Boston Pizza Restaurants Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,040,500 - $2,887,025
Franchise Fee
$50,000
Min Cash Required
$30,000
Total US Locations
22
Business Summary
Boston Pizza Restaurants, LP operates Boston's The Gourmet Pizza Restaurant & Sports Bar restaurants, which are full-service casual dining establishments. These restaurants specialize in gourmet pizza and pasta, and also offer a wide variety of entrees, appetizers, fresh salads, sides, and desserts. The concept combines a family-friendly dining experience with an exciting sports bar atmosphere, featuring large flat-screen TVs and a selection of drinks. Boston Pizza Restaurants, LP offers franchises for single Boston's Restaurants and for area development rights to open multiple locations.
Corporate History
Boston Pizza Restaurants, LP, also known as Boston's The Gourmet Pizza Restaurant & Sports Bar, was formed as a Delaware limited partnership on December 21, 2001. However, its predecessor, BPR USA, had already been offering franchises for Boston's Restaurants in the United States since October 1995. The company's origins trace back even further to 1983 in Canada, where its affiliate, Boston Pizza International Inc. (now Boston Pizza Canada Limited Partnership or BPCLP), began franchising "Boston Pizza" restaurants. Boston's Restaurants specialize in full-service casual dining, offering gourmet pizza, pasta, and a variety of other dishes, combined with a sports bar atmosphere. The brand also expanded internationally, with Boston Pizza Restaurants (Mexico), Inc. offering franchises in Mexico since April 2002. Boston's has been franchising in the U.S. under its current entity since 2001, building on the foundation laid by its predecessors and affiliates.
Financial Overview
Investment Range
$1,040,500 - $2,887,025
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$30,000
Royalty %
5%
Marketing %
4%
Equipment Costs (Low)
$697,000
Equipment Costs (High)
$2,320,500
Working Capital
$41,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Boston Pizza Restaurants, LP provides audited financial statements in Item 21. The auditor's report indicates an unqualified opinion, meaning the financial statements present fairly, in all material respects, the financial position of Boston Pizza Restaurants, LP and its subsidiary in accordance with generally accepted accounting principles. There are no specific narratives or concerns raised within Item 21 regarding the franchisor's working capital or ability to continue as a going concern.
Financing Details
Boston Pizza Restaurants, LP does not offer any direct or indirect financing to its franchisees. Additionally, Boston Pizza Restaurants, LP does not guarantee any notes, leases, or other obligations that franchisees might incur.
Performance Metrics
Total US Locations
22
Franchised Units
21
Corporate Units
1
Avg Square Footage
6,000
Franchising Since
2001
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Boston Pizza Restaurants, LP has had three litigation cases. One case, filed by Mineshkumar Patel in May 2019, alleged breach of oral agreements, fraud, negligent misrepresentation, and violations of the Texas Deceptive Trade Practices Act. Boston Pizza Restaurants, LP counterclaimed for breach of a development agreement. This case was settled in August 2019 with Boston Pizza Restaurants, LP paying $5,000, and all agreements between the parties were terminated. Another case was filed by Boston Pizza Restaurants, LP in January 2020 against former franchisee Rakesh Kaushal, seeking to recover $205,000 in liquidated damages due to a breach of his franchise agreement. This case was dismissed without prejudice. Most recently, Boston Pizza Restaurants, LP filed a lawsuit on September 1, 2023, against former franchisee BOSTCG, LLC, Piyushkumar Patel, and Smitaben Patel for breach of contract, seeking $271,947 in liquidated damages. The defendants filed counterclaims alleging lack of support and fraud. This recent case reached a mediated settlement on March 11, 2024, where the defendants agreed to pay Boston Pizza Restaurants, LP $85,000, and all claims were mutually released.
Bankruptcy History
Boston Pizza Restaurants, LP has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Boston Pizza Restaurants, LP franchisees must notify the franchisor in writing between 60 and 180 days before their current term expires. They must be in good standing, meaning they have no defaults under their current agreement or any other agreements with the franchisor or its affiliates at the time of notice and signing the new agreement, and they must not have received more than three written default notices in the preceding 12 months. Franchisees are required to sign the franchisor's then-current franchise agreement and all related documents, which may have substantially different terms, and a general release of all claims. A non-refundable renewal fee of $25,000 must be paid. Additionally, franchisees must renovate their premises and upgrade equipment, tools, and technology to meet the franchisor's current standards and specifications, and have the right under their lease to maintain possession of the premises for the successor term.
Training & Support Program
Franchisor Assistance
Before a Boston Pizza Restaurants, LP franchisee opens their business, the franchisor provides an initial training program at no cost for up to seven people in the Dallas, Texas area. They also grant access to an electronic Operations Manual, offer advice on identifying a suitable location, review lease agreements to ensure compliance with franchisor standards, designate a Franchise Territory, provide specifications for the design and layout of the premises, and offer materials and consultation for pre-opening marketing. After opening, Boston Pizza Restaurants, LP informs franchisees of mandatory standards and procedures for operations. Upon reasonable request, they provide advice regarding business operations based on reports or inspections. The franchisor may offer additional training for new personnel or refresher courses (which may incur additional fees) and allows continued use of confidential materials and Marks. Boston Pizza Restaurants, LP may also modify the System, make periodic on-site visits to assist with operations, maintain and administer a Brand Fund for marketing, advise on local marketing strategies, and hold national or regional conferences.
Initial Training Hours
150
Training Location
Our offices and corporate training center in Dallas, Texas
Ongoing Support
After opening their Boston's Restaurant, Boston Pizza Restaurants, LP franchisees receive several forms of ongoing support. The franchisor will keep them informed of mandatory standards, specifications, and procedures for operating their business. Upon reasonable request, franchisees can receive advice and guidance on their business operations, provided through written materials, electronic media, telephone, or other methods during regular business hours. Boston Pizza Restaurants, LP also offers additional training for newly-hired staff on brand and system guidelines, refresher courses, and other assistance as needed, which may require additional fees. Franchisees are permitted to continue using confidential materials, including the Operations Manual and the Marks. The franchisor may conduct periodic on-site visits to assist with operations, prepare reports outlining suggested improvements, and advise on local marketing strategies. They may also hold national or regional conferences to discuss business and operational issues.
Franchise Requirements
Ideal Candidate Profile
Boston Pizza Restaurants, LP seeks individuals who will be actively, continuously, and substantially involved in operating the franchised business on a full-time basis, providing on-site management and supervision. If the franchisee is a legal entity, the Responsible Owner, who must have at least a 25% equity interest, is required to fulfill this role. While a Franchise Manager can be hired to handle daily in-person on-site management, the Responsible Owner remains accountable. The franchisor offers training to help new franchisees and their managers prepare for operations. Beyond this emphasis on active involvement and management, the FDD does not specify detailed requirements for prior industry, sales, or technical experience, nor a minimum number of years of experience.
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
non-exclusive
Territory Size Requirements
Boston Pizza Restaurants, LP typically grants a protected territory that is a one-mile radius around the Boston's Restaurant location. The size and boundaries of the Franchise Territory are determined based on geographic area, population properties, consumer demographics, city, county, and other boundaries. However, this right is not granted if the business is in a metropolitan area (over 50,000 persons per square mile) or a non-traditional location. Franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by Boston Pizza Restaurants, LP.
Staffing Notes
Boston Pizza Restaurants, LP requires franchisees to determine appropriate staffing levels for their Boston's Restaurant to ensure compliance with the franchise agreement and system standards. Franchisees are solely responsible for hiring, training, directing, scheduling, and supervising their employees and independent contractors in the day-to-day operations. This includes responsibility for all employment-related decisions, wages, benefits, and taxes. Boston Pizza Restaurants, LP does not control the daily activities of franchisee employees. Franchisees must use their legal business entity name, not the franchisor's Marks, on all employee-related documents and ensure employees understand they are employed solely by the franchisee. The franchisor may require managers and officers to sign a System Protection Agreement and other employees to sign a confidentiality agreement if they access confidential information. The initial training program, for up to seven people, covers roles such as Kitchen Manager/General Manager and Front Person, indicating a structured management and hourly employee team is expected.