Risk Score
Pending analysis
Investment Range
$86,500 - $549,000
Total US Locations
37
Business Summary
Figaro's Italian Pizza, Inc. offers franchises for Figaro's and Nick-N-Willy's stores. These businesses specialize in the retail sale of pizza, calzones, lasagna, salads, desserts, and other food and beverage products. The stores operate using unique systems, including specific recipes, food preparation procedures, and distinctive branding. The primary focus for Figaro's and Nick-N-Willy's is on take-and-bake, takeout, and delivery services, with an affiliate concept (Schmizza) focusing on pizza by the slice.
Corporate History
Figaro's Italian Pizza, Inc. was incorporated in Oregon on March 21, 1986, as Italian Pizza, Inc., continuing the Figaro's Pizza concept which had previously operated as an unincorporated entity from 1981 to 1986 in Salem, Oregon. The company conducted pizza businesses from 1986 to 2001. In October 2006, Figaro's Italian Pizza, Inc. acquired the Sargo's Subs brand and system, operating as a franchisor for that system until February 2013. In January 2012, the company acquired the Nick-N-Willy's brand and system, continuing as a franchisor for that concept since then. Figaro's Italian Pizza, Inc. began offering Figaro's franchises in May 1986 and Nick-N-Willy's franchises in February 2012.
Financial Overview
Investment Range
$86,500 - $549,000
Franchise Fee (High)
$39,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$30,000
Equipment Costs (High)
$365,000
Working Capital
$32,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Figaro's Italian Pizza, Inc.'s audited financial statements show a net loss of $(24,966) for the year ended December 31, 2024, and a net loss of $(145,957) for the year ended December 31, 2023. The company's Advertising Fund had a negative net asset balance of $(22,633) at the end of 2024. Despite these losses, the independent auditor provided an unqualified opinion, indicating that the financial statements are presented fairly and without substantial doubt about Figaro's Italian Pizza, Inc.'s ability to continue as a going concern.
Financing Details
Figaro's Italian Pizza, Inc. does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other obligations for franchisees. However, Figaro's Italian Pizza, Inc. franchisees are eligible for expedited and streamlined loan processing through the Small Business Administration's Franchise Registry Program.
Performance Metrics
Total US Locations
37
Franchised Units
37
Corporate Units
0
Avg Square Footage
1,350
Franchising Since
1986
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Figaro's Italian Pizza, Inc. has no litigation to report. The FDD explicitly states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
Figaro's Italian Pizza, Inc. has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy is required to be disclosed for the company or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Figaro's Italian Pizza, Inc. franchisees must meet several conditions. They must have substantially complied with all provisions of their existing franchise agreement and system standards throughout its entire term. Before the agreement expires, franchisees need to bring their store location into full compliance with current specifications and standards for new or renewing facilities and demonstrate the right to remain in possession of the premises for the renewal term. They must provide timely notice of their intent to renew and satisfy all monetary obligations owed to Figaro's Italian Pizza, Inc. and its affiliates. Franchisees are also required to meet current training requirements, sign a mutual general release, and execute Figaro's Italian Pizza, Inc.'s then-current form of Franchise Agreement, which may include materially different terms, such as a different percentage for continuing licensing fees and advertising contributions.
Training & Support Program
Franchisor Assistance
Figaro's Italian Pizza, Inc. provides comprehensive support to its franchisees. Before a store opens, the company assists with site approval, lease approval, and provides basic architectural plans. It also conducts a mandatory two-week training program for the franchisee and their designated manager. For the first franchised store, Figaro's Italian Pizza, Inc. sends a representative for 9 to 14 days during the initial one to two months of operation to assist with establishing procedures and training personnel. Ongoing support includes lending a copy of the Confidential Operations Manual with regular updates, providing lists of approved suppliers and specifications for products, coordinating product distribution, and regulating quality standards across the network. Figaro's Italian Pizza, Inc. also conducts periodic visits for consultation, assistance, and guidance, prepares written reports, and may use mystery shoppers to measure performance. The company reserves the right to develop new services, products, and modify the system, requiring franchisees to adopt these changes.
Initial Training Hours
114
Training Location
An existing store designated by Figaro's Italian Pizza, Inc.
Ongoing Support
After opening, Figaro's Italian Pizza, Inc. franchisees receive ongoing support including access to and updates for the Confidential Operations Manual. The franchisor provides lists of approved equipment, foods, and supplies, and may coordinate product distribution and regulate quality standards across the network. Figaro's Italian Pizza, Inc. offers advice and guidance on operational problems, proper utilization of procedures for menu items, employee training and appearance, additional authorized products, purchasing, administrative procedures, and advertising programs. Company representatives conduct periodic visits for consultation and guidance, providing written reports outlining suggested changes or detailing defaults. Figaro's Italian Pizza, Inc. may also employ mystery shoppers to measure performance and may develop new services or programs to resolve operational issues.
Franchise Requirements
Ideal Candidate Profile
Figaro's Italian Pizza, Inc. seeks qualified individuals or entities who are committed to full-time hands-on management, or who can appoint a capable full-time manager, to operate their franchised business. The ideal candidate or their operating principals must be diligent in overseeing all accounting, reporting, bookkeeping, and financial aspects. They are required to attend and complete all initial and retraining courses and participate in annual or special meetings. Key involvement is expected in site selection, construction, and remodeling, as well as all personnel decisions. Franchisees must also conduct frequent inspections of their business operations to ensure high standards of professionalism, cleanliness, and compliance with approved methods, dedicating sufficient hours to operate or supervise managers for maximum efficiency and capacity.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
Each Figaro's Italian Pizza, Inc. franchise receives a Designated Area, which is defined as a one-mile radius from the authorized store location. If a portion of this radius has been previously assigned, the actual area may be smaller. For multiple franchise purchases, the Designated Territory's size and dimensions vary based on factors like population, growth trends, affluence of nearby population, topographics, geographics, density, and demographics. Figaro's Italian Pizza, Inc. reserves the right to operate or license competing businesses outside of this Designated Area, as well as solicit, sell, establish, or service stores within or adjacent to specific types of locations like schools, hospitals, large retail chains, and through alternative distribution channels such as the Internet, even within a franchisee's Designated Area.
Staffing Notes
Figaro's Italian Pizza, Inc. requires each franchised store to be under the direct, on-premises supervision of the franchisee or a trained and competent employee acting as a crew leader or manager. Franchisees are exclusively responsible for hiring, training, and managing their employees and independent contractors, including setting wages, compensation, and ensuring compliance with all state and federal employment laws. The franchisor does not have the power to hire, fire, direct, supervise, or discipline franchisee employees. All employees and independent contractors providing customer service must be proficient in English, and franchisees are prohibited from hiring individuals found guilty of fiduciary misconduct, unlawful sexual conduct, or felonies. Employees must complete a training program directed by the franchisee or designated manager, and managers are required to complete a yearly certification test. Franchisees must ensure employees present a neat and clean appearance and provide friendly, efficient, sober, and courteous service, while also maintaining sufficient staff to handle customer volume at all times.