Program Rollouts | Then-current fee; currently $250 per visit per program rollout. |
Technology Fee | The then-current fee (currently $1,500 per year). |
Conference Fee | The then-current fee (currently $1,500). |
Supplier and Product Evaluation Fee | Costs of inspection (estimated to be approximately $100 to $500). |
Food Safety Audit | Cost of actual audit, including travel and expenses. |
Cost of Operations Manual | $500 |
Customer Issue Resolution | The reasonable costs the franchisor incurs for responding to a customer complaint (typically between $20 to $100). |
Payment Service Fee | Up to 4% of total charge. |
Late Payment Fee | $100 per occurrence, plus the lesser of the daily equivalent of 18% per year simple interest or the highest rate allowed by law. |
Non-Sufficient Funds Fee | $100 per occurrence, plus the lesser of the daily equivalent of 18% per year simple interest or the highest rate allowed by law. |
Failure to Submit Required Report Fee | $100 per occurrence and $100 per week. |
Audit Expenses | Cost of audit and inspection, any understated amounts, and any related accounting, legal and travel expenses. |
Quality Inspection Re-Audit Fee | Cost of re-audit; currently $500. |
Management Fee | $500 per day, plus costs and expenses. |
Professional Fees and Expenses | Will vary under circumstances. |
Securities Offering Fee | Cost and expenses associated with reviewing the proposed offering. |
Indemnification | Will vary under circumstances. |
Renewal Fee | $25,000 |
Relocation Fee | The franchisor’s costs (including attorney fees). |
De-Identification | All amounts incurred by the franchisor related to de-identification. |
Transfer Fee | $25,000 |
Transfer to Entity Fee | The franchisor’s actual costs. |
Liquidated Damages | Will vary under the circumstances. |
Broker Fees | The franchisor’s actual cost of the brokerage commissions, finder’s fees or similar charges. |
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