Franchising Since: 1962
Headquarters: Beverly Hills, California
Estimated Number of Units: 410
Franchise Description: The franchisor is The Round Table Franchise Corporation. The franchisor is a wholly-owned subsidiary of Round Table Pizza, Inc. The parent company is FAT Brands, Inc. The franchisor offers franchises for the operation of retail restaurants selling pizza and related food items and beverages under the proprietary marks it designates. The franchisor offers franchises for two different restaurant models that differ in size/footprint, buildout and the kinds of products and services each model is authorized to offer and provide.
Training Overview: One person named on the franchise agreement as the “franchisee” or as an owner of the franchise (if the franchisee is a legal entity) must attend the full training program (the owner trainee). Additionally, the person responsible for the day-to-day operations (if different from the owner trainee) of the restaurant will also be required to attend the full training program. The training currently consists of approximately three hours of online orientation and 15 days of on-the-job training at a designated training location for purposes of practical application. The franchisor will conduct three days of additional training at the store before its opening. The franchisor may periodically conduct advanced training programs for franchisees, their managers, and/or their employees at its office or another location that it designates.
Territory Granted: The franchise is for the specific site that the franchisor approves. Franchisees must locate an acceptable site within the non-exclusive site selection area that the franchisor specifies. With certain exceptions, franchisees will be provided with a geographical area amounting to a one mile radius around the primary entrance of the restaurant. During the term of the Franchise Agreement, the franchisor will agree not to own or locate, or license any third party the right to own or locate, another restaurant within the designated territory. Franchisees will not be afforded a designated territory if: (i) the restaurant is located in (a) San Francisco, California, (b) certain areas within Los Angeles, San Jose and/or San Diego, California, (c) Portland, Oregon, or (d) other areas in which the population during any 24-hour period exceeds 50,000 persons per square mile; or (ii) if franchisees are operating their restaurant from any kind of non-traditional location. If franchisees would like to relocate their restaurant, they must receive prior written approval if not relocated within a one-mile radius of the restaurant.
Obligations and Restrictions: Franchisees must devote their full-time, best efforts to the proper and effective operation of the restaurant. In addition, the restaurant must have at least one manager. If franchisees are an individual, they may serve as the manager or they may designate a manager. If franchisees are an entity, they must designate a manager and they must appoint an individual who must have authority over all business decisions related to the restaurant and must have the power to bind the franchisee in all dealings with the franchisor. At all times that the restaurant is open for business, it must be under the personal, on-premises supervision of the franchisee or a manager. Franchisees may offer for sale in the restaurant only the products and services that the franchisor has approved in writing. The franchisor may designate specific products or services as optional or mandatory, and there are no limits on its right to do so. Franchisees must offer all items that the franchisor designates as mandatory.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the effective date, unless the franchisor agrees otherwise in a separate writing. Renewal is for the shorter of one additional 10-year renewal term or the remaining term of the franchisee’s lease (including options), subject to the franchisee meeting the franchisor’s conditions to renew.
Financial Assistance: If the franchisor offers franchisees the opportunity, they must offer or sell cookies as an added menu item. However, franchisees will have the option to purchase or lease the cookie equipment from the franchisor’s affiliate, GFG Management, LLC. Except as disclosed, neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of theirs, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of theirs.
Investment Tables:
The above information has been compiled from the FDD of Round Table Pizza. Year of FDD: 2023.
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| Name of Fee | Low | High |
|---|---|---|
| Initial Franchisee Fee | $25,000 | $25,000 |
| Travel and Living Expenses While Training | $1,500 | $3,500 |
| Real Estate and Improvements | $115,000 | $600,000 |
| Furniture, Fixture & Equipment | $145,000 | $295,000 |
| Point of Sale Systems and Related Technology | $35,100 | $59,000 |
| Opening Inventory/Smallwares | $7,500 | $15,000 |
| Interior Décor Package/ Exterior Signage | $8,500 | $35,000 |
| Uniforms | $1,000 | $2,000 |
| Insurance | $4,300 | $7,000 |
| Additional Funds – 3 months | $25,000 | $50,000 |
| ESTIMATED TOTAL | $347,300 | $1,091,500 |
| Type of Fee | Amount |
|---|---|
| Royalty Fee | Greater of (i) 4% of net sales generated by the restaurant over the prior reporting period, or (ii) $750 per month. |
| Marketing Fee | 4% of net sales. |
| Transfer Fee | The then-current transfer fee based on the kind of transfer at issue. |
| Renewal Fee | The then-current renewal fee. |
| Additional/ Remedial Training | Currently, $300 per employee or agent for each full or partial day. |
| Relocation Charge | The then-current relocation fee. |
| Audit-Related Reimbursement | Cost of audit, plus travel and living expenses, plus interest on the amount of the under-payment at an annual rate of the lesser of 18% or the maximum interest rate permitted by law. |
| Product, Service, Supplier, and Service Provider Review | The franchisor’s reasonable cost of inspecting the supplier, testing the proposed product, or evaluating the service provider or proposed service, including personnel and travel costs; this cost will not exceed $5,000. |
| Late Fee | $25 per week. |
| Interest | 18% per year (or maximum legal rate, if less). |
| Inspection | The franchisor’s reasonable expenses incurred in inspecting the business, including travel and living expenses, wages, and other expenses for its employees including a $135 fee for first inspection and $250-$450 for additional ones. |
| Maintenance and Repair | The franchisee’s actual costs associated with maintaining and repairing the restaurant on an annual or as-needed basis. |
| Insurance | Cost of the premium plus a reasonable fee for the franchisor’s services in procuring the insurance. |
| Indemnification | The franchisor’s liabilities, fines, losses, damages, costs, and expenses (including reasonable attorneys’ fees). |
| Costs of Compliance and Enforcement in Connection with the Franchise Agreement | The costs associated with (a) franchisees complying with, and/or (b) the franchisor enforcing its rights under, the Franchise Agreement or Development Agreement. |
| Convention or Meeting Attendance | As the franchisor determines based on the franchisor’s costs of holding the convention or meeting. |
| Remedial Expenses | The franchisor reasonable expenses incurred in correcting the franchisee’s operational deficiencies; this cost will not exceed $10,000 per deficiency. |
| Step-In and Management Proceeds (only in the event of the franchisee’s death or disability) | Varies depending on the gross sales and resulting profit generated by the franchised restaurant over the period of time the franchisor’s representatives step-in and manage restaurant operations in the unfortunate event of the franchisee’s death or disability during the 90 or more day period following such event. |
| Reimbursement of Taxes Other than Income Tax | As determined by appropriate taxing authority, if any. |
| Cookie Equipment Lease (only due and payable if franchisees elect to add cookies as a menu item) | Estimated at $360 per year. |
| Brand Technology System Support Services | Currently no charge. |
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