Brixx Wood Fired Pizza logo

Brixx Wood Fired Pizza Franchise

Audited Financials
Food and BeverageEst. 2006Charlotte, NC
www.brixxpizza.com

Risk Score

Pending analysis

Investment Range

$979,550 - $1,571,000

Franchise Fee

$25,000

Min Cash Required

$25,000

Total US Locations

19

Business Summary

Brixx Wood Fired Pizza operates retail restaurants that serve hand-crafted brick oven wood fired pizzas, as well as pastas, salads, sandwiches, and chicken wings in a casual sit-down format. Brixx Wood Fired Pizza restaurants also offer full bar service including alcoholic and non-alcoholic beverages. Franchisees will offer take-out services and are required to use designated third-party delivery services like DoorDash and UberEats, and provide catering services.

Corporate History

Brixx Franchise Systems, LLC was organized in North Carolina on August 17, 2006, and has been franchising Brixx restaurants since its inception. The franchisor's parent company, New South Pizza, Inc., was incorporated in 1997 and has operated Brixx restaurants since then. New South Pizza, Inc. also assists Brixx Franchise Systems, LLC with advertising, training, and operations through a shared services agreement. Brixx Franchise Systems, LLC holds a license from Yountville Partners, Inc., which grants it the right to use and sublicense the Brixx trademarks throughout the United States, excluding the San Francisco, California area.

Financial Overview

Investment Range

$979,550 - $1,571,000

Franchise Fee (Low)

$25,000

Franchise Fee (High)

$45,000

Minimum Cash Required

$25,000

Royalty %

5%

Marketing %

1.1%

Equipment Costs (Low)

$787,550

Equipment Costs (High)

$1,265,000

Working Capital

$50,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Brixx Franchise Systems, LLC has audited financial statements that received an unqualified opinion from the auditors. However, the FDD itself highlights a special risk regarding Brixx Franchise Systems, LLC's financial condition, stating that it "calls into question the Franchisor's financial to provide services and support to you." As of December 31, 2023, Brixx Franchise Systems, LLC had positive working capital of approximately $257,951 (Current Assets: $396,383; Current Liabilities: $138,432), but reported a net loss of $9,813 for the year, compared to a small net profit of $3,492 in 2022.

Financing Details

Brixx Franchise Systems, LLC does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations for franchisees.

Performance Metrics

Total US Locations

19

Franchised Units

10

Corporate Units

9

Avg Square Footage

3,500

Franchising Since

2006

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew their Brixx Franchise Agreement, franchisees must provide written notice of their intent to renew between 90 and 180 days before the current term expires. They are required to pay a renewal fee of at least $6,000 or 15% of the then-current initial franchise fee, whichever is greater, and acknowledge receipt of the current Franchise Disclosure Document. Franchisees must also make necessary improvements to modernize or renovate their restaurant to meet Brixx Franchise Systems, LLC's current standards and be in good standing under the Franchise Agreement. They must retain the right to possess their premises and sign a general release of all claims against Brixx Franchise Systems, LLC. The renewal may involve signing a new franchise agreement with potentially different terms, including changes to territory boundaries or royalty fees.

Training & Support Program

Franchisor Assistance

Before opening, Brixx Franchise Systems, LLC assists franchisees with site acceptance, providing lists of approved suppliers and product/equipment specifications, and an initial training program. They also help with business startup plans, restaurant opening procedures, and equipment ordering, and provide up to five days of on-site grand opening training. During operation, Brixx Franchise Systems, LLC makes improvements to the Brixx System available and offers recommendations for pricing. Optional assistance includes annual conferences, periodic inspections for compliance, consultation and guidance in all aspects of operation, development of new products, and administrative, bookkeeping, accounting, and inventory control procedure support.

Initial Training Hours

284

Training Location

Approved training restaurant or designated location

Ongoing Support

After opening, Brixx Franchise Systems, LLC provides ongoing support by making available all improvements and additions to the Brixx System and offers recommendations and advice on setting prices. Optionally, the franchisor may hold annual conferences, conduct periodic inspections for compliance and provide consultation, assistance, and guidance in all aspects of operations and management. Brixx Franchise Systems, LLC may also develop and share information about new products and methods, provide additional guidance through manuals, bulletins, phone calls, or consultations, and establish administrative, bookkeeping, accounting, and inventory control procedures.

Franchise Requirements

Ideal Candidate Profile

Brixx Franchise Systems, LLC prefers to select operators who are committed to a 'hands-on' and well-informed approach to the business, strongly recommending that franchisees devote a substantial amount of time to their restaurant. Ideal candidates should possess good moral character and sufficient business experience, aptitude, and financial resources to operate a Brixx restaurant. They should also not be involved in any competitive business.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Hands-On

Territory Type

Limited

Territory Size Requirements

Brixx Wood Fired Pizza territories are defined based on the metropolitan area's population. In metropolitan areas with a population exceeding 1,000,000 people, the territory will have a 1.5-mile radius from the restaurant. For areas with a population of 1,000,000 or less, the territory will consist of a 3-mile radius from the restaurant. However, Brixx Franchise Systems, LLC reserves the right to operate or license others to operate within 'Reserved Locations' such as airports, malls, and stadiums, and through 'Alternate Channels of Distribution' like food trucks and the Internet, even within a franchisee's designated territory.

Staffing Notes

Brixx Franchise Systems, LLC requires that each Brixx restaurant be directly supervised on-site and managed by a person who meets the franchisor's standards and has successfully completed their Management Training Program. This manager may be an owner or an employee. The franchisor requires franchisees to have a General Manager, two Assistant Managers, and a Kitchen Manager, all of whom must be trained by approved trainers. Franchisees are solely responsible for recruiting, hiring, and managing all employees, ensuring they are competent, properly trained, and operate in compliance with brand standards and all applicable employment laws.