About Manhattan Pizza Franchise
Manhattan Pizza is a pizza restaurant franchise that has been franchising since 2013, backed by Manhattan Pizza Company, LLC.
The brand offers hand tossed, New York style pizza alongside a menu of subs, wings, calzones, and salads.
Manhattan Pizza restaurants serve dine in, carryout, and delivery customers in a casual, family friendly setting.
Manhattan Pizza Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,900 | One-time payment upon signing |
| Royalty Fee | 5.5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales when the Brand Fund is implemented | National brand fund |
| Total Investment Range | $404,200 – $760,900 | Includes build-out, inventory, working capital |
The investment range of $404K–$761K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Sales) and marketing fee (1% of Gross Sales when the Brand Fund is implemented) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,900 | $49,900 |
| Construction and leasehold improvements (Note 1) | $180,000 | $380,000 |
| Real Estate Deposit and Rent (first three months) (Note 2) | $5,000 | $15,000 |
| Furnishings | $20,000 | $40,000 |
| Fixtures | $18,000 | $30,000 |
| Signage | $10,000 | $20,000 |
| Equipment | $80,000 | $150,000 |
| Inventory (Note 3) | $5,000 | $5,000 |
| Utility deposits and fees | $1,500 | $2,000 |
| Business Licenses | $1,000 | $3,000 |
| Grand Opening event and marketing (Note 8) | $15,000 | $25,000 |
| Additional Funds—(first three months) (Note 4) | $10,000 | $20,000 |
| Insurance (Note 5) | $3,800 | $5,500 |
| Architect Fees | $5,000 | $12,000 |
| Legal & Accounting | $0 | $3,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Technology Fee | $200 per month |
| Audit Fee | Actual Cost of Audit Fees plus late charges and interest at 1.5% per month |
| Local Advertising Payment | The difference between the amount you spent on local advertising and your required local advertising expenditure (1% of your Gross Sales each month) |
| Local Advertising Cooperative | Amount established by members of the Cooperative |
| Default Fee | $500 per occurrence |
| Additional Initial Training Fee if more than the standard two participants | $200 per attendee per day. Also, you must pay all travel, lodging, meals, and other expenses we incur if we conduct training away from our headquarters. |
| Social Media Fee | $200 per month |
| Continuing assistance | $200 per day, plus all travel, lodging, meals, and other expenses we incur |
| Costs and attorneys’ fees | Will vary under circumstances |
| Interest | 1.5% of the delinquent amount or the highest rate permitted by law, whichever is less. |
| Late Payment Fee | $100 |
| Dishonored Payment Fee | $100 |
| Insurance | Our cost of premiums, plus an administrative fee equal to 20% of the cost of the premiums. |
| Professional Fees | All reasonable costs incurred by us with respect to your proposed transfer |
| Supplier or Product Approval Fee | Reasonable costs incurred by us with respect to evaluating a supplier or product for which you request our approval, which will typically be between $200 and $1,000. |
| Follow-up Inspection Fee (when Franchisee has failed to correct issues, thereby requiring a third inspection | The follow up inspection fee in effect at the time a follow-up inspection is required (currently $500.00) |
| Indemnification | Will vary under circumstances |
| Management Fee | $200 per day that we manage your Franchised Business, plus our direct expenses incurred on your behalf |
| Securities Offering Fee (Multi-Unit Franchises Only) | $5,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | typically three weeks |
| Classroom Training | 20 |
| On-the-Job Training | 94 |
| Training Location | Northern Virginia, or other designated location |
| Additional Training | Manhattan Pizza will provide periodic training programs regarding its latest products, techniques, methods, or processes. A fee of up to $200 per person, per day, may be charged for these programs, with franchisees responsible for travel, lodging, meals, and personal expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area |
| Exclusive Territory | Yes |
| Territory Size | Dependent on geographic location of the Franchised Business and population density, defined by street borders or U.S. Census Bureau data. |
| Description | Franchisee receives a Protected Area where the franchisor will not establish or license another Manhattan Pizza Business during the initial franchise term, provided the franchisee is not in default. The size and boundaries of this Protected Area are determined by factors such as geographic location, population density, and street borders. The franchisor retains all other rights within the Protected Area, including using other trademarks, offering products through alternative channels, and acquiring similar businesses without re-branding them under the Marks within the Protected Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 1 additional term of 10 years |
| Renewal Fee | $10,000 or twenty percent (20%) of the then-current initial franchise fee, whichever is greater |
| Renewal Conditions | Franchisee must provide written notice 90-180 days prior to term end, sign the then-current standard franchise agreement (which may have different terms including a smaller Protected Area and higher fees), be in full compliance with all obligations (including monetary payments), not have committed two or more breaches in the last 12 months, remodel the business, and pay the successor franchise fee. |
| Transfer Fee | $10,000 or twenty percent (20%) of the then-current initial franchise fee, whichever is greater |
| Transfer Conditions | Franchisor approval is required. Conditions include franchisee being in full compliance and current on all payments, franchisor declining its right of first refusal, transferee completing initial training and being approved as a new franchisee, transferee executing a new or assuming the existing franchise agreement (with personal guarantees), payment of the transfer fee, upgrading/remodeling assets to current standards, and executing a general release of claims against the franchisor and its affiliates. |
| Termination for Cause | The franchisor can terminate the agreement immediately without a cure period for reasons such as abandonment, bankruptcy, felony conviction or conduct adversely affecting the brand, unauthorized assignment, failure to comply with material laws, repeated defaults, understating gross sales, material misrepresentations, failure to allow audits/inspections, violation of restrictive covenants, interference with relationships, sale of unapproved products/services, termination of lease, intellectual property misuse, or anti-terrorism law violations. For other material breaches, a 10-day or 30-day cure period may apply depending on the nature of the default. |
| Non-Compete Period | one (1) year after the termination or expiration of the Agreement |
| Non-Compete Details | During the term, neither franchisee nor its owners/managers may directly or indirectly own, invest in, partner with, direct, serve as an officer/director/employee/consultant/agent for any Competitive Business anywhere. After termination/expiration, for one year, they may not engage in such activities within twenty (20) miles of the Protected Area or any other Manhattan Pizza Business then existing. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Manhattan Pizza Business must always be under the direct, day-to-day, full-time supervision of the franchisee or an approved manager. The franchisee or manager must complete the Initial Training Program and exert best efforts in operation. For multi-unit franchisees, a Director of Operations must be designated for day-to-day operations of all units in specified geographic areas. Legal entities must have all directors, members, partners, and officers, and any individual with an ownership interest, sign a guarantee agreement and be bound by confidentiality and non-competition provisions. |
| Required Suppliers | Franchisee must purchase all required décor, inventory, goods, equipment, supplies, forms, products, services, and advertising materials from the franchisor or its approved/designated suppliers and distributors, per specifications and standards. Construction must also be consistent with franchisor standards, using appropriately licensed contractors. |
| Supply Restrictions | Franchisee is prohibited from using any product, service, or supplier not authorized by the franchisor. Purchasing from non-approved suppliers without prior written approval constitutes a material breach of the Franchise Agreement. The franchisor reserves the right to be the only approved supplier for inventory items, but is not currently the sole supplier for all inventory, fixtures, or equipment. |
| Franchisor Revenue from Suppliers | During the 2021 fiscal year, Manhattan Pizza Company, LLC (an affiliate) collected $201,387.28 in rebates from suppliers based on purchases by franchisees and affiliate-owned stores. Total revenues in 2021 were $631,739.00. There are no caps or limitations on the maximum amount of payments the franchisor may receive from suppliers as a result of franchisee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not receive any consideration for placing financing with a lender, although we reserve the right to do so in the future. We do not guarantee your note, lease or obligation. |
Manhattan Pizza Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Manhattan Pizza Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Manhattan Pizza System Growth
Manhattan Pizza currently operates 14 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 0 | 11 |
| 2020 | 2 | 0 | 13 |
| 2021 | 2 | 1 | 14 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 16 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI, FL, NC
Franchisor Financials (Item 21)
Audited by Crowe Donahue PLLC for year ending December 31.
Manhattan Pizza Franchise — FAQ
Similar Food & Beverage Franchises
Interested in Manhattan Pizza?
Get free info on this franchise. We will send you a detailed FDD report by email.