Pizza Guys Franchise Costs, Fees & FDD

Year Business Began: 1986

Franchising Since: 1994

Headquarters: Rancho Cordova, California

Estimated Number of Units: 85

Franchise Description: The franchisor is Pizza Guys Franchises, Inc. The franchisor franchises others to offer and sell a limited menu of foods, beverages and other merchandise for consumption off premises from takeout and delivery only pizza stores identified by the “Pizza Guys” trade name and service mark which are decorated and equipped according to its specifications, and are operated according to its policies and procedures, all of which the franchisor has developed and will continue to develop. The franchisor also offers the opportunity to add virtual kitchen models to the Pizza Guys franchise under the names Calzone.life and Pizza Piatta.
Training Overview: Initial training consists of two phases plus bootcamp. Phase I covers subjects which are relevant to the opening and operation of the store. Phase I is usually conducted in Sacramento, California. Franchisees must personally attend the initial training program, and they must not open for business until they or their manager have successfully completed Phase I of the initial training program. After the opening of the store, the franchisor or its representatives shall continue training (Phase II) at the franchisee’s store. Bootcamp is held at the franchisor’s headquarters in Rancho Cordova, California over the course of two days (8 hours per day). If the franchisee signs either the Calzone.life Virtual Kitchen addendum or the Pizza Piatta Virtual Kitchen addendum, the franchisor will provide training to one person at a location selected by the franchisor. The franchisor may, but is not required to, offer additional training courses and/or refresher courses to franchisees.

Territory Granted: Franchisees will receive an exclusive territory. The franchisor has not established and will not establish another franchised or company-owned Pizza Guys pizza store or any other franchised or company-owned store serving pizza under the same or a different trade name or trademark within a two mile radius of the store premises excepting situations where a natural or artificial condition is an impediment to travel such as freeways, rivers and the like, in which case we may establish another franchised or company-owned store serving pizza within a two mile radius of the store. Notwithstanding the exclusive area, the franchisee and other franchisees may serve walk-in customers from any area and deliver to call-in customers in any area.

Obligations and Restrictions: Franchisees will be engaged in their own business and, as such, they will be solely responsible for directing the day-to-day activities of their store and supervising the actual physical activities of their employees. Franchisees must comply with all terms of the Franchise Agreement, the store operations manual, and the store premises lease. The Franchise Agreement requires franchisees to sell and deliver the limited menu of foods, beverages and merchandise approved by the franchisor from time to time and to sell and deliver only those items.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they may renew or extend the term for unlimited successive terms equal to the original term of their Franchise Agreement.

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
Initial Franchise Fee	$25,000	$25,000
Grand Opening Period	$7,500	$7,500
Store Premises Lease Advance Rent & Deposit	$3,000	$6,000
Leasehold Improvements	$70,000	$240,000
Equipment & Furnishings	$70,200	$111,550
Signage	$2,000	$5,000
Insurance	$2,000	$5,000
Miscellaneous Opening Costs	$3,000	$6,000
Opening Inventory	$7,400	$8,000
Additional Funds – 3 Months	$10,000	$10,000
ESTIMATED TOTAL	$200,100	$424,050

 
Other Fees

Type of Fee	Amount
Weekly Franchise Fee	5% of gross sales.
Minimum Monthly Advertising Expenditure	$7,500 per month during the first 6 months of operations. The greater of 4% of gross sales or $3,200 per month during months 7 through 12. Thereafter, 4% of gross sales.
Additional Training	Actual cost of travel, meals and lodging plus $100 per day.
Retraining	Actual cost of travel, meals and lodging plus $250 per day.
Transfer Fee	1/2 of the then current initial franchise fee.
Renewal/Extension Fee	1/2 of the then-current initial franchise fee.
Inspection & Audits	Cost of inspection and audit.
Proof of Compliance	Actual cost of travel, meals and lodging plus $250.
Maintenance and Refurbishing of Store	Franchisees must reimburse the franchisor’s expenses.
Late Charges	$35 per occurrence.
Interest	18% per annum or the maximum legal rate whichever is lower.
Loyalty Card Program	The then current program fee, plus percentage for sales dollar.
Social Media Management, Website Hosting, Email Hosting, etc.	The then current fee.
Calzone.life Training Fee	$250
Calzone.life Marketing Fees	$1,000 per month during months 1 through 3. $600 per month during months 4 through 6. Beginning in month 7, $326 to $776 per month.
Calzone.life Website Hosting, Email Hosting and Social Media Management	The then current fee.
Pizza Piatta Training Fee	$250
Pizza Piatta Website Hosting, Email Hosting and Social Media Management	The then current fee.

The above information has been compiled from the FDD of Pizza Guys. Year of FDD: 2024.

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