If you are looking towards opening a Canada’s Pizza Pizza Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Canada’s Pizza Pizza was founded in 1968 and they began franchising in 1975, about 46 years ago. The company has its corporate head office at 500 Kipling Ave. Toronto, ON M8Z 5E5. Canada’s Pizza Pizza 73 is a fast-spreading pizza restaurant franchise based in Edmonton, Alberta, Canada, featuring a menu of delectable pizzas, but for wallet-friendly prices.
Pizza 73 offers a broad menu of more than 20 different pizza toppings, three types of crusts and three kinds of sauces, plus wings, chicken bites, wedgies, salads and other sides. Even with the fast growth of the Pizza 73 brand, the company’s motto remains: “Better Meal. Better deal.” Pizza 73 also prides itself on its cutting-edge delivery technology, assuring a fast, hot, delectable meal every time.
Canada’s Pizza first opened its doors in 1985 and grew quickly right out of the gate, opening 17 new stores in its first two years of franchising, and growing to more than 70 Pizza 73 locations today, all across Western Canada. Pizza 73 corporate headquarters are located on the 17th floor of Canadian Western Bank Place in Edmonton.
Canada’s Pizza Pizza has announced a new partnership with True North Sports & Entertainment Limited. As part of the agreement, Pizza Pizza becomes a sponsor of the Winnipeg Jets and will have onsite concessions at the MTS Centre where the Jets are playing home games during the 2011/2012 NHL season.
Please note that the estimated investment required to open a Pizza Pizza Franchise is between $275,000 to $350,000. There is an initial franchise fee of $30,000 which grants you the license to run a business under the Pizza Pizza name. Here are areas where you are expected to spend money and the costs associated with it;
Financial Investment Required to Open a Pizza Pizza Franchise
1. Initial Investment Range: $275,000 to $350,000
2. Franchise Fee: $30,000
3. Royalty Fee
6 percent of Gross Sales and the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Canada’s Pizza Pizza and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Canada’s Pizza Pizza if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Canada’s Pizza Pizza if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Canada’s Pizza Pizza is required to defend your unsuccessful claim against it.
- Veteran Incentives: This is open for negotiation with the company
- Term of Agreement and Renewal: The length of the initial franchise term is 5 years. If requirements are met, franchisees can renew for one additional term of 5 years.
- Financial Assistance: Canada’s Pizza Pizza has relationships with third-party sources that offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
In Summary,
- Initial Investment: $275,000-$350,000
- Initial Franchise Fee: $30,000
- Royalty Fee: 6%
- Advertising Fee: N/A
- Renewal Fee: $7500