Precinct Pizza's Franchise FAQ's
FAQ 1
WHAT IS THE SMALLEST STORE I CAN OPEN WITH?
The smallest store that can accommodate a Precinct Pizza would be about 1,800 square feet.
HOW MUCH DOES A FRANCHISEE HAVE TO PAY IN ROYALTIES?
The initial franchise fee is $25,000.
Most restaurant franchises collect a percentage royalty of your sales. Precinct Pizza does not believe that is fair. Our expenses do not increase if you work hard, do the right thing, and you increase your own sales. If you do well, you should get to keep the extra money. To take a percentage of your sales would mean that no matter how hard you work, you will not make extra money. We just do not think that is fair. We collect a low, flat royalty fee of $1,875 per month. We also collect $250 that goes into a local advertising fund to help advertise your store. If Precinct Pizza has more than 5 franchise locations, then we will start collecting an additional $250 per month to fund more aggressive advertising like radio & television commercials.
Most restaurant franchises collect a percentage royalty of your sales. Precinct Pizza does not believe that is fair. Our expenses do not increase if you work hard, do the right thing, and you increase your own sales. If you do well, you should get to keep the extra money. To take a percentage of your sales would mean that no matter how hard you work, you will not make extra money. We just do not think that is fair. We collect a low, flat royalty fee of $1,875 per month. We also collect $250 that goes into a local advertising fund to help advertise your store. If Precinct Pizza has more than 5 franchise locations, then we will start collecting an additional $250 per month to fund more aggressive advertising like radio & television commercials.
WHERE CAN I FRANCHISEE? WHAT AREAS ARE AVAILABLE?
Precinct Pizza currently offers franchises only in the state of Florida. We do not believe we could assist and/or supervise a franchisee that is out of state. Each Precinct Pizza store has a primary area around their store that no other store can overlap. This ensures that no two stores fight over customers. The area that you want to open a store in must be approved by Precinct Pizza Franchising, LLC.
HOW MUCH DOES A FRANCHISE COST?
The expense of opening a franchise has many variables that can reduce or increase our estimated expenditures. We estimate that a store can be opened for as little as $325,000, or as much as $802,000. Some of these mitigating factors are the size of the location desired, the expense of the leasehold improvements, potential existing equipment, the willingness of the landlord to contribute to leasehold improvements, and/or the ease or difficulty of the construction.
WHAT IS THE RISK?
Per one study, 80% of new restaurant startups fail within the first 3-5 years, but conversely the inverse is true for franchises where 80% survive. Any business has risk, and the restaurant business is no exception. Precinct Pizza began offering franchises after ten years in business, because that was how long it took to design our business model for replication. Precinct Pizza believes that it now has all the tools to offer a franchisee to help them down the road of success with the highest probability of success.
FAQ 2
WHAT IS THE TERM OF THE FRANCHISE CONTRACT?
The franchise contract is for ten years, with the ability of the franchisee to renew for additional ten year terms.
WHAT CAN I SELL & NOT SELL?
You may only sell products approved by Precinct Pizza. Precinct Pizza believes that having uniform menu and product offerings throughout all stores is paramount to success. If you wish to offer an item that is not on the corporate menu, or in the approved merchandise list, you must obtain written approval from Precinct Pizza Franchising, LLC.
MAY I SPEAK TO YOUR FRANCHISEES?
Yes. Precinct Pizza began offering franchises in January 2017 and as of yet do not have a franchisee, but once we do, we will certainly allow our franchise(s) to speak freely with a perspective franchisee.
MAY I MEET WITH SOME OF YOUR STAFF?
Yes, you may come to any Precinct Pizza store and speak to our staff as long as it does not interrupt our operations.
DO YOU TAKE ANY COMMISSIONS OR REBATES ON SUPPLIES, GOODS OR SERVICES PURCHASED BY THE FRANCHISEE?
No. We do not believe this is a good business practice. We believe this creates a distrust between the franchisor & franchisee. Whatever you purchase through our preferred vendors will always be the same price we have negotiated for ourselves.
FAQ 3
HOW MANY FRANCHISE FAILURES HAS PRECINCT PIZZA EXPERIENCED?
Currently there have been no failed Precinct Pizza Franchises.
HOW LONG HAVE YOU BEEN OFFERING FRANCHISES?
Precinct Pizza began offering franchises on January 2, 2017.
HAS A PRECINCT PIZZA FRANCHISEE EVER SUED YOU?
There has been no litigation initiated by any Precinct Pizza franchisee against Precinct Pizza Franchising, LLC.
HOW DO YOU RESOLVE DISAGREEMENTS OR DISPUTES?
Precinct Pizza believes that most disagreements can be settled amicably by speaking with the franchisee and listening to their grievances. If it cannot be settled, arbitration would be the first choice of dispute resolution.
IS EXPERIENCE IN THE RESTAURANT BUSINESS REQUIRED?
Experience is not required, as we will provide extensive training, but having experience certainly helps. If you have never worked in a restaurant and want to franchise, we highly suggest working in one of our stores to see if it is something that you really want to do.
We only want people that are passionate about making food. If you think owning a Precinct Pizza would be a nice side gig, you are not going to be happy with the outcome. Owning a restaurant is hard work. We have made the process easier than if you tried doing it on your own, but it still requires work & focus to make it a success.
We only want people that are passionate about making food. If you think owning a Precinct Pizza would be a nice side gig, you are not going to be happy with the outcome. Owning a restaurant is hard work. We have made the process easier than if you tried doing it on your own, but it still requires work & focus to make it a success.
FAQ 4
WHAT IS THE PROCESS OF BECOMING A PRECINCT PIZZA FRANCHISEE?
The first step is to fill out a Franchise Application. Precinct Pizza will then set up an interview with you and discuss the process in further detail. We are sure that you will have many questions for us, as we will have for you.
WHAT IS THE EXPECTED RETURN ON MY INVESTMENT?
Every restaurant is different, so to even try and venture a guess would be foolish. Rent, air conditioning, size of the restaurant, insurance, sales, debt on equipment loans, initial leasehold improvements and other factors all play a large contributing role in profitability and can have huge differences from store to store.
DO YOU OFFER FINANCING?
No, but we can put you in touch with our bank’s Small Business Administration(SBA) specialist who has decades of experience in helping people get their loan approved. Filling out a government loan is complicated, so you want someone who specializes in these loans by your side if the SBA is the way you plan to obtain financing. A minimum net worth of $500,000 and $250,000 in liquid assets is required before being approved to open a Precinct Pizza franchise.
I AM INTERESTED, BUT HAVE MORE QUESTIONS. HOW DO I FIND OUT MORE?
Please contact us at 813-982-0911 and we will set up an interview