Pizza Ranch Franchise Costs, Fees & FDD

Year Business Began: 1981

Franchising Since: 1984

Headquarters: Orange City, Iowa

Estimated Number of Units: 220

Franchise Description: Pizza Ranch, Inc. is the franchisor. Pizza Ranch family restaurants specialize in pizza and chicken. The restaurants offer an all-you-can-eat buffet that includes pizza, chicken, salad and other approved items, as well as special ordering from the menu. Restaurants offer “to-go” service, catering service, and delivery service from the restaurant. The franchise includes the right to use the trademark “Pizza Ranch” as well as other identifying marks, trademarks and logos the franchisor uses now or may develop in the future, and its unique system relating to the establishment, development and operation of a restaurant. If franchisees elect to open and operate a new Pizza Ranch restaurant, they will be required to open it with a FunZone, unless granted an exception. A Pizza Ranch FunZone is a dedicated space at the restaurant of at least 1,200 square feet for card-operated arcade games and amusement devices.
Training Overview: The principal or general manager, assistant general manager, kitchen managers (2) and a guest service manager will be required to complete the Manager in Training Program to the franchisor’s satisfaction. Initial training is comprised of the following: the General Manager and Assistant General Manager Training Program (8 weeks/400 hours); the Kitchen Managers Training Program (5 weeks/200 hours); and the Guest Services Manager Training Program (5 weeks/200 hours). All members of the management team are also required to attend The Foundations of Pizza Ranch classroom-style training at the Pizza Ranch Restaurant Support Center in Orange City, Iowa, or another facility as designated by the franchisor. The workshop lasts 3.5 days. The franchisor also will provide, at no additional charge, no less than five days (of 8 hours each) of grand opening training by at least five Pizza Ranch trainers. The training will consist of seven days of team member training and two days of “soft openings.” FunZone training generally will occur the first week after opening and will cost roughly $1,400/week per trainer, plus travel expenses. The franchisor may offer further training programs and/or refresher courses at the franchisee’s expense, some of which may be mandatory.

Territory Granted: The Franchise Agreement gives franchisees a protected territory to operate one Pizza Ranch restaurant. The territory will be defined using zip codes or by recognized geographical and/or political boundaries, such as streets, rivers, bodies of water, city limits or county lines, or the area within a certain radius from the restaurant. The territory will be determined to provide a mutually agreeable number of prospective customers in the area based upon population density and other characteristics of the territory or a certain mile radius surrounding the restaurant.

Obligations and Restrictions: At all times during the term of the Franchise Agreement, franchisees must have a “principal” owner who (i) has an ownership interest in the franchise, (ii) serves as the general manager, or has the responsibility of hiring and overseeing a qualified general manager, (iii) oversees and/or remains active in overseeing the general management and operations of the restaurant, and (iv) has authority to sign on the franchisee’s behalf on all contracts and commercial documents. In addition to the principal, at all times after the restaurant opens, the franchisee must designate at least one general manager who (i) personally invests his or her full time and attention and devotes his or her best efforts to the on-premises general management of the day-to-day operations of the restaurant, (ii) meets the franchisor’s prior food service management experience requirements, (iii) does not engage in any other business or other activity, directly or indirectly, that requires any significant management responsibility, time commitments, or that otherwise may conflict with the general manager’s obligations, and (iv) has authority to sign on the franchisee’s behalf on all contracts and commercial documents. Franchisees may not offer or sell any products or services that do not meet the franchisor’s standards and specifications. Unless approved by the franchisor, franchisees may not use the premises for any purpose other than the operation of a restaurant.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the restaurant first opens for business. Franchisees can have two separate renewals of 10 years each, if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$30,000	$30,000
Furniture, Fixtures & Equipment	$493,000	$700,000
Arcade Games	$378,000	$550,000
Leasehold Improvements (for retrofit/leased restaurants) or Construction Costs (for new restaurant)	$1,014,000	$2,400,000
Architect/Engineering Fees	$46,000	$130,000
Land	$0	$800,000
Pre-Opening Training Expenses	$80,000	$137,000
Food Used During Team Member Training	$7,000	$9,000
Start-Up Costs	$23,500	$43,500
Rent	Varies
Interest on Pre-Opening Loans	$10,000	$90,000
Working Capital (3 mos.)	$20,000	$20,000
ESTIMATED TOTAL*	$2,101,500	$4,909,500

*The estimated initial investment range covers from a retrofit/leased restaurant up to a new ground-up restaurant with a FunZone (5,400 sq. ft. restaurant/2,400 sq. ft. FunZone).

Other Fees

Type of Fee	Amount
Royalty	Greater of $500 or 3.5% of gross revenues per month.
Service Fee	0.5% of gross revenues.
Marketing and Production Fund Contribution	Up to 5% of gross revenues (current contribution is 2.25%).
Local and Regional Advertising	Up to the difference between 5% and the amount of the franchisee’s contributions to the marketing and production fund. Currently, the franchisor requires only the difference between 3% and the amount of the franchisee’s other contributions.
Promotions	Costs to purchase, lease and install all materials necessary for sales promotions the franchisor establishes, including marketing start-up materials, prize contests, sweepstakes, coupon programs, posters, give-away items, loyalty cards and gift cards. Currently, this amount ranges from $50 to $500 per month.
FunZone Training	$1,400/week per trainer, plus travel expenses.
Management Team Replacement Training (post opening)	$0 - $3,000 for replacement managers to train, depending on where training occurs, plus $200 per trainee for training materials (both fees subject to change).
In Restaurant Supplemental Restaurant Training	$200 per day for each of the franchisor’s trainers (subject to change) plus each trainer's travel and living expenses.
Training Materials	Approximately $200 per year for materials.
Audit Fees	$100 to $1,000 per day for each auditor plus each auditor’s travel and living expenses.
Relocation Fees	$2,000 for restaurant.
Interest	Lesser of 18% per year or maximum legal rate on late payments.
Costs and Attorneys' Fees	This amount may range from $500 to $5,000 depending on circumstances.
Franchise Renewal Fee	$2,500
Insurance	$8,000 to $25,000 per year.
Indemnification	Will vary depending upon loss $5,000 to $100,000.
Inspection and Testing Fees	$100 per day for each of the franchisor’s inspectors plus each inspector’s travel and living expenses.
Updating, Maintenance or Remodeling of Restaurant; Computer Updates	Amount varies and is based on the extent of construction, repairs or remodeling necessary. Currently, this amount may be up to $250,000.
Additional Restaurant Inspections	$294 per inspection, plus the franchisor’s costs incurred (including travel expenses) in conducting additional inspection(s).
Training and Transfer Fee	$10,000
Returned Check Charge and Dishonored Debit Charge	$25 to $100 per returned check.
Appraisal Fee	One-half the cost of the independent appraiser or the cost of the appraiser the franchisee appoints. Currently, this amount ranges from $500 to $2,500.
Manual Copies	Currently, $30 to $110.

The above information has been compiled from the FDD of Pizza Ranch. Year of FDD: 2025.
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