Risk Score
Pending analysis
Investment Range
$280,500 - $739,500
Franchise Fee
$20,000
Total US Locations
1
Business Summary
Velly Pizza operates restaurants specializing in Indian-style and traditional pizzas, pasta dishes, and chicken wings, along with other related food and beverage items. Velly Pizza restaurants use high-quality ingredients and follow specific recipes and procedures. The locations are designed with a unique, brightly colored ambiance and are typically 1,200 to 1,600 square feet, seating 25 to 55 guests. Each restaurant usually employs 2 to 4 full and part-time staff members and operates daily from 11:00 am to 10:00 pm.
Corporate History
Velly Pizza Franchise, Inc. was formed as a California corporation on January 10, 2024, with the goal of franchising and managing businesses under the VELLY PIZZA trademark. The company began offering franchises on May 9, 2024. The brand was founded by Iqbal Singh Gill and Sharanjit Singh Gill. Sharanjit Singh Gill previously established "The Original Chicago Pizza & Curry" brand in 1994, which had multiple locations in Northern California. Velly Pizza's affiliate, Gill Pizza, Inc., formed in 2020, currently owns and operates several "The Original Chicago Pizza & Curry" locations, with one Sacramento location transitioning to the VELLY PIZZA brand, serving as a model for new franchisees.
Financial Overview
Investment Range
$280,500 - $739,500
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$25,000
Royalty %
4%
Marketing %
2%
Equipment Costs (Low)
$138,000
Equipment Costs (High)
$482,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Velly Pizza is a very new company, formed in January 2024, and had not yet begun selling franchise locations as of March 31, 2024. The company reported a net loss and accumulated deficit of $800 during its initial operating period from January 10 to March 31, 2024. However, it had $70,000 in paid-in capital and $76,548 in cash and cash equivalents. The auditors provided an unqualified opinion on the financial statements, indicating they present fairly in all material respects. There are no specific concerns about Velly Pizza's ability to continue operations mentioned in the audit report beyond the general statement of auditor responsibility to evaluate such conditions. Given its startup nature, Velly Pizza's financial position reflects its early development stage.
Financing Details
Velly Pizza does not offer any direct or indirect financing to its franchisees. Velly Pizza also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
1,400
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Velly Pizza has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Velly Pizza has no bankruptcy history to report for the franchisor or its key management.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Velly Pizza franchisees must provide written notice between 6 and 12 months before their current term ends. They must have no material defaults during the last 12 months, fully comply with all franchise and other agreements, and satisfy all financial obligations to Velly Pizza and its approved suppliers. Franchisees are also required to complete additional training, make any requested changes to operating personnel, modernize their restaurant and equipment to current Velly Pizza standards, pay a renewal fee equal to 25% of the then-current Initial Franchise Fee, and sign Velly Pizza's then-current Franchise Agreement and a general release of claims.
Training & Support Program
Franchisor Assistance
Velly Pizza provides franchisees with extensive assistance both before and after their restaurant opens. Prior to opening, Velly Pizza helps with site selection and reviews proposed leases and design plans. They offer initial training for the franchisee's designated operator and general manager, conduct an inspection before opening, and assist with planning the grand opening marketing program. After opening, Velly Pizza offers additional training programs, develops and administers advertising and promotion campaigns, manages the System Marketing Fund, provides operational advice through periodic calls or visits, and includes information about the franchisee's restaurant on its website, along with social media policies.
Initial Training Hours
160
Training Location
Company Restaurants in California
Ongoing Support
After opening, Velly Pizza franchisees receive ongoing support including access to additional training programs, development and administration of advertising and promotion campaigns, and management of the System Marketing Fund. Velly Pizza provides operational advice through periodic calls or visits from its representatives. They also list the franchisee's restaurant on their website and provide social media policies and guidelines. Franchisees and their personnel may be required to attend additional training courses for new products or procedures, typically one to two days in duration, and conducted at one of Velly Pizza's company restaurants, usually not more than once a year.
Franchise Requirements
Ideal Candidate Profile
Velly Pizza is looking for franchisees who are approved both operationally and financially. If the franchisee is a legal entity, one of the owners must be approved as a full-time representative and personally guarantee the franchise agreement. The designated manager, who directly supervises and participates in the daily operations, must be an experienced food service operator with supervisory experience. This designated manager is also required to own at least a 10% equity interest in a legal entity franchisee. Neither the franchisee nor their designated manager may have an interest in competing businesses.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
protected
Staff Count
3
Territory Size Requirements
Velly Pizza offers a protected area where it generally will not establish another Velly Pizza restaurant within three miles of the franchisee's front door. However, this protection does not apply to "Non-Traditional Venue" restaurants, and if the franchisee's restaurant is in a "high density area," the specific territorial rights will be mutually agreed upon.
Staffing Notes
Velly Pizza restaurants typically operate with approximately 2 to 4 full and part-time employees. Each restaurant must have an on-site manager who is approved and certified by Velly Pizza present during all operating hours. The franchisee is solely responsible for all employment decisions, including hiring, firing, training, and setting wages. All staff members are expected to be well-trained, efficient, personable, and adhere to a dress code. Employees are trained in all operational requirements taught during the initial training program and are responsible for maintaining good customer relations and handling complaints.