Risk Score
Pending analysis
Investment Range
$930,847 - $1,955,672
Franchise Fee
$19,451
Business Summary
PizzaExpress US Limited offers individual unit franchises for the development and operation of PizzaExpress restaurants, which feature high-quality pizza, salads, side dishes, and other related food and beverage items. The restaurants focus on providing a full-service dining experience for customers.
Corporate History
PizzaExpress US Limited, the franchisor, was formed as a UK limited company on February 16, 2024, and began offering unit franchises for PizzaExpress Restaurants in August 2024. Although PizzaExpress US Limited has not directly operated restaurants, the PizzaExpress brand has a long history, with the first PizzaExpress restaurant opening in 1965. Related entities have operated PizzaExpress Restaurants in 10 countries as of December 31, 2023. Additionally, a related entity has operated 'Milano' restaurants in Ireland since 1995, and another operates a 'Gourmet Pizza Company' restaurant in the United Kingdom, both of which are similar to the PizzaExpress concept.
Financial Overview
Investment Range
$930,847 - $1,955,672
Franchise Fee (Low)
$19,451
Franchise Fee (High)
$19,451
Royalty %
4%
Marketing %
1%
Equipment Costs (Low)
$251,062
Equipment Costs (High)
$486,702
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
PizzaExpress US Limited itself had a net asset position of £nil and a net current asset position of £nil as of February 16, 2024. The directors believe the company can meet its obligations due to financial support from its ultimate parent company, Wheel Topco Limited. The broader Wheel Topco Limited group was in a net asset position of £140,190,000 as of December 31, 2023, and has a £30,000,000 revolving credit facility, with £26,000,000 available as of December 31, 2023, and no ongoing financial covenants while the facility remains undrawn. The group's financial projections indicate sufficient liquidity for at least the next 12 months, even in a downside scenario without drawing on the credit facility.
Financing Details
PizzaExpress US Limited does not offer any direct or indirect financing to its franchisees. Additionally, PizzaExpress US Limited does not guarantee any notes, leases, or obligations of the franchisee.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
2,125
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
PizzaExpress US Limited has no litigation cases to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
PizzaExpress (Restaurants) Limited, an affiliate of PizzaExpress US Limited, initiated a Company Voluntary Arrangement (CVA) in 2020 due to the worldwide pandemic forcing restaurant closures and restrictions. The CVA, a process for repaying debts with creditor agreement, was filed with the High Court of Justice in England and Wales. It aimed to reduce rents, write off unpaid rents from the initial 6 months of the pandemic, and restructure the business for future profitability. The CVA was passed on September 4, 2020, and was in place for three years. In September 2022, supervisors concluded that the affiliate's financial standing no longer required their supervision. The three-year term has now passed, and PizzaExpress (Restaurants) Limited is no longer under the CVA.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their PizzaExpress franchise agreement, franchisees must give written notice between 180 and 270 days before their current agreement ends. They must have complied with all material terms of their current franchise agreement and other agreements with PizzaExpress US Limited or its affiliates, including paying all monetary obligations and adhering to operating and quality standards. Franchisees must also show they have the right to keep their restaurant premises during the renewal term, or secure a new approved location, and commit to remodeling, modernizing, and redecorating the restaurant to meet PizzaExpress's current standards for new restaurants. Additionally, an approved Principal Owner and the Operating Principal must successfully complete any new or refresher training programs. Franchisees are responsible for associated travel, living, and compensation costs. A renewal fee, covering PizzaExpress's legal and administrative costs, is required, and franchisees must sign PizzaExpress's then-current standard franchise agreement, which may have materially different terms. Finally, the franchisee and each direct and indirect owner must sign a general release of all claims against PizzaExpress US Limited and its affiliates.
Training & Support Program
Franchisor Assistance
PizzaExpress US Limited provides various forms of support to its franchisees. Before a restaurant opens, PizzaExpress US Limited offers consulting on site evaluation and selection, provides prototype drawings and specifications for restaurant design, and conducts an initial training program for the Operating Principal and key management personnel. This initial training includes three weeks at a PizzaExpress training hub. PizzaExpress US Limited also provides on-site training at the franchisee's restaurant to train a certified trainer, and gives access to a confidential Manual and selected computer systems. During the restaurant's operation, PizzaExpress US Limited offers advisory services on operations, products, marketing, and administrative procedures. It periodically updates the Manual and operates a Brand Development Fund for general brand promotion. PizzaExpress US Limited also provides assistance with local advertising plans and materials, and mandates participation in advertising and promotional programs. Franchisees must also participate in gift card, loyalty, and mystery shopper programs. For computer systems, PizzaExpress US Limited designates the required point-of-sale and reporting system, including proprietary software, and charges a monthly Technology Fee for maintenance and upgrades. Franchisees are responsible for site selection within a designated area and must obtain written approval for their chosen location. PizzaExpress US Limited offers to provide additional training for subsequent restaurants upon request, for a fee.
Initial Training Hours
64
Training Location
PizzaExpress training hub and franchisee's restaurant
Ongoing Support
After opening, PizzaExpress US Limited provides ongoing support through advisory services related to restaurant operations, products, marketing, sales promotions, and general administrative procedures. PizzaExpress US Limited periodically updates its confidential Manual with new materials and operates a Brand Development Fund for general brand promotion and system development. Franchisees and key management personnel may be required to attend supplemental and refresher training programs for up to 5 days each calendar year, as well as any annual conferences designated by PizzaExpress US Limited. Franchisees are responsible for their own travel, lodging, and living expenses for these trainings and conferences. Additionally, PizzaExpress US Limited monitors and audits the performance of the franchisee's designated 'Master Trainer' who is responsible for staff training at the restaurant. If a Master Trainer is unavailable or deemed unfit, PizzaExpress US Limited reserves the right to conduct the necessary training for a fee.
Franchise Requirements
Ideal Candidate Profile
PizzaExpress US Limited is looking for franchisees who can designate an approved Operating Principal to manage the day-to-day restaurant operations on a full-time basis, without significant conflicting business activities. PizzaExpress US Limited recommends that this Operating Principal have food service experience.
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
Territory Size Requirements
PizzaExpress US Limited grants franchisees a Protected Territory surrounding their restaurant location, delineated by a mile-radius or other boundaries determined at PizzaExpress US Limited's discretion. The size of the territory is based on factors like population density, zip codes, counties, median household income, and economic development. For restaurants in urban cities, the minimum protected territory may be as small as a 1/8th-mile radius. For suburban areas, it may extend up to a two-mile radius around the restaurant.
Staffing Notes
PizzaExpress US Limited requires franchisees to hire all restaurant employees and take exclusive responsibility for their employment terms, scheduling, benefits, compensation, and disciplinary actions. Franchisees must implement a training program for restaurant staff in compliance with PizzaExpress US Limited's requirements and maintain a sufficient number of trained employees to operate the restaurant according to standards and customer demand. All restaurant employees must hold necessary licenses and certifications. The restaurant must always be under the direct, on-site supervision of an approved Operating Principal or a certified manager who has completed PizzaExpress US Limited's initial training program. Additionally, PizzaExpress US Limited trains one of the franchisee's key personnel as a 'Master Trainer' who is responsible for all staff training at the restaurant. Franchisees must always have an approved Master Trainer in place, or find a replacement within 60 days if the current one leaves or becomes unfit. Depending on the restaurant's size, more than one Master Trainer may be required. PizzaExpress US Limited reserves the right to monitor and audit Master Trainer performance and conduct staff training if a Master Trainer is unavailable or unfit, charging the franchisee a fee for such services.