Chanticlear Pizza Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$246,500 - $325,500
Franchise Fee
$20,000
Total US Locations
11
Business Summary
Chanticlear Pizza operates delivery/takeout pizza restaurants that offer pizza and a limited menu of specified items. Franchisees operate these restaurants using the Chanticlear Pizza name, marks, and system.
Corporate History
Chanticlear Franchise System, LLC (CFS) was organized as a Minnesota limited liability company on May 1, 2003. Chanticlear Pizza began selling franchises intermittently since October 2003 for the operation of delivery/takeout pizza restaurants. CFS does not have any parent companies or predecessors requiring disclosure in this document, nor has it offered franchises in any other line of business. An affiliate, DalMar Corporation, owned and operated Chanticlear Pizza restaurants from 1995 to 2004, licensed a third party to sell Chanticlear Pizza products in retail outlets from 2012 to 2023, and began granting licenses for Chanticlear Pizza Grill sit-down restaurants in December 2013.
Financial Overview
Investment Range
$246,500 - $325,500
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$20,000
Royalty %
4%
Marketing %
1%
Equipment Costs (Low)
$180,500
Equipment Costs (High)
$230,500
Working Capital
$32,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The audited financial statements for Chanticlear Pizza as of December 31, 2023, indicate current assets of $141,593 and current liabilities of $173,789, resulting in negative working capital of $32,196. Member's equity at that date was $3,897. The unaudited financial statement as of August 31, 2024, shows a further decline, with total equity at negative $72,175. Chanticlear Pizza's auditors have not raised a going concern qualification in their report.
Financing Details
Chanticlear Pizza does not offer any direct or indirect financing to franchisees. It also does not guarantee any notes, leases, or other obligations that a franchisee might incur.
Performance Metrics
Total US Locations
11
Franchised Units
10
Corporate Units
1
Avg Square Footage
1,100
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Chanticlear Pizza had one past legal issue in 2003 where the Minnesota Commissioner of Commerce alleged it offered and sold unregistered and non-exempt franchises in the State of Minnesota. Chanticlear Pizza consented to a Cease and Desist Order, prohibiting further franchise offerings or sales in Minnesota until registration compliance or exemption was met, and paid an $8,000 civil penalty. No other reportable litigation is disclosed for Chanticlear Pizza.
Bankruptcy History
Chanticlear Pizza has no bankruptcy information required to be disclosed in this document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Chanticlear Pizza franchisees must provide written notice at least 180 days before the end of the term, complete any required remodeling and renovation to the restaurant, be in full compliance with all agreements, sign the franchisor's then-current form of franchise agreement (which may have materially different terms), secure an approved location, and pay a $5,000 renewal fee. Franchisees must also comply with current qualification and training requirements and execute a general release as permitted by applicable law.
Training & Support Program
Franchisor Assistance
Before opening, Chanticlear Pizza consults with franchisees on site selection and approves proposed sites, designating a territory and delivery area. It reviews proposed leases for required provisions and provides specifications for equipment, signs, furnishings, and fixtures, as well as names of approved suppliers. Initial training is provided at no charge, and franchisees are loaned operations and product manuals. The franchisor also approves all advertising and promotional materials. During operation, Chanticlear Pizza administers the Advertising Fund, offers continuing education meetings, provides initial training for replacement or additional managers, and offers additional assistance upon request (for a fee). Franchisees also receive a web page template and participate in an annual email marketing campaign.
Initial Training Hours
300
Training Location
At a Chanticlear Pizza restaurant of the franchisor's choosing, which may be an affiliate-owned or another franchisee's restaurant.
Ongoing Support
Chanticlear Pizza provides continuing education meetings for franchisees and their personnel at designated locations. It maintains and administers the Advertising Fund. Initial training is offered for replacement or additional managers. Upon request, and for a fee, additional assistance in restaurant operation is available. Franchisees also receive a web page template and participate in an annual email marketing campaign. Chanticlear Pizza may offer other training and refresher courses, including quarterly meetings (which are optional unless specified). Franchisees may be required to attend an annual convention, for which a fee will be charged.
Franchise Requirements
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
Chanticlear Pizza territories are defined by a "Designated Territory" of approximately a 1-mile radius around the restaurant, measured by automobile travel. Additionally, a "Delivery Area" is designated, generally within an 8-minute driving distance from the restaurant. For mall and downtown locations, the Designated Territory may be smaller and determined on a site-specific basis. These areas ensure that Chanticlear Pizza will not establish another delivery/take-out restaurant within the Designated Territory or offer delivery services within the Delivery Area.
Staffing Notes
Chanticlear Pizza requires that the restaurant be under the direct, day-to-day, full-time supervision of the owner or an approved manager who has successfully completed the initial training program. If the owner does not employ a manager, they must work a minimum of 25 hours per week in the restaurant. The owner, their manager, or another employee must also successfully complete a "servsafe" certification program or an approved equivalent.