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Boss’ Pizza & Chicken Franchise

Audited Financials
Food and BeverageEst. 2005Sioux Falls, SD

Risk Score

Pending analysis

Investment Range

$137,200 - $538,500

Franchise Fee

$24,000

Total US Locations

10

Business Summary

Boss' Pizza Franchise, LLC offers individual unit franchises for the development and operation of Boss' Pizza & Chicken restaurants. These restaurants specialize in broasted chicken, a variety of specialty pizzas, and other pub-style food, along with alcoholic and non-alcoholic beverages. Boss' Pizza & Chicken provides two main models: a Traditional Restaurant, which offers dine-in, delivery, and pickup services, and a Sports Bar Restaurant, which is a larger, full-service dining establishment that includes a bar serving alcoholic beverages.

Corporate History

Boss' Pizza Franchise, LLC was formed in South Dakota on June 18, 2021, and began offering franchises for Boss' Pizza & Chicken Restaurants in October 2021. The Boss' Pizza & Chicken concept was originally created by its predecessor and affiliate, Boss' Pizza & Chicken, LLC, which was formed in May 2005 and began operating Boss' Pizza & Chicken Restaurants in September 2005. The predecessor entity owns the 'Boss' Pizza & Chicken' trademarks and licenses them to Boss' Pizza Franchise, LLC for use in the franchise system. The predecessor and its affiliated entities currently operate nine Boss' Pizza & Chicken restaurants.

Financial Overview

Investment Range

$137,200 - $538,500

Franchise Fee (Low)

$24,000

Franchise Fee (High)

$30,000

Royalty %

5%

Marketing %

3%

Equipment Costs (Low)

$52,500

Equipment Costs (High)

$332,000

Working Capital

$35,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Boss' Pizza Franchise, LLC received an unqualified audit opinion for its financial statements for the years ending December 31, 2021, 2022, and 2023, indicating that the statements present fairly in all material respects. However, the company has experienced significant customer concentration. In 2023, four customers generated 90.41% of its total revenue and 46.30% of its accounts receivable. In 2022, three customers accounted for 100% of its total revenue and accounts receivable, which could pose a risk to the company's financial stability if these key customer relationships were to change.

Financing Details

Boss' Pizza Franchise, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations that franchisees may incur.

Performance Metrics

Total US Locations

10

Franchised Units

5

Corporate Units

5

Avg Square Footage

4,013

Franchising Since

2021

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew their franchise agreement, Boss' Pizza Franchise, LLC franchisees must provide written notice of their intent to renew between 60 and 180 days before the current term ends. They must have complied with all material provisions of their existing franchise agreement and other agreements, including all monetary obligations and operating standards. Franchisees are required to make necessary capital expenditures to remodel, modernize, and redecorate the restaurant premises to reflect current brand standards, or secure a new approved location and make required improvements. An approved Principal Owner and the Operating Principal must complete any new or refresher training programs. Franchisees must pay a renewal fee equal to 10% of the then-current standard initial franchise fee for a new Boss' Pizza & Chicken franchise, and sign the franchisor's then-current standard Franchise Agreement, which may have different terms. Finally, franchisees and each Principal Owner must sign a general release of all claims against Boss' Pizza Franchise, LLC and its affiliates.

Training & Support Program

Franchisor Assistance

Boss' Pizza Franchise, LLC provides extensive assistance to its franchisees. Before opening, Boss' Pizza Franchise, LLC offers site selection consulting and optional fee-based lease negotiation assistance, prototype drawings and specifications for the restaurant, initial training for the Operating Principal and key management personnel, access to the confidential Operations Manual, access to a designated Computer System including point-of-sale and financial reporting software, and lists of approved suppliers. For opening, representatives provide on-site assistance for a combined total of 4 days for Traditional Restaurants or 12 days for Sports Bar Restaurants. Ongoing assistance includes advisory services on operations, products, marketing, and administration, periodic updates to the Operations Manual, and operation of a Brand Development Fund for system-wide promotion. Franchisees must also participate in local marketing activities and may be required to contribute to regional advertising cooperatives. The franchisor also establishes and requires participation in various technology platforms, gift card, and loyalty programs.

Initial Training Hours

118

Training Location

Sioux Falls, SD or other designated location

Ongoing Support

After opening, Boss' Pizza Franchise, LLC provides ongoing support through advisory services related to restaurant operations, including products, marketing, sales promotion programs, and general administrative procedures. Franchisees receive periodic updates to the Operations Manual. Boss' Pizza Franchise, LLC operates a Brand Development Fund, to which franchisees contribute, for system-wide marketing and promotion. Franchisees and their key management personnel are required to attend supplemental and refresher training programs up to three days each calendar year, in addition to any mandatory annual conferences sponsored by Boss' Pizza Franchise, LLC. There are fees associated with these additional training programs and conferences, and franchisees are responsible for travel and living expenses.

Franchise Requirements

Ideal Candidate Profile

Boss' Pizza Franchise, LLC seeks an Operating Principal who will be approved by the franchisor and successfully complete required training. This individual must be responsible for the day-to-day operations of the restaurant on a full-time basis, without engaging in other business activities that conflict with these responsibilities. The restaurant must always be under the direct, on-site supervision of the Operating Principal or a general manager. Boss' Pizza Franchise, LLC recommends that the Operating Principal have prior food service experience. Additionally, Principal Owners, defined as individuals or entities holding a 10% or greater interest in the franchisee entity, must sign a personal guaranty.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

Full-Time

Territory Type

Protected

Staff Count

24

Territory Size Requirements

Boss' Pizza Franchise, LLC grants a Protected Territory to its franchisees, defined by zip codes or other boundaries based on population density, median household income, and economic development. Each Protected Territory is designed to have a minimum population of 40,000 people according to the most recent U.S. census. For restaurants located in markets with a population of at least 1,000,000 people, the minimum protected territory may be limited to a 1/8th-mile radius surrounding the Boss' Pizza & Chicken Restaurant.

Staffing Notes

Boss' Pizza Franchise, LLC requires each restaurant to employ 8 to 12 full-time employees, 8 to 12 part-time employees, and 2 to 5 managerial employees. Franchisees are solely responsible for hiring, training, and all personnel decisions. They must implement a training program for their employees, maintain a sufficient staff of trained individuals, and ensure all employees comply with required licenses and certifications. The Operating Principal, or a certified manager who completed initial training, must provide direct, on-site supervision at all times. All employees must adhere to standards for qualifications, dress, appearance, and demeanor, and wear only approved uniforms. Specific job roles mentioned in training include Bartending, Pizza Preparation, Broasted and Fry Side Preparation, and Store Management.