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How Much Does A Round Table Pizza Franchise Cost?
Many entrepreneurs are aspiring to own a Round Table Pizza but don’t know where to start. So, in this article, we’ll tackle the Round Table Pizza franchise cost. Plus, the significant components of the franchise agreement (FA) you need to understand before making a very important investment decision.
Their time-tested system helps franchisees reach their goals and set up a lucrative business. But just like any other venture, the success of a franchise still depends on the entrepreneur’s dedication and commitment.
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The Round Table Pizza Franchise Cost
Before discussing the Round Table Pizza franchise cost, let’s look back on its roots and its development over the years. At the present time, it is headquartered in Atlanta, Georgia. It had its start in 1959. A few years later, it started offering franchises to interested entrepreneurs who want to open their own pizza venture.
At the present time, the Round Table Franchise Corporation franchises the pizza venture. Furthermore, the corporation permits franchisees to operate retail restaurants that offer pizza, related menu items, and beverages under the proprietary marks. So far, there are two types of restaurant models available for a franchise:
- Dine-In Model
- Delivery Carry-Out (DCU) Model
Moreover, you may choose to locate either of the restaurant models from a captive venue of other non-traditional spaces. Alternatively, you can also offer a more limited menu based on factors like footprint and store layout.
Training Overview
Aside from the Round Table Pizza franchise cost, an entrepreneur must also be willing to invest time and effort to get a franchise. The training program takes up to five weeks. It’s also held in a satellite or any other approved location. Depending on their experience, the franchisor may require franchisees to attend extra courses before opening the business.
The franchisee or their designated manager must complete the training before being allowed to operate. In addition to that, there may also be refresher courses and training from time to time to update managers’ and employees’ knowledge and skills.
Territory Granted
The acceptable location shouldn’t go beyond the non-exclusive Site Selection Area. Hence, a franchisee’s territory is equal to a one-mile radius surrounding its primary restaurant entrance. During the franchise period, the franchisor will not locate or own any restaurant within an existing franchisee’s vicinity.
However, there are exceptions to this clause. For instance, there are locations where the territory privilege doesn’t apply. These include:
- San Francisco, California
- Certain areas within Los Angeles, San Jose and/or San Diego, California
- Portland, Oregon,
- Areas in which the population within any 24-hour period exceeds 50,000 persons per square mile
Obligations and Restrictions
In addition to the Round Table Pizza franchise cost, a franchisee also needs to comply with obligations and restrictions. For instance, owners should devote their time and best efforts to ensure proper and effective business. There must also be at least one manager for each site, which could be owners themselves or a designated person.
The initial franchise period is ten years from the effective date. After this, the franchisee can avail of a 10-year renewal period as long as it meets the conditions to renew.
Your Investment
| Initial Franchisee Fee | $25,000 | $25,000 |
| Travel and Living Expenses While Training | $1,000 | $2,250 |
| Real Estate and Improvements | $95,000 | $600,000 |
| Equipment | $145,000 | $295,000 |
| Point of Sale Equipment | $15,000 | $30,000 |
| 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 | $327,300 | $1,061,250 |
Other Fees
| Royalty Fee | Greater of 4% of Net Sales generated by the restaurant over the prior reporting period. Or $750 per month. |
| Marketing Fee | 4% of Net Sales |
| Transfer Fee | Transfer fee based on the kind of transfer at issue. |
| Renewal Fee | Current renewal fee. |
| Additional/Remedial Training | $300 per employee or agent for each full or partial day. |
| Relocation Charge | The current relocation fee. |
| Audit-Related Reimbursement | Cost of audit, plus travel and living expenses. This also includes 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 and testing the proposed product. It also includes evaluating the service provider or proposed service, and the personnel and travel costs. |
| Late Fee | $25/week. |
| Interest | 18%/year or maximum legal rate, if less. |
| Inspection | The franchisor’s reasonable expenses incurred in inspecting the business. It also includes travel and living expenses, wages, and other expenses for its employees. Plus, a $135 fee for first inspection and $250-$450 for additional ones. |
| Insurance | The 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. This includes reasonable attorneys’ fees. |
| Costs of Compliance and Enforcement in Connection with the FA | The costs associated with franchisees complying with, and/or the franchisor enforcing its rights under the Franchise or Development Agreement. |
| Convention or Meeting Attendance | If the franchisor establishes and controls the administration of any meeting for some or all restaurant owners. It reserves the right to charge a fee to help cover the costs associated with that convention or meeting. |
| Remedial Expenses | The franchisor’s reasonable expenses incurred in correcting the franchisee’s operational deficiencies. This cost will not exceed $10,000 per deficiency. |
| Step-In and Management Proceeds | It varies depending on Gross Sales. Plus, the resulting profit generated by franchised restaurant. This happens when franchisor representatives step in and manage the restaurant. This occurs at the event of franchisee’s death or disability during the 90 or more day period. |
| Reimbursement of Taxes Other than Income Tax | As determined by appropriate taxing authority, if any. |
Did You Know?
- The roots of the business are quite sentimental. When founder Bill Larson opened the first-ever Round Table Pizza in Menlo Park, California in 1959, it was meant to be a shop where customers can “share a little pizza with someone you love.” Along with this vision, it became a priority to use gold-standard produce as well as time-honored recipes to create hand-crafted pizza worth sharing.
- When Round Table Pizza marked its 60th anniversary in 2019, participating locations offered a special throwback pricing offer. In fact, for one large pizza bought, customers can buy a second one-topping large pizza for its price in 1959, which is $2.80! In addition to that, the brand invited fans to share stories, photos, and videos related to the pizza. Not to mention, they featured select ones in a special video to celebrate their six decades in the industry.
- The pizza place has reinvented itself over the years, as shown by the evolution of its logo. Their new restaurant design pays homage to the decades it spent in the industry, all while offering a modern dining backdrop.
- The brand also has a program called GroupRaise meals, which supports fundraising activities for worthy causes. Firstly, you can request a date for your group at a local Round Table Pizza. Then, inform people about it and confirm your meal with RSVPs. The Round Table Pizza will then donate a portion of sales to your cause. They’ve partnered with organizations like Water.org, American Cancer Society, and NothingButNets as well.
If you’re looking for a brand that’s got experience in the industry, Round Table Pizza is one of your most viable options.