Risk Score
Pending analysis
Investment Range
$120,980 - $359,910
Franchise Fee
$40,000
Total US Locations
58
Business Summary
D.P. Dough Restaurants operate under the "D.P. Dough" name, offering a menu that primarily features freshly baked calzones, desserts, wings, and various other food and beverage items. D.P. Dough Restaurants cater to customers through carry-out, delivery, and some on-premises dining, typically situated near college or university populations. Calzone King, LLC, the franchisor, mandates that franchisees adhere to its specific business formats, operational methods, and product specifications to ensure consistent quality across all D.P. Dough locations.
Corporate History
Calzone King, LLC, which operates as D.P. Dough, was formed as a New York limited liability company on January 28, 2019, and started offering franchises on July 1, 2019. However, the D.P. Dough brand has a longer history through its predecessors. The Original Calzone Company was the initial franchisor from 1989 to 2011, with the first D.P. Dough restaurant opening in 1989. Subsequently, D.P. Dough Franchising, LLC took over as franchisor in November 2011, continuing until Calzone King, LLC acquired the brand's franchise assets in July 2019.
Financial Overview
Investment Range
$120,980 - $359,910
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$35,000
Equipment Costs (High)
$180,000
Working Capital
$25,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The auditors for Calzone King, LLC provided an unqualified opinion, indicating that its financial statements fairly represent the company's financial position. The company has no goodwill or intangible asset impairment losses to report for the past three years. However, Calzone King, LLC experienced negative cash flow in 2024, with cash decreasing from $302,840 to $175,264. This was largely due to significant member withdrawals of over $1.3 million in 2024 and over $1.5 million in 2023. Additionally, Calzone King, LLC faces an unrecorded dispute with the original brand creator regarding past royalty payments, which currently has no legal determination.
Financing Details
Calzone King, LLC does not offer any direct or indirect financing to its franchisees. Franchisees will need to secure their own financing and Calzone King, LLC will not guarantee any loans, leases, or other financial obligations.
Performance Metrics
Total US Locations
58
Franchised Units
49
Corporate Units
9
Avg Square Footage
1,600
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Calzone King, LLC has two recent lawsuits to report. In February 2024, Calzone King, LLC and its affiliate, Dough King, LLC, sued a former franchisee and its guarantor for failing to pay royalties, not operating the restaurant for the agreed minimum term, and defaulting on a promissory note. Calzone King, LLC secured a default judgment for $237,650, and Dough King, LLC secured one for $228,867 in August 2024. Additionally, in August 2024, Calzone King, LLC initiated another lawsuit against a different former franchisee and its guarantors. This case involves claims of unpaid royalties, failure to operate for the minimum term, and violation of non-compete clauses. Calzone King, LLC was granted a Temporary Restraining Order, and a motion for default judgment is currently awaiting court decision.
Bankruptcy History
Calzone King, LLC has no bankruptcy history to report for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Calzone King, LLC franchisees can renew their agreement for an additional 10-year term if they request it in writing during the last year of their initial term. To be eligible, they must not have committed a material breach of their agreement during the final five years of the initial term. Upon renewal, franchisees will need to pay a $2,500 renewal fee and sign a new franchise agreement, which may contain materially different provisions from their initial agreement. However, the boundaries of their territory will remain the same, and the continuing royalty rate will not exceed what is required of new franchisees signing the then-current agreement.
Training & Support Program
Franchisor Assistance
Calzone King, LLC provides extensive assistance to its franchisees both before and after opening their D.P. Dough Restaurant. Before opening, Calzone King, LLC helps with approving the location and restaurant layout, supplies the D.P. Dough Operating Manual, assists with selecting fixtures, signs, inventory, and equipment by providing approved suppliers and specifications, and provides initial training. This training includes 7 to 17 days of in-store immersion training, online classes, and at least 7 days of on-site support at the franchisee's location, with the franchisee covering living and travel expenses. Calzone King, LLC also assists with setting initial menu prices. After the D.P. Dough Restaurant opens, ongoing support includes optional on-site assistance if requested (with the franchisee covering travel expenses), periodic meetings and consultations (without fixed frequency), and continued access to the regularly updated online Operating Manual.
Initial Training Hours
288
Training Location
Designated D.P. Dough location, online, and at the franchisee's restaurant
Ongoing Support
After opening a D.P. Dough Restaurant, Calzone King, LLC offers support services including optional on-site assistance at the franchisee's request (with the franchisee covering travel expenses). Calzone King, LLC periodically meets or consults with franchisees regarding restaurant operations, though there is no set schedule or frequency for these consultations. Franchisees also have continuous access to the Operating Manual, which is regularly updated via an online intranet. Additionally, Calzone King, LLC requires franchisees or their managers to attend an annual D.P. Dough Owner Conference and provides ongoing monthly support for the point-of-sale system.
Franchise Requirements
Ideal Candidate Profile
Calzone King, LLC is looking for franchisees who, or whose designated Owner Operator, will be personally and actively involved in the day-to-day conduct and operation of their D.P. Dough Restaurant. If the franchisee is not an individual, an owner with at least a 10% ownership stake must fulfill this role. The ideal candidate must be able to successfully complete Calzone King, LLC's mandatory training program, pass a test, and ensure that either they or a trained manager are present at the restaurant during all operating hours. Effective communication skills with customers, employees, and governmental agencies are essential. The D.P. Dough brand typically thrives in areas with a significant college or university population.
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
Limited
Territory Size Requirements
Calzone King, LLC defines the territory for each D.P. Dough Restaurant as generally a three-mile radius around the location. However, the exact size of the territory is not fixed and will vary based on the population density of the city where the restaurant is situated. In cities with higher population density, the territory will be smaller, while in less dense areas, it will be larger. The specific extent of each territory is detailed in Section 6 of the individual Franchise Agreement.
Staffing Notes
Calzone King, LLC requires that either the Owner Operator or a trained and certified manager must be present at the D.P. Dough Restaurant during all hours of operation. Both the Owner Operator and any managers must possess adequate communication skills to interact with customers, employees, and government representatives. While Calzone King, LLC may require manager certification, it explicitly states it has no control over the hiring, firing, scheduling, or compensation of a franchisee's employees; the franchisee retains sole control and liability for all human resources matters within their D.P. Dough business.