GRIMALDI's PIZZERIA Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,389,800 - $1,835,000
Franchise Fee
$50,000
Total US Locations
46
Business Summary
Grimaldi's Restaurants operate casual family restaurants that offer an authentic New York pizzeria experience. These restaurants serve lunch and dinner, featuring fresh-made, hand-tossed pizzas and calzones baked in a coal-fired brick oven, house-made salads, and cheesecakes. Grimaldi's Restaurants also provide a full bar, including proprietary wines, and offer take-out and delivery services through third-party companies. Locations are typically found in high-traffic retail spaces, ranging from 3,600 to 3,800 square feet, with an additional 800 to 1,000 square feet of patio space.
Corporate History
CBOP Domestic, Inc., the franchisor for Grimaldi's, was formed as an Arizona corporation on January 11, 2019, and began offering Grimaldi's Restaurant franchises in March 2019. The System for Grimaldi's Restaurants is owned by its affiliate, Coal Brick Oven Pizzeria, Inc. (CBOP), which was formed in Nevada in 2006 and operates company-owned Grimaldi's Restaurants. The Marks are owned by another affiliate, JMC Restaurant Holdings, L.L.C. (JMC), formed in Arizona in 2011. An international affiliate, CBOP Global, Inc., has been selling franchises outside the U.S. since March 2016. A newer affiliate, CBOP Retail, Inc., formed in 2023, is an approved supplier of jarred pasta sauces.
Financial Overview
Investment Range
$1,389,800 - $1,835,000
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$1,090,000
Equipment Costs (High)
$1,455,000
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Grimaldi's financial condition, as noted in the FDD's Special Risks section, calls into question its financial ability to provide services and support to franchisees. The company's balance sheets show a significant accumulated deficit, indicating that liabilities exceed assets. For example, in 2024, Grimaldi's reported an accumulated deficit of $(671,754). The financial statements also show a large noncurrent liability of $952,746 owed to a related party. While Grimaldi's has reported positive net income in recent years (e.g., $68,551 in 2024) and positive cash flow from operations, the overall negative equity position is a financial concern for potential franchisees.
Financing Details
Grimaldi's does not offer any direct or indirect financing for the franchisee's business. Grimaldi's also does not guarantee any promissory notes, leases, or other obligations franchisees may make to third parties. Franchisees must arrange their own funding for the business.
Performance Metrics
Total US Locations
46
Franchised Units
4
Corporate Units
42
Avg Square Footage
4,600
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Summary
Grimaldi's has no litigation to report in Item 3 of its FDD. Item 3 explicitly states: "No litigation is required to be disclosed in this Item."
Bankruptcy History
Grimaldi's disclosed one bankruptcy matter involving DATG Pizzeria, Inc., an affiliate owned by Grimaldi's Chief Executive Officer and President, Joseph Ciolli. This affiliate filed a voluntary Chapter 11 bankruptcy petition on October 6, 2022, stemming from a lease dispute. The matter was formally discharged on August 21, 2023, and DATG Pizzeria, Inc. remains fully operational.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Grimaldi's franchise agreement, franchisees must provide written notice between six to nine months before the initial term ends. They must be in substantial compliance with their franchise agreement and any development agreement, demonstrate the right to possess the premises for the new term, and meet all current brand standards and training requirements. Additionally, franchisees must renovate and update their restaurant to reflect current brand image, sign a general release of claims against Grimaldi's, pay a successor franchise fee, and sign Grimaldi's then-current franchise agreement, which may have different terms, including potentially higher royalty fees and advertising obligations.
Training & Support Program
Franchisor Assistance
Before a Grimaldi's Restaurant opens, Grimaldi's helps with site selection criteria, conducts one market visit and on-site review for proposed sites (for the first two restaurants), reviews leases, and provides prototypical construction plans. Grimaldi's also approves construction plans and provides final inspections. Franchisees receive a recommended marketing plan template and approved materials for their opening period and electronic access to the operations manual. Grimaldi's offers consultation on development, operations, layout, equipment, and staffing, and provides an initial management training program. After opening, Grimaldi's collects and manages the Brand Fund for advertising, reviews and approves annual advertising plans, and provides samples of marketing materials. Grimaldi's hosts a store locator page online and offers various training courses, conventions, and regional meetings. Grimaldi's periodically advises and consults on operations, design, food preparation, management, and promotions, and inspects restaurants for System compliance. Grimaldi's also has the right to modify the System, including manuals, menus, and equipment.
Initial Training Hours
246
Training Location
Scottsdale, Arizona
Ongoing Support
After opening, Grimaldi's provides ongoing support through periodic advice and consultation on restaurant operations, including new developments in design, food preparation, management, sales promotion, and employee training. This support can be delivered via visits from Grimaldi's representatives, printed or electronic materials, meetings, seminars, phone, or email. Grimaldi's also conducts periodic inspections to help operations and ensure System compliance. Franchisees are required to attend various training courses, periodic conventions, and regional meetings. Grimaldi's maintains an independent store locator webpage, manages the Brand Fund for advertising and promotion, and reviews and approves annual advertising plans.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
non-exclusive
Staff Count
59
Territory Size Requirements
For Development Agreements, Grimaldi's defines territories as a "Development Area" which is mutually agreed upon with the developer. These areas are determined by considering factors like population density and the number of restaurants the developer commits to opening. The boundaries of a Development Area can be defined by specific street boundaries, county or state lines, municipal boundaries, or railroad tracks, and may range from a portion of a metropolitan area to an entire county or state in less populated regions.
Staffing Notes
Grimaldi's requires a full staff to be in place and available for training at least ten days before a franchised restaurant opens. Each Grimaldi's location must always be supervised on-site by an Operating Principal or a General Manager who has completed all required training. Franchisees are responsible for hiring all employees, determining their employment terms and compensation, and providing proper training in restaurant operations, human resources, and customer relations. Franchisees must establish an employee training program that meets Grimaldi's standards and ensure that all staff members are suitable, conduct themselves competently and courteously, and adhere to dress code, personal appearance, and hygiene standards. Grimaldi's specifies the number of managers required and emphasizes that franchisees are solely responsible for all employment decisions and functions, including hiring, firing, and compliance with employment laws.