Denino's Pizzeria Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,008,500 - $1,988,600
Franchise Fee
$45,000
Total US Locations
4
Business Summary
Denino's Franchising, LLC offers franchises for Denino's, a specialty pizzeria. Each Denino's Restaurant serves renowned thin crust pizza, wings, calamari, Italian specialties, and other menu items. These restaurants offer on-premises dining, carryout, catering, and delivery services.
Corporate History
Denino's Franchising, LLC was established on January 6, 2015, as a Delaware limited liability company. The company operates the Denino's Restaurant franchise system, granting franchises to third parties. Denino's Franchising, LLC began offering franchises in January 2015. It does not have any predecessors or a parent company, and has not conducted business in any other line or offered franchises in other lines of business. The company has affiliates that operate Denino's Restaurants, one in Staten Island, New York, since 1968, and another in Brick, New Jersey, since 2010.
Financial Overview
Investment Range
$1,008,500 - $1,988,600
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$45,000
Royalty %
6%
Marketing %
0.5%
Equipment Costs (Low)
$616,000
Equipment Costs (High)
$1,100,000
Working Capital
$375,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Denino's Franchising, LLC's financial statements for 2021, 2022, and 2023 are audited and presented fairly in accordance with GAAP, as stated by the independent auditors. The auditors' report does not include a going concern qualification, indicating no substantial doubt about Denino's Franchising, LLC's ability to continue operations. The financial statements show positive net income for 2023 and 2022, after a loss in 2021.
Financing Details
Denino's Franchising, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
4
Franchised Units
1
Corporate Units
3
Avg Square Footage
5,000
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Denino's Franchising, LLC was involved in one lawsuit filed on December 30, 2019, by a potential franchisee. The plaintiff, Charles J. Arnone, Jr., along with 300 Route 72 LLC and Annaphia, LLC, filed a summons and complaint in the Supreme Court of New York, Richmond County. The claims included fraudulent misrepresentation, breach of contract, and tortious interference with contract, seeking monetary relief and attorneys' fees and costs. The parties reached a confidential settlement agreement, and a Stipulation of Discontinuance with Prejudice was entered on February 6, 2023. This case is now closed.
Bankruptcy History
Denino's Franchising, LLC has no bankruptcy history to report for the franchisor or its management. The FDD explicitly states that no bankruptcy information is required to be disclosed in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Denino's franchisees must meet several conditions. They need to be in compliance with all terms of their Franchise Agreement and any related agreements, and not be in default. Franchisees must provide 180 days advance written notice of their intent to renew, secure the legal right to occupy their Restaurant location for the entire renewal term, and remodel or upgrade their Restaurant to meet Denino's then-current standards. They are also required to pay a renewal fee, which is 25% of the then-current initial franchise fee but not less than $11,250. Additionally, franchisees and their owners and spouses must sign a new franchise agreement with current terms and a general release in favor of Denino's, as well as complete any additional training required by the franchisor.
Training & Support Program
Franchisor Assistance
Denino's Franchising, LLC provides franchisees with a range of assistance. Before opening, Denino's grants the right to operate a restaurant within an approved location and designated territory. Franchisees receive access to confidential operations manuals and a list of approved suppliers for signage, equipment, furniture, and fixtures. Denino's also reviews and approves site selections and identifies the restaurant on its website. Initial training for the managing owner and one manager is provided at no additional charge (excluding travel and living expenses) at Denino's facility in Staten Island, New York, lasting approximately two weeks. After opening, Denino's may require supplemental on-site training for a fee of $300 per trainer per day plus expenses. They communicate updated operating standards, provide lists of approved vendors, and may coordinate an annual system conference (with an attendance fee of up to $1,500, plus franchisee travel/lodging). Denino's also administers a Brand Development Fund, to which franchisees contribute a percentage of sales (currently 0.5%) for system-wide marketing and technology development. Denino's maintains control over marketing standards and approves all franchisee marketing materials.
Initial Training Hours
80
Training Location
Staten Island, New York
Ongoing Support
After opening, Denino's Franchising, LLC may provide ongoing support through several channels. This includes potentially requiring supplemental on-site training at the franchisee's restaurant for a fee of $300 per trainer per day, plus travel and accommodation expenses. Denino's also establishes and communicates updated operating standards, procedures, and system requirements, including changes to approved products, supplies, and designated suppliers. The franchisor provides names and addresses of approved vendors and may coordinate an annual system conference for franchisees, which has an attendance fee. Denino's also administers a Brand Development Fund for system-wide marketing and technology development, and may require participation in local and regional advertising cooperatives.
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
supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Denino's does not specify a minimum size for a designated territory. Generally, the territory will be a one-mile radius from the restaurant location in all directions accessible by road. However, the size may be smaller depending on factors such as population density, demographics, and geographical boundaries. For locations within shopping malls or similar facilities with captive markets, the designated territory may be limited to the physical boundaries of that mall or facility. Denino's may define the territory using zip codes, boundary streets, highways, county lines, or other recognizable demarcations, with the restaurant potentially located at the center or elsewhere within the territory.
Staffing Notes
Denino's Franchising requires that the franchisee's Managing Owner or an Operating Manager be personally responsible for the management and overall supervision of each Denino's Restaurant. The Managing Owner must complete Denino's initial training program to the franchisor's satisfaction and be approved. While the franchisor recommends personal, day-to-day participation by the Managing Owner, the franchisee may hire an Operating Manager to supervise and manage on-site operations. An Operating Manager must meet Denino's minimum standards and criteria for managers, complete the initial training program, and sign confidentiality agreements. If a franchisee operates multiple Denino's Restaurants, each location must be managed and supervised on-site by an Operating Manager. The franchisee is responsible for the ongoing training of all employees to conform to Denino's standards. Managers and all other employees and agents with access to confidential information are required to sign a confidentiality agreement. Denino's provides initial training for the Managing Owner and one designated manager at no additional charge, but charges a fee for additional persons. Franchisees are responsible for all travel expenses and employee wages incurred during training.