Pizza Pit Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$224,280 - $443,640
Franchise Fee
$25,000
Total US Locations
9
Business Summary
Pizza Pit operates food service units offering pizza and various other food items to the public. The business functions under a uniform system using the "Pizza Pit" brand marks. Franchisees can choose to operate one of four unit types: Regional Mall Units, Freestanding Units, Merged Business Units (sharing premises with a compatible business), or Strip Center Units, each featuring dining, carry-out, and/or delivery services with a menu of pizzas, sandwiches, chicken products, and appetizers.
Corporate History
SB Acquisition, LLC, operating as Pizza Pit, was organized as a Wisconsin Limited Liability Company on January 5, 2000. Shortly after its formation, on January 28, 2000, Pizza Pit acquired certain assets, including contract rights and trademarks, from former entities Pizza Pit, Ltd. (PPL) and Pizza Pit Investment Enterprises, Inc. (PPIE), though Pizza Pit shares no common ownership or affiliation with these predecessors. Pizza Pit began offering franchises on May 1, 2000. In May 2012, Pizza Pit further expanded by acquiring existing franchise agreements from Extreme Franchise Corporation and obtaining a license to use trademarks and intellectual property from James E. Meyer, Pizza Extreme Corporation, and/or Extreme Franchise Corporation.
Financial Overview
Investment Range
$224,280 - $443,640
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$25,000
Royalty %
4.25%
Marketing %
1%
Equipment Costs (Low)
$83,500
Equipment Costs (High)
$252,400
Working Capital
$46,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pizza Pit's audited financial statements for fiscal years 2021, 2022, and 2023 received an unqualified opinion from the independent auditor, indicating that the financial statements are presented fairly in all material respects. No concerns about Pizza Pit's ability to continue operations were noted.
Financing Details
Pizza Pit does not offer any direct or indirect financing to its franchisees. Additionally, Pizza Pit does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
9
Franchised Units
9
Corporate Units
0
Franchising Since
2000
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pizza Pit has no litigation to report in this disclosure document.
Bankruptcy History
Pizza Pit and its key personnel have no bankruptcy history to report in this disclosure document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Pizza Pit franchise for an additional 10-year term, franchisees must have faithfully fulfilled all their obligations during the initial term, sign a new franchise agreement with the then-current terms and conditions (without an additional franchise fee), and provide written notice of their intent to renew between six to twelve months before the current term expires. Additionally, the franchisee or their designated manager must attend and successfully complete a retraining program prescribed by Pizza Pit, at the franchisee's expense. Both the franchisee and Pizza Pit must also agree to release any and all claims against each other and their affiliates and employees at the time of renewal.
Training & Support Program
Franchisor Assistance
Before opening, Pizza Pit offers assistance with market analysis to help franchisees find a suitable site, provides 4 to 6 weeks of management training, and furnishes specifications for unit layout, equipment, fixtures, furniture, signs, and pizza ingredients. Pizza Pit may also, at its discretion and for a fee, offer additional pre-opening services like oven and cooler setup, installation assistance, and hanging artwork or menu boards. Upon opening, Pizza Pit provides at least one representative for the first week to help facilitate operations and train personnel, with franchisees covering travel and living expenses. For ongoing support, Pizza Pit may offer refresher training programs or seminars, and periodically make available promotional materials, bulletins on new developments, products, techniques, equipment, and additional employee training, for which a service charge and related expenses will apply for employee training.
Initial Training Hours
258
Training Location
Corporate headquarters and company-owned locations in Madison, Wisconsin.
Ongoing Support
During operation, Pizza Pit may offer and/or require franchisees or their managers to attend refresher training programs or seminars. These programs, at Pizza Pit's discretion, are often conducted at the franchisee's unit at no charge, though franchisees must cover travel and living expenses if conducted elsewhere. Pizza Pit also periodically makes available promotional materials, bulletins on new sales, marketing developments, products, techniques, and equipment. Additional employee training is offered on an as-needed basis, for which Pizza Pit charges a service fee (typically $25-$40 per hour per employee) plus travel, room, and board expenses.
Franchise Requirements
Ideal Candidate Profile
Pizza Pit seeks individuals who have considerable experience in the franchised business, or persons/corporations already operating a pizza business who wish to affiliate with the brand. An owner with at least a 25% ownership interest in the franchise must commit to dedicating their full time, energy, and effort to the management and operation of the Pizza Pit Unit.
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
limited
Staffing Notes
Pizza Pit requires one owner, holding at least a 25% ownership interest, to dedicate full-time effort to the management and operation of the Pizza Pit Unit. Franchisees are also expected to hire a manager and other employees for whom Pizza Pit will provide initial training assistance during the first two weeks of operation. Pizza Pit reserves the right to require franchisees to have their managers sign confidentiality agreements.