Risk Score
Pending analysis
Investment Range
$2,101,500 - $4,909,500
Franchise Fee
$30,000
Min Cash Required
$20,000
Total US Locations
218
Business Summary
Pizza Ranch operates family restaurants specializing in pizza and chicken, along with related menu items. The restaurants offer an all-you-can-eat buffet that includes pizza, chicken, salad, and other approved items, as well as options for special ordering from the menu. Pizza Ranch locations feature public dining areas, community rooms for special occasions, and provide 'to-go' service, catering, and delivery. New Pizza Ranch restaurants are typically required to include a FunZone Arcade, which is a dedicated space within the restaurant offering card-operated arcade games and amusement devices.
Corporate History
Pizza Ranch, Inc. is a family-owned Iowa corporation that was officially incorporated on October 15, 1984. However, its owners began operating restaurants in 1981, with the first restaurant opening in Hull, Iowa, under the trademark 'The Pizza Ranch®'. The company began offering franchises for this restaurant concept in 1984. In 2007, the trademark was shortened to 'Pizza Ranch'. Pizza Ranch has been developing its brand around offering good food and opportunities in small-town America, and is now expanding into larger towns and cities.
Financial Overview
Investment Range
$2,101,500 - $4,909,500
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$20,000
Royalty %
3.5%
Marketing %
2.25%
Equipment Costs (Low)
$1,931,000
Equipment Costs (High)
$3,780,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pizza Ranch, Inc. demonstrates a healthy financial position, as evidenced by its audited financial statements. The company maintains strong current assets significantly exceeding its current liabilities across 2022, 2023, and 2024, indicating robust working capital. Pizza Ranch, Inc. has shown consistent growth in retained earnings, increasing from $16.5 million in 2022 to $22.3 million in 2024, and has reported positive and growing net income over these years, reaching $7.0 million in 2024. The independent auditor has issued an unqualified opinion, with no concerns raised about the company's ability to continue as a going concern.
Financing Details
Pizza Ranch, Inc. does not offer any direct or indirect financing options to its franchisees. This means that Pizza Ranch does not provide loans or guarantee any notes, leases, or other obligations for its franchisees. Franchisees are responsible for securing their own financing through third-party lenders.
Performance Metrics
Total US Locations
218
Franchised Units
212
Corporate Units
6
Avg Square Footage
7,800
Franchising Since
1984
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pizza Ranch, Inc. has no litigation history that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Pizza Ranch, Inc. has not been involved in any material litigation, including actions alleging franchise law violations, fraud, breach of contract, or other claims, for which disclosure is mandatory.
Bankruptcy History
Pizza Ranch, Inc. has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document. This means neither Pizza Ranch, Inc., its predecessors, affiliates, nor any of its current or former executive officers have filed for bankruptcy.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Pizza Ranch franchisees must meet several conditions: they must not be in material default of any agreement terms and must not have exceeded 10 material defaults over the entire agreement term, or more than 3 material defaults in the last two years. Franchisees are also required to attend and satisfactorily complete any refresher training programs designated by Pizza Ranch, and they must remodel, repair, replace, or relocate their restaurant to meet current brand specifications. Furthermore, franchisees must sign a general release of claims against Pizza Ranch and execute a new franchise agreement with the then-current terms, and pay a renewal fee of $2,500.
Training & Support Program
Franchisor Assistance
Pizza Ranch, Inc. provides extensive assistance to its franchisees, both before and after their restaurant opens. Prior to opening, Pizza Ranch assists with evaluating potential restaurant sites, provides standard floor plans and specifications for layouts, equipment, and finishes, and reviews and approves all final construction documents. Pizza Ranch also offers an initial training program for the management team, comprising 5 individuals (General Manager, Assistant General Manager, 2 Kitchen Managers, and a Guest Services Manager), which includes 7 days of team member training and 2 days of 'soft openings.' Franchisees receive access to the comprehensive operations Manuals, along with ongoing research and development services. For restaurants with a FunZone, Pizza Ranch provides standard floor plans and specifications for design. Post-opening, Pizza Ranch supplies 3+ training staff members for the first week and 2 for the second week to assist with team member training. The franchisor continuously updates its Manuals and provides ongoing research and development, including new methods of operation and quality control. Pizza Ranch conducts inspections of food quality, may establish and require participation in local or regional advertising cooperatives, sets and modifies a standard menu, and provides uniform designs. Franchisees also contribute to a Marketing and Production Fund for advertising materials and public relations, and may be offered additional training programs. Pizza Ranch permits franchisees to use its registered and unregistered trademarks.
Initial Training Hours
400
Training Location
Orange City, IA and Certified Training Restaurants or other designated locations
Ongoing Support
After opening, Pizza Ranch, Inc. provides franchisees with ongoing assistance, including supplying training staff for the first two weeks to support team member training. The franchisor continuously updates its operations Manuals and offers continuing research and development services, informing franchisees of improved operating methods and quality control. Pizza Ranch conducts inspections of the restaurant's food quality and overall operations. The franchisor may establish and require participation in local or regional advertising cooperatives, and it sets and modifies a standard menu. Pizza Ranch also provides uniform designs and offers access to local and regional print, radio, and TV advertisements. Franchisees contribute to a Marketing and Production Fund for sales development, advertising materials, and public relations. Additionally, Pizza Ranch may offer further training programs and refresher courses, some of which may be mandatory, typically for a fee.
Franchise Requirements
Ideal Candidate Profile
Pizza Ranch, Inc. seeks a Principal owner who holds an ownership interest in the franchise entity, actively oversees or remains involved in the general management and operations of the restaurant, and possesses authority to sign contracts. This Principal must either serve as the General Manager or be responsible for hiring and overseeing a qualified General Manager. The General Manager, in turn, is required to dedicate their full time and attention to the on-premises day-to-day management of the restaurant, meet Pizza Ranch's food service management experience requirements, and avoid significant conflicting business activities. Pizza Ranch recommends that General Managers have prior food service management experience. The overall profile points to a dedicated, hands-on, or highly supervisory owner capable of ensuring strong, full-time operational management.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Pizza Ranch, Inc. defines each franchise territory in Exhibit 2 of the Franchise Agreement using zip codes, recognized geographical or political boundaries (such as streets, rivers, city limits, or county lines), or a specific mile radius around the restaurant. The territory size is determined to provide a mutually agreeable number of prospective customers, based on population density and other characteristics of the area. While Pizza Ranch grants a protected territory where it or other franchisees will not operate another traditional Pizza Ranch restaurant, it retains the right to distribute its products through alternative channels of distribution, such as grocery stores, catering, or online sales, both within and outside the territory. Franchisees are also not restricted from seeking customers outside their territory, nor are other Pizza Ranch restaurants restricted from delivering to customers within a franchisee's territory, as long as delivery standards are met.
Staffing Notes
Pizza Ranch, Inc. requires a specific management team to operate the restaurant. This team must include a Principal owner who actively oversees the general management and operations, or serves as the General Manager. In addition, there must be at least one dedicated General Manager who works full-time on-premises, ideally with prior food service management experience, and two Kitchen Managers, and a Guest Services Manager. All five of these individuals are required to complete Pizza Ranch's initial management training program to the franchisor's satisfaction prior to the restaurant opening. The restaurant must always be under the direct, on-premises supervision of either the Licensee, Principal, or a trained manager or team member. For franchisees operating multiple restaurants, each location must have a manager who has been disclosed to Pizza Ranch, completed specified training, and preferably has at least one year of direct restaurant management experience. Pizza Ranch emphasizes that franchisees are solely responsible for all employment decisions, including hiring, scheduling, benefits, and training for their team members.