Hot Stuff Pizza Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$63,097 - $173,097
Total US Locations
752
Business Summary
ORION FOOD SYSTEMS, LLC (OLM) offers a franchise opportunity to produce and sell various food items such as pizza, submarine-style sandwiches, chicken, hamburgers, and wraps. These OLM-brand food products are sold in retail food service facilities, often located within existing businesses like convenience stores, grocery stores, or institutions. Franchisees use OLM's proprietary products, recipes, and trademarks, featuring required menus and foodstuffs distributed by OLM.
Corporate History
ORION FOOD SYSTEMS, LLC (OLM) and its predecessors began offering non-franchise licenses for "Hot Stuff Pizza" and other food service businesses in 1986. The company's predecessor, Orion Food Systems, Inc. (OFSI), was incorporated in 1993. OLM started offering franchises for "Hot Stuff Pizza" and other food service businesses in 1994. The company has undergone several corporate name changes and reorganizations, including operating as Hot Stuff Foods, LLC from 2005 to 2011 before reverting to Orion Food Systems, LLC. OLM has also been involved in acquisitions and sales of other food-related entities and brands, including Lettieri's, and has changed ultimate ownership several times. OLM is currently owned by Performance Manufacturing, LLC.
Financial Overview
Investment Range
$63,097 - $173,097
Equipment Costs (Low)
$20,000
Equipment Costs (High)
$72,000
Working Capital
$38,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements included in the Franchise Disclosure Document are for OLM's ultimate parent, Performance Food Group Company, which guarantees OLM's performance. These consolidated financial statements have received an unqualified opinion from independent public accountants, indicating they present fairly, in all material respects, the financial position, results of operations, and cash flows. The auditor's report noted a critical audit matter related to vendor rebates and other promotional incentives, which involved complex judgments due to transaction volume and compliance complexities, but this does not indicate financial distress. There are no going concern qualifications. Overall, the parent company, Performance Food Group Company, demonstrates a strong financial position.
Financing Details
OLM may offer financing to franchisees through its "Free on Loan" program for certain equipment like pizza ovens, refrigerated tables, and warmers, valued between $8,000 and $12,000. Under this program, OLM retains ownership of the equipment, files UCC statements, and does not charge a down payment, interest, or finance charges for its use during the franchise term, provided the franchisee complies with the agreements. To qualify, new units must maintain average minimum weekly purchases of OLM Ingredients, Supplies, or Products of $1,250 ($65,000 annually), evaluated annually. If a franchisee fails to meet these purchase volumes or defaults, OLM may require them to relocate the unit, purchase the equipment at fair market value, or return it to OLM's facility at the franchisee's expense. Similar limited equipment assistance may be available for existing units undergoing remodeling, with purchase volume requirements based on their current weekly average. OLM does not sell, assign, or discount notes to third parties but may pledge its interest in these instruments.
Performance Metrics
Total US Locations
752
Franchised Units
752
Corporate Units
0
Franchising Since
1994
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
OLM has no litigation required to be disclosed in Item 3 of the Franchise Disclosure Document, indicating a clean legal history for the franchise.
Bankruptcy History
OLM has no bankruptcy information required to be disclosed in Item 4 of the Franchise Disclosure Document, indicating no bankruptcy history for the franchisor or its key personnel.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their agreement, OLM franchisees must ensure they are not in breach of their current franchise agreement or any related agreements when the initial term expires. Renewal requires mutual consent from both the franchisee and OLM. Franchisees may be asked to sign a new franchise agreement with terms and conditions that could be substantially different from their original agreement.
Training & Support Program
Franchisor Assistance
Before the unit opens, OLM conducts a site survey to evaluate the proposed Host Facility and advises on trademark display and initial inventory. OLM provides initial training at the franchisee's unit, typically a minimum of 30 trainer-hours over four days, covering customer service, food safety, brand recipes, inventory control, cleanliness, equipment maintenance, and marketing. Franchisees must bear their own travel and living expenses for training. During operation, OLM provides ongoing operations counseling, including guidance on ingredient handling, product preparation, sanitation, financial performance, and marketing. OLM commits to visiting (in-person or virtually) each unit at least four times per operational year, with no additional fee to the franchisee for these visits. OLM also provides periodic marketing and promotional materials, which franchisees are required to use, and bills $150 per calendar quarter for these materials. A Grand Opening Kit is also provided for $500.
Initial Training Hours
54
Training Location
Franchisee's location
Ongoing Support
After opening, OLM provides ongoing operations counseling to franchisees on various aspects such as safe and effective ingredient handling, product preparation and quality, sanitation practices, financial and operational performance, advertising techniques, customer service, and employee training. OLM commits to visiting each unit in person or virtually at least four times per operational year, on mutually agreed dates, to offer consultative assistance, provided the franchisee is not in breach of the agreement or late on payments. OLM also provides periodic marketing and promotional materials, billed quarterly, that franchisees must use to promote their business.
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
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Orion Food Systems (OLM) does not grant exclusive territories to its franchisees. Each OLM franchise is granted for a specific host facility, not a defined geographic territory. OLM franchisees will not receive any protected radius around their OLM Unit. OLM and its affiliates may operate or license other OLM or Land Mark programs and sell products that may compete with an OLM Unit in the franchisee's market area. Site factors considered for a host facility include daily non-fuel sales of over $2,000, an average of 750 customers inside the store per day, 10 or more available parking spaces, and sufficient available freezer capacity. Fuel sales of at least 100,000 gallons of gasoline per year are preferred but not required.
Staffing Notes
Orion Food Systems (OLM) requires that the franchisee or their designated Unit manager must dedicate their full time, attention, and best efforts to successfully manage and operate the OLM Unit. If a manager operates the Unit, they must successfully complete OLM's training program and meet OLM's standards before taking on the role. The franchisee is responsible for training all managers and employees to ensure accurate recording and reporting of all sales and business information. OLM's training program for new Units typically provides a minimum of 30 trainer-hours over four days, usually conducted three to five days before opening, with shorter programs for other circumstances. The franchisee must bear their own travel, room, and board expenses for training. The Unit must be fully installed, equipped, licensed, and insured before training begins. OLM may require retraining for managers and employees, which the franchisee will be billed for. OLM Units must be open for at least 12 business hours each day the Host Facility is open, unless OLM provides prior written consent or due to reasons beyond the franchisee's reasonable control.