Big Mama's and Papa's Pizzeria logo

Big Mama's and Papa's Pizzeria Franchise

Audited Financials
Food and BeverageEst. 1992Glendale, CA
www.bmppfranchise.com

Risk Score

Pending analysis

Investment Range

$305,000 - $764,000

Franchise Fee

$17,500

Total US Locations

11

Business Summary

Big Mama's & Papa's Pizzeria operates retail pizzerias, either full-size or smaller "Pronto" outlets. These pizzerias offer a variety of pizzas with unique sizes, salads, sandwiches, specialty condiments, and other authorized food, beverages, and related products for dine-in, carry-out, and delivery.

Corporate History

The original Big Mama's & Papa's Pizzeria system was founded in Burbank, California, in 1992 by the principal owners of BMPP. Initially, the pizzerias offered takeout and delivery of standard-sized pizzas, later expanding to include dine-in service and a broader menu featuring uniquely oversized pizzas. BMPP previously offered franchises from 2006 to 2014 and continues to operate one company-owned pizzeria. Big Mamas and Papas Franchising, LLC, the current franchisor, was organized in California on June 25, 2014, and began offering franchises in February 2015. It operates solely as a franchisor.

Financial Overview

Investment Range

$305,000 - $764,000

Franchise Fee (Low)

$17,500

Franchise Fee (High)

$35,000

Royalty %

6%

Marketing %

4%

Equipment Costs (Low)

$185,000

Equipment Costs (High)

$544,000

Working Capital

$30,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The FDD for Big Mama's & Papa's Pizzeria explicitly highlights a special risk regarding its financial condition. The franchisor's financial statements, specifically the balance sheet for December 31, 2023, show negative members' equity of $(5,119) and total liabilities ($6,695) exceeding total assets ($1,576). The company also reported a net loss of $(30,486) for 2023 and has a very low cash balance of $1,576. These figures raise concerns about Big Mama's & Papa's Pizzeria's financial ability to provide services and support to its franchisees.

Financing Details

Big Mama's & Papa's Pizzeria does not offer any direct or indirect financing options to its franchisees and does not guarantee any notes, leases, or other obligations. Franchisees are responsible for arranging their own funding.

Performance Metrics

Total US Locations

11

Franchised Units

10

Corporate Units

1

Avg Square Footage

1,625

Franchising Since

2015

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their franchise agreement, Big Mama's & Papa's Pizzeria franchisees must provide written notice at least 120 days before their current term expires. At the time of renewal, they must be financially solvent, not have abandoned their outlet, and not be operating in a way that harms the brand or public safety, or have knowingly submitted false reports. They must be in full compliance with all operating requirements and have paid all fees due to the franchisor. Franchisees are required to sign the franchisor's then-current standard Franchise Agreement for renewal, which may contain different terms. They must also remodel their outlet if necessary to meet current system standards and pay a renewal fee of $5,000.

Training & Support Program

Franchisor Assistance

Big Mama's & Papa's Pizzeria provides extensive support to its franchisees, starting before the outlet opens. For pre-opening, Big Mama's & Papa's Pizzeria designates the franchise territory, offers initial training for the General Manager and Principal Equity Owners, provides a general plan for the outlet's layout, equipment, menu, and approved suppliers. It also assists with site selection, requiring final consent, and provides a confidential operations manual. After opening, Big Mama's & Papa's Pizzeria grants access to its website, offers phone and email guidance for operations, and may conduct periodic on-site visits for sales and administrative review. The franchisor notifies franchisees of any deficiencies in the outlet's appearance or cleanliness. Franchisees must attend mandatory annual system-wide meetings. Big Mama's & Papa's Pizzeria may recommend retail prices and requires participation in advertising programs, including a 4% Marketing and Promotion Fee for national and regional efforts, and a minimum 2% of gross revenues for local advertising. Franchisees must use a specified Point of Sale (POS) system (currently SpeedLine Solutions) to which the franchisor has independent access for transaction data. Franchisees are also required to participate in various system-wide promotions and maintain adequate anti-virus software.

Initial Training Hours

83

Training Location

Los Angeles County, California

Ongoing Support

After the Big Mama's & Papa's Pizzeria outlet opens, franchisees receive ongoing support including access to the Big Mama's & Papa's Pizzeria website and guidance via phone and email for operations and management. The franchisor may conduct periodic on-site visits to review operations and assist with procedures, and will notify franchisees if their outlet's appearance or cleanliness doesn't meet standards. Franchisees are required to attend mandatory annual system-wide meetings, for which they cover their own travel and lodging. The franchisor may recommend retail prices and mandates participation in the brand's advertising programs, including contributing 4% of gross revenues to a Marketing and Promotion Fee for national/regional campaigns, and spending 2% of monthly gross revenues on local advertising. Franchisees must use a specific Point of Sale (POS) system (SpeedLine Solutions) and allow the franchisor independent access to their sales data. Additionally, franchisees are obligated to maintain and refurbish their outlets to conform to current brand standards and make required upgrades to equipment and technology.

Franchise Requirements

Ideal Candidate Profile

Big Mama's & Papa's Pizzeria is looking for franchisees whose Principal Equity Owners intend to personally participate in the direct, on-premises management and operation of their outlet. Franchisees must employ a designated General Manager who has successfully completed the franchisor's initial training program; this manager, if not the sole proprietor, must be a Principal Equity Owner of at least 50% of the franchisee entity. The General Manager is required to devote full-time hours to the management, operation, and development of the franchised business. Candidates must also demonstrate their financial ability to cover the initial investment.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

Hands-On

Territory Type

exclusive

Territory Size Requirements

Big Mama's & Papa's Pizzeria defines its exclusive franchise territories based on population density, with sizes typically ranging from a half-mile radius in densely populated urban areas to a five-mile radius in rural areas. The exact size is determined by the franchisor and specified in the franchisee's individual Franchise Agreement.

Staffing Notes

Big Mama's & Papa's Pizzeria requires that each franchised outlet employ at least one designated General Manager who has successfully completed the franchisor's initial training program. If the franchisee is an entity, this General Manager must be a Principal Equity Owner with at least 50% ownership. The General Manager is required to dedicate their full time during normal business hours to the management, operation, and development of the franchised business and cannot have any business relationship with competitors. The franchisor provides proprietary materials for training the staff. Other key employees may also be required to sign non-competition agreements.