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The Real Boston’s Pizza Restaurant Franchise Cost
Almost everyone can’t resist a slice of pizza! It’s filling, satisfying, and, most significantly, flavorful. And this is why running a pizza chain is a booming business.
If you want a slice of the pie, literally and figuratively, franchising a pizza restaurant is a wise choice. And one of the most popular pizza restaurants that started in Canada is Boston’s Pizza Restaurant. Read on to know the training, obligations, and the Boston’s Pizza Restaurant franchise cost.
Company Overview
Boston’s Pizza Restaurant has a rich history. Their story is as diverse as the pizza dishes they serve, and it all started in Edmonton, Alberta.
Launched in 1964, Gus Agioritis established the Boston Pizza and Spaghetti House. The business grew, and the pizza restaurant became popular. This was when a franchise was born.
The chains expanded in British Columbia. In 10 years, the first franchisees built 16 pizza restaurants all over B.C. After that, they developed the chains in Eastern Canada, with the first location in Ottawa, Ontario, in 1998. The franchise then grew in demand, and in the year 2000, its expansion reached the United States. Having the first location in Dallas, Texas, the chain was operated under Boston’s The Gourmet Pizza.
The Boston’s Pizza Restaurant aims to offer diners a fun pizza experience, fit for the entire family. Most of the restaurant locations have a sports bar with a fun atmosphere. The casual dining experience is what makes this pizza restaurant a go-to place for pizza lovers.
Training Details
The training requirement for franchising a Boston’s Pizza Restaurant runs for five weeks. And this will be held in Dallas, Texas. However, the franchisor can also designate another training facility if necessary.
Here are some of the training details:
- The general manager, operating principal, and up to three managers must attend the initial training that lasts five weeks for the first two restaurants
- The first part of the training entails three weeks in the kitchen
- The second part of the training involves two weeks in administrative and customer service, and management procedures
- The kitchen manager may be asked to undergo an abbreviated three-week training as mandated by the franchisor
- The principal owners may go through a 12-hour Franchise Partner Orientation
- The franchisor may ask the managers and owners to attend additional training programs
Franchise Territory
The franchisor doesn’t grant franchisees exclusive territory. Apart from that, here are the franchise territory details:
- The franchisee must meet the franchisor’s site selection guidelines. Only then can the franchisee operate the restaurant and conduct authorized delivery and catering services
- The franchisee must comply with the Franchise Agreement that stipulates the geographical area
- This protected area should be a one-mile radius surrounding the restaurant, except if the location entails the boundaries of a metropolitan area with more than a million population.
Franchise Obligations and Restrictions
The restaurant should be supervised by the operating principal or owner approved by the franchisor. He or she must oversee the restaurant operations and must be the primary liaison.
There must also be a general manager who must work full-time to manage and operate the restaurant daily. Also, the franchisee may only sell and offer products approved by the franchisor. Finally, the delivery services are limited within a 10-mile radius within the territory granted.
Franchise Term and Renewal
The initial franchise agreement term is 10 years. However, the franchisee may renew additional two or five-year terms.
Financial Aid
Franchisees will not get direct or indirect financial assistance. They also won’t be guaranteed a lease, note, or other obligations.
Did You Know?
Here are some fun facts about Boston’s Pizza Restaurant:
- The founder was a Greek immigrant who came to Edmonton, Alberta
- One of the first franchisees was an R.C.M.P. officer
- The Boston’s Pizza Restaurant was the official supplier of Expo 86 held in Vancouver
Your Investment:
Here is the total breakdown of the Boston’s Pizza Restaurant franchise cost:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Rent Expense | $10,000 | $27,000 |
| Real Property | Varies | |
| Site Due Diligence | $5,000 | $12,000 |
| Architectural and Engineering Fees | $36,000 | $65,000 |
| Project Management | $45,000 | $55,000 |
| Construction and Leasehold Improvements | $150,000 | $1,100,000 |
| Furniture Fixtures and Equipment | $385,000 | $735,000 |
| Audio / Visual, POS & Computer Systems | $75,000 | $150,000 |
| POS & Computer | $40,000 | $50,000 |
| Signage, Graphics & Artwork | $20,000 | $100,000 |
| Liquor License | Varies | |
| Security and Utility Deposits and Permits | $1,000 | $7,000 |
| Initial Training and Opening Expenses | $45,000 | $72,000 |
| Pre-Opening Marketing Assistance & Media | $10,000 | $25,000 |
| Inventory | $27,000 | $47,000 |
| Manager’s Salary | $29,000 | $35,000 |
| Insurance | $1,500 | $2,500 |
| Professional Fees | $8,000 | $15,000 |
| Additional Funds (3 months) | $30,000 | $50,000 |
| ESTIMATED TOTAL (excluding real property) | $967,500 | $2,597,500 |
Other Fees:
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 5% of gross sales. |
| Advertising Assessment | 4% of gross sales. |
| Late Payment Fee and Interest | $100 per week plus interest at 18% per year or the maximum lawful rate |
| Successor Training | Current fees for first two restaurants. Additional fees for trainers per day or week |
| Additional/Remedial Training | $1,000 per trainer per 5-day week, plus $350 per diem per day per trainer, plus additional travel expenses; no travel-related expenses if successor training occurs in Dallas, Texas. |
| Transfers by Franchisees and Their Principal Owners | $25,000 |
| Transfers by Non-Controlling Principals | The franchisor’s reasonable costs associated with the transfer, including background checks. |
| Transfers for the Convenience of Ownership | The franchisor’s reasonable costs and expenses associated with the transfer, including legal and accounting fees. |
| Audit Fee | Cost of audit plus interest. |
| Steritech Re-Audit Fee | Cost of re-audit; currently $500. |
| Securities Offering Fee | Cost and expenses associated with reviewing the proposed offering. |
| Indemnification | Varies according to loss. |
| Insurance | A reasonable amount based on our expenses. |
| Renewal Fee | $25,000 |
| Inspection and Testing | Cost of inspection and cost of test. |
| Manual Replacement Fee | $500 per volume. |
| Enforcement Costs | Varies |
| Liquidated Damages: Termination Before Restaurant Opens for Business | $100,000 |
| Liquidated Damages: Termination After Restaurant Opens for Business (open for less than 6 months) | Average monthly royalty fees and advertising fund contributions for the actual operating period multiplied by 36 months. |
| Liquidated Damages: Termination After Restaurant Opens for Business (open for more than 6 months) | Average monthly royalty fees and advertising fund contributions for the preceding 6 months multiplied by the lesser of (i) 36 months or (ii) the number of months remaining in the term of the Franchise Agreement. |
| POS Support Services Fee | $1,200 per year or $125 per incident. |
| Certified Training Designation | Then-current fee |
| Additional Training | Currently, $1,000 per trainer per five-day period. |
| Product or Program Rollouts | Then-current fee |
If you’re interested in franchising a Boston’s Pizza Restaurant, visit their website for more information.
Plus, for other franchise information, check out Franchise How!