Monical's Pizza Restaurant Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$487,550 - $1,133,400
Franchise Fee
$25,000
Min Cash Required
$100,000
Total US Locations
58
Business Summary
Monical's Pizza operates dine-in restaurants that specialize in pizza and also offer an extensive menu of salads, sandwiches, and pasta. The franchised restaurants typically occupy spaces ranging from 3,000 to 4,000 square feet, usually located in in-line strip malls or freestanding buildings. Monical's Pizza also offers area development agreements for franchisees who wish to open multiple restaurants.
Corporate History
Monical's Pizza has a history in the pizza restaurant business dating back to 1959 through its predecessors. The company began offering franchises of Monical's restaurants in 1965. Monical Pizza Corporation itself was incorporated in Illinois on April 27, 1982, to continue offering these franchises. As of the FDD's issuance date, no predecessors exist, having either dissolved or merged with Monical Pizza Corporation.
Financial Overview
Investment Range
$487,550 - $1,133,400
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$45,000
Minimum Cash Required
$100,000
Royalty %
4%
Equipment Costs (Low)
$300,000
Equipment Costs (High)
$765,000
Working Capital
$150,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Monical's Pizza discloses a significant potential uninsured aggregate payment of approximately $31,550,952 if all stock repurchase payments were due. However, the Board of Directors has contingency plans and believes that financing on acceptable terms for stock repurchase would be available to Monical's Pizza.
Financing Details
Monical's Pizza does not offer any direct or indirect financing options to its franchisees, nor does it guarantee any leases or other obligations. Franchisees are responsible for arranging their own funding.
Performance Metrics
Total US Locations
58
Franchised Units
26
Corporate Units
32
Avg Square Footage
3,500
Franchising Since
1965
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Monical's Pizza has no litigation to disclose in its FDD, meaning there are no administrative, criminal, or material civil actions, or any pending litigation to report.
Bankruptcy History
Monical's Pizza has no bankruptcy information to disclose in its FDD.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Monical's Pizza franchisees must meet several conditions. They must have substantially complied with all material provisions of their existing franchise agreement, made necessary capital expenditures to keep their restaurant consistent with the current system standards, and satisfied all monetary obligations owed to Monical's Pizza. Franchisees must not be in default of any agreement with Monical's Pizza and must give written notice of their intent to renew between nine and twelve months before their current term ends. They will be required to sign Monical's Pizza's then-current franchise agreement, which may have different terms and conditions, and meet current qualifications and training requirements. Finally, franchisees must sign a general release of all claims against Monical's Pizza.
Training & Support Program
Franchisor Assistance
Before a Monical's Pizza restaurant opens, Monical's Pizza assists franchisees by designating the area for their restaurant, providing site selection criteria, and approving their chosen site. Monical's Pizza also designates the non-exclusive operating area, reviews and approves the lease or purchase agreement for the site, and provides specifications for the restaurant's build-out, equipment, and improvements. Initial training is provided to the designated manager, along with on-site assistance and guidance for the grand opening. Franchisees also receive an electronic copy of the Monical's Pizza Confidential Operations Manual on loan. After opening, Monical's Pizza offers general guidance and advice by phone, email, and newsletters, and may conduct periodic visits to provide assistance and outline suggested improvements. Ongoing training and operations assistance are available as needed. Monical's Pizza also reviews and approves local, grand opening, and cooperative advertising materials, and notifies franchisees of any updates to the Operations Manual.
Initial Training Hours
316
Training Location
Monical's Pizza headquarters in Bradley, Illinois, or another designated location
Ongoing Support
After opening, Monical's Pizza provides ongoing support and guidance to franchisees through periodic advice via telephone, email, facsimile, and newsletters. Monical's Pizza may also make discretionary periodic visits to franchised restaurants to offer assistance and guidance on operations and management. Monical's Pizza makes additional operations assistance and ongoing training programs available as deemed necessary. Monical's Pizza also approves local, grand opening, and cooperative advertising materials and notifies franchisees of any modifications to the Confidential Operations Manual.
Franchise Requirements
Ideal Candidate Profile
Monical's Pizza seeks individuals to become area developers who possess business management experience and sufficient capital. These developers would open and operate a predetermined number of Monical's Pizza restaurants within a specified development territory.
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
Non-Exclusive
Territory Size Requirements
Monical's Pizza franchisees will receive an 'area of primary responsibility' that is defined and depicted in a map attached to the Franchise Agreement. Monical's Pizza determines the boundaries of this area based on various factors, including population, median population age, proximity to competitors and other Monical's Pizza restaurants, median income characteristics, and natural, physical, or political boundaries. For area developers, the development territory size varies based on the number of Monical's Pizza restaurants intended for development, as well as the population density and demographics of the area.
Staffing Notes
Monical's Pizza requires the franchised restaurant to always be under the direct, full-time, day-to-day supervision of a designated manager, who must devote at least 40 hours per week, excluding vacation and sick leave. This manager may be the franchisee themselves or an individual they select. Monical's Pizza provides training for various staff positions, including Dough Makers, Pizza Makers, Preparation Personnel, Oven Personnel, Server Staff, Host, Cashiers, and Delivery Personnel. The Confidential Operations Manual also includes job descriptions for roles such as Owner/Operator, Regional Trainer, Manager, Assistant Manager, Shift Supervisor, Certified Trainer, Fronter, Host, Server, Dough Maker, Pizza Maker, Oven Person, Busser, Dishwasher, and Delivery Driver. Franchisees are responsible for training their own employees and other management personnel.