Risk Score
Pending analysis
Investment Range
$200,100 - $424,050
Franchise Fee
$21,250
Total US Locations
82
Business Summary
Pizza Guys Franchises, Inc. grants franchises for takeout and delivery-only pizza stores operating under the "Pizza Guys" trade name. These stores offer a limited menu of foods, beverages, and other merchandise for off-premise consumption, following the company's specific decorations, equipment, policies, and procedures. Additionally, Pizza Guys offers franchisees the option to incorporate virtual kitchen models, named Calzone.life and Pizza Piatta, into their existing Pizza Guys franchise locations.
Corporate History
Pizza Guys Franchises, Inc. was incorporated in California on April 7, 1995, and began franchising pizza stores under the "Pizza Guys" name in April 1995. The company has always focused on this single line of business. While Pizza Guys Franchises, Inc. itself does not operate any stores, its affiliate, RSM, Inc., which was formed in January 1995 by the same principals, has owned and operated Pizza Guys stores in the Sacramento, California area since 1995. Pizza Guys also offers virtual kitchen models called Calzone.life and Pizza Piatta as add-ons to its franchises.
Financial Overview
Investment Range
$200,100 - $424,050
Franchise Fee (Low)
$21,250
Franchise Fee (High)
$25,000
Royalty %
5%
Marketing %
4%
Equipment Costs (Low)
$142,200
Equipment Costs (High)
$356,550
Working Capital
$10,000
Audited Financials
No
Offers Financing
No
Financial Health Notes
Pizza Guys' financial statements are prepared without an audit. Prospective franchisees are advised that no certified public accountant has audited these figures or expressed an opinion regarding their content or form.
Financing Details
Pizza Guys Franchises, Inc. does not offer any direct or indirect financing options to its franchisees. Additionally, Pizza Guys Franchises, Inc. does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
82
Franchised Units
77
Corporate Units
5
Avg Square Footage
1,250
Franchising Since
1995
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pizza Guys Franchises, Inc. has no litigation to report in Item 3 of its FDD.
Bankruptcy History
Pizza Guys Franchises, Inc. has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Pizza Guys franchisees must provide timely written notice, pay a Renewal/Extension Fee, and, if required by Pizza Guys, remodel their store to current brand standards. Franchisees will also need to sign a new Franchise Agreement and other related documents, which may include different terms and conditions. If Pizza Guys determines the store is in an unsafe location, franchisees may be required to relocate within their Exclusive Area at their own expense.
Training & Support Program
Franchisor Assistance
Pizza Guys provides several forms of assistance to its franchisees. Before a store opens, Pizza Guys helps with approving the store location and offers general plans for design, decor, equipment layout, and signage, though franchisees are responsible for specific engineering plans. They also provide a list of approved food and beverage inventory, initial training, and the Store Operations Manual. For the grand opening, Pizza Guys plans the advertising and requires franchisees to expend a minimum amount during the first six months. Ongoing support includes updates to the Store Operations Manual, consultation on daily operations, and approved formats for store promotions. While there is no national advertising fund, Pizza Guys plans the initial advertising, and franchisees may be required to join local advertising cooperatives if established. For multi-unit developers, Pizza Guys grants development rights, reviews and approves potential sites, and provides the same training and assistance as for single-unit franchisees.
Training Location
Sacramento, CA
Ongoing Support
Pizza Guys Franchises, Inc. provides ongoing support to its franchisees after store opening. This includes providing revisions to the Store Operations Manual and being available for consultation regarding store operations. Pizza Guys or an affiliate also manages franchisees' social media accounts, website hosting, and provides email hosting for a monthly fee. Additionally, Pizza Guys may offer optional or mandatory additional training courses or refresher courses, for which franchisees are responsible for associated travel and lodging expenses.
Franchise Requirements
Ideal Candidate Profile
Pizza Guys Franchises, Inc. seeks franchisees who will live in the local area of their store and personally manage and devote their full-time efforts to its day-to-day operations. Ideal candidates must maintain complete ownership of their franchise's equity and profits throughout the agreement term and are prohibited from having undisclosed partnerships or profit-sharing agreements.
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
exclusive
Territory Size Requirements
Pizza Guys franchisees receive an exclusive territory, which is typically defined as a two-mile radius around their store location. However, Pizza Guys Franchises, Inc. reserves the right to establish other franchised or company-owned pizza stores within this two-mile radius if there are natural or artificial impediments to travel, such as freeways or rivers.
Staffing Notes
Pizza Guys franchisees are responsible for employing enough trained personnel to operate their store efficiently. They are solely responsible for all employee-related payments, including wages, workers' compensation insurance, and payroll taxes. Franchisees must ensure all employees wear prescribed uniforms or clothing, maintain a neat and clean appearance, and provide competent and courteous customer service.