Jet's Pizza Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$572,500 - $786,000
Franchise Fee
$15,000
Total US Locations
422
Business Summary
Jet's Pizza operates restaurants that serve pizza, calzones, salads, and other food items, primarily focusing on carry-out and delivery services. A typical Jet's Pizza location is a restaurant found in strip shopping centers in urban or suburban areas, typically ranging from 1,200 to 1,500 square feet.
Corporate History
Jet's America, Inc., operating as Jet's Pizza, was incorporated in Michigan on June 8, 1990. The company began offering Jet's Pizza franchises in the same year, building upon prior experience with the opening of Jetts Party Shop & Pizzeria in 1978. Jet's America, Inc. does not have any parent companies, predecessors, or affiliates that offer franchises in other lines of business. As of December 31, 2023, its affiliates own and operate 54 Jet's Pizza franchises that are similar to those currently being offered to franchisees.
Financial Overview
Investment Range
$572,500 - $786,000
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$30,000
Royalty %
12%
Marketing %
10%
Equipment Costs (Low)
$495,000
Equipment Costs (High)
$655,000
Working Capital
$13,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Jet's America, Inc. demonstrates a strong financial position, evidenced by its audited financial statements receiving an Unqualified Opinion for the fiscal years ending December 31, 2021, 2022, and 2023. This indicates that the financial statements are presented fairly in all material respects. The company reported healthy net incomes of $4,483,366 in 2023, $5,008,338 in 2022, and $6,103,298 in 2021. Total assets were substantial, reaching $18,587,114 in 2023, $19,712,606 in 2022, and $17,358,388 in 2021, with stockholders' equity consistently strong across these years. There are no mentions of 'Going Concern' qualifications in the auditor's report, suggesting no significant concerns about Jet's America, Inc.'s ability to continue operations.
Financing Details
Jet's Pizza does not offer any direct or indirect financing options to its franchisees. Additionally, Jet's Pizza does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
422
Franchised Units
369
Corporate Units
53
Avg Square Footage
1,350
Franchising Since
1990
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Jet's Pizza has been involved in two litigation cases. The first case, "Gregory Joseph Fekin v. Members of Kentucky #3, LLC., et al.", was filed on May 4, 2022. It involved claims of unfair and oppressive conduct, breach of contract, and breach of fiduciary obligations. Jet's Pizza was specifically named in a breach of contract claim related to a promissory note. This case was settled confidentially on November 21, 2022, with Jet's Pizza paying $222,250.00, and was dismissed on December 30, 2022. The second case, "Robert McDonald v. Jet's America, Inc.", was a class action lawsuit filed on February 10, 2021. The plaintiff alleged violations of the Illinois Biometric Information Privacy Act concerning the use of biometric identifiers (thumbprints) for employee timekeeping. The parties reached a settlement in principle in February 2022, with Jet's Pizza agreeing to pay $9,500, including all associated costs.
Bankruptcy History
Jet's Pizza has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Jet's Pizza franchisees must meet several conditions. They must not be in default of their Franchise Agreement, notify Jet's Pizza in writing of their desire to renew at least six months before the initial term ends, and resolve or release all claims against Jet's Pizza. Franchisees must also sign a new Franchise Agreement, which may have different terms, and pay a renewal fee. Additionally, their restaurant must not be among the lowest 10% in gross sales or acquired inventory, they must be on good terms with Jet's Pizza (including a good working relationship and no litigation), and they must renovate their restaurant to meet current brand standards at the time of renewal.
Training & Support Program
Franchisor Assistance
Jet's Pizza provides franchisees with a comprehensive support system designed to assist with both pre-opening and ongoing operations. Before opening, Jet's Pizza helps with site selection criteria, provides specifications for leasehold improvements, fixtures, equipment, and layouts, and offers a list of approved suppliers. Franchisees' blueprints for construction or remodeling must be approved, and the completed restaurant will be inspected for compliance. Jet's Pizza specifies mandatory menu items and provides preparation instructions. Initial training is provided to two restaurant managers at an affiliate location in Michigan, covering all aspects of restaurant operation, with the cost included in the initial franchise fee (excluding apparel and personal expenses). For ongoing support, Jet's Pizza provides a representative for approximately three days (eight hours per day) around the grand opening. They may offer additional support and consultation through visits, phone, mail, or electronic means, and replacement manager training is available for a fee. Franchisees are required to attend mandatory meetings, seminars, webinars, or training programs, for which a fee may be charged, in addition to the franchisee covering their own travel and lodging costs. Jet's Pizza also manages advertising programs, requiring franchisees to meet minimum monthly spending on local advertising and contributions to regional advertising funds, plus a General Advertising Fee (up to 10% of acquired inventory) for system-wide marketing. All advertising materials must be approved by Jet's Pizza. On the technology front, franchisees are required to purchase, lease, and maintain a specified Technology System, including a POS system and online ordering services, and must comply with PCI Data Security Standards. Franchisees must purchase support contracts and may be required to update or replace their POS system every three years or software more frequently. A Technology Fee of up to 2.0% of acquired inventory may be implemented to fund technological advancements, and Jet's Pizza reserves the right to access and own all data generated by the franchisee's Technology System.
Initial Training Hours
300
Training Location
one of our affiliate locations in Michigan
Ongoing Support
Jet's Pizza provides a representative to assist franchisees at their restaurant for approximately eight hours per day for three days around the grand opening. Jet's Pizza may also provide ongoing support and consultation through personal visits, telephone, mail, computer, or other communication methods. If a trained manager leaves, Jet's Pizza will train a replacement for a fee. Franchisees are required to attend mandatory meetings, seminars, webinars, or training programs, and may be charged a fee for attendance, in addition to personal travel and lodging costs. Jet's Pizza requires franchisees to spend a minimum monthly amount on local advertising and contributions to any regional advertising fund, and also pay a General Advertising Fee (up to 10% of Acquired Inventory). All advertising materials must receive prior written approval from Jet's Pizza. Jet's Pizza also requires franchisees to maintain their Technology System, purchase support contracts (ranging from $1,500 to $4,500 per year), and upgrade/replace POS systems as frequently as every three years, and update software/cloud services more frequently as directed. A Technology Fee of up to 2.0% of Acquired Inventory may be instituted to fund technology expenditures.
Franchise Requirements
Ideal Candidate Profile
Jet's Pizza requires that each franchise location has at least one owner who personally supervises the business. This owner-operator must have successfully completed the Jet's Pizza training program and possess the necessary skills to properly fulfill the demands and responsibilities outlined in the Franchise Agreement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
Protected
Territory Size Requirements
Jet's Pizza designates a territory for each franchise, which is generally a one and one-half (1½) mile radius from the approved location. However, for locations within New York City or Chicago, the territory radius is reduced to one-quarter (¼) of a mile. While the territory is not exclusive regarding customer origin or non-traditional restaurant operations by Jet's Pizza, the franchisor commits not to establish or grant a franchise to others to operate a traditional Jet's Pizza restaurant within this defined radius.
Staffing Notes
Jet's Pizza requires each location to have at least one owner who personally supervises the franchised business, serving as a manager. This owner-operator must have successfully completed the training program and possess the necessary skills for the role. Additionally, two persons must be trained and available at all times at each location. Franchisees are solely responsible for all employment decisions, including recruiting, hiring, firing, scheduling, and payroll, and must ensure their employees do not violate franchisor policies regarding electronic communication or brand use.