Risk Score
Pending analysis
Investment Range
$376,000 - $639,000
Franchise Fee
$25,000
Min Cash Required
$10,000
Total US Locations
2
Business Summary
Pizzawala's Franchising, Inc. offers franchises for fast-casual restaurants specializing in fusion pizzas, primarily Indian-inspired, made with locally sourced ingredients. These restaurants operate with a focus on carry-out services and superior customer service. Pizzawala's restaurants feature a distinctive format, unique service style, proprietary recipes, and specific food presentation processes.
Corporate History
Pizzawala's Franchising, Inc. was organized as a Michigan corporation on November 1, 2019, and began offering its own franchises in July 2020. Before this, its affiliate, Desi Pizza Curry on Crust, Inc., has owned and operated a Pizzawala's restaurant similar to the franchised ones since 2012, helping to develop the system. Another affiliate, Nihi Franchising, Inc., has also offered franchises for 'Neehee's' restaurants, specializing in Indian vegetarian cuisine, since January 2013.
Financial Overview
Investment Range
$376,000 - $639,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$25,000
Minimum Cash Required
$10,000
Royalty %
5%
Marketing %
5%
Equipment Costs (Low)
$300,000
Equipment Costs (High)
$500,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements of Pizzawala's Franchising, Inc. include a risk disclosure indicating that the franchisor's financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees. The company has very low stockholders' equity ($6,675 as of December 31, 2023) and has reported net losses for 2023 ($1,816), 2022 ($21,620), and 2021 ($5,493).
Financing Details
Pizzawala's Franchising, Inc. does not offer any direct or indirect financing to its franchisees. Additionally, Pizzawala's Franchising, Inc. does not guarantee any notes, leases, or other obligations that franchisees might incur.
Performance Metrics
Total US Locations
2
Franchised Units
2
Corporate Units
0
Avg Square Footage
1,500
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pizzawala's Franchising, Inc. has no litigation to report in Item 3 of its Franchise Disclosure Document. This means Pizzawala's Franchising, Inc. has not been involved in any legal cases that are required to be disclosed to prospective franchisees.
Bankruptcy History
Pizzawala's Franchising, Inc. has no bankruptcy history to report. No officers, directors, or affiliates of Pizzawala's Franchising, Inc. have filed for bankruptcy that is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the franchise agreement, Pizzawala's franchisees must meet several conditions. They must not be in default and must have operated their restaurant in compliance with the Operations Manuals and the franchise agreement. Franchisees also need to satisfy all of Pizzawala's current financial requirements, which involves submitting certified financial statements. They must have the right to maintain their approved location (or an approved substitute) for the renewal term, and complete any necessary capital expenditures, including remodeling and renovating the location to meet current system standards. All monetary obligations owed to Pizzawala's Franchising, Inc. must be satisfied, and timely written notice of intent to renew must be provided. Finally, franchisees must sign the then-current franchise agreement, which may have different terms, including potentially higher Royalty and Marketing Fees, pay a $10,000 renewal fee, comply with current training and certification requirements, and sign a general release.
Training & Support Program
Franchisor Assistance
Pizzawala's Franchising, Inc. provides comprehensive support to its franchisees. Before opening, Pizzawala's assists with providing sample construction plans, accepting the restaurant's location, reviewing leases, lending Operations Manuals, reviewing architectural drawings, providing lists of approved suppliers, and reviewing promotional materials. Pizzawala's also provides management training for the franchisee or their designate and one other manager, covering approximately 56 hours of classroom and 3 weeks of on-the-job training. After opening, ongoing support includes approximately 9 days of on-site staff training, maintaining the Marketing Fund, periodic visits for consultation and inspections, operating a System Performance Review Program, organizing franchisee meetings, providing updated approved supplier lists, and offering refresher training programs.
Initial Training Hours
176
Training Location
Canton, Michigan
Ongoing Support
Pizzawala's Franchising, Inc. provides ongoing support to its franchisees after the restaurant opens. This includes maintaining the Marketing Fund and assisting with local advertising placement, though all promotional materials require franchisor approval. Pizzawala's conducts periodic visits for consultations, inspections, and guidance, providing written reports on suggested improvements or defaults. The franchisor may also organize a System Performance Review Program and implement Franchisee meetings, which franchisees are required to attend at their own expense. Additionally, Pizzawala's periodically updates and provides Approved Suppliers Lists and Approved Supplies Lists, and may offer refresher training programs to franchisees, managers, and employees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
Pizzawala's Franchising, Inc. defines its Designated Area typically ranging from a minimum of zero miles (limited to the restaurant property) to a maximum of three miles around the restaurant. In some cases, due to physical boundaries like rivers or multi-lane highways, the area generally will not exceed three miles. The size of the Designated Area is determined by Pizzawala's Franchising, Inc. based on factors like population density, demographics, traffic patterns, existing locations, competition, proximity to shopping centers, and market feasibility. However, the territory is not exclusive, as certain locations like enclosed malls, hospitals, airports, parks, casinos, and sports arenas are excluded and may host other Pizzawala's restaurants or competitive brands.
Staffing Notes
Pizzawala's Franchising, Inc. requires a Franchisee Designate, who must own at least a 10% beneficial interest in the restaurant, to directly supervise the restaurant on-premises and devote their full time and attention. Franchisees must also maintain a fully-trained and certified management team of at least two managers, including the Franchisee Designate. The total number of staff needed for opening is determined by Pizzawala's Franchising, Inc., and at least 90% of this staff must begin training two days before the restaurant opens to the public. Pizzawala's Franchising, Inc. provides approximately nine days of on-site staff training at the franchisee's restaurant, starting two days before opening.