About Pizza Inn Franchise
Pizza Inn is a pizza restaurant franchise offering three distinct restaurant concepts: Buffet Restaurants, Delco (delivery/carry-out) Restaurants, and Express Restaurants.
Franchisees develop, own, and operate Pizza Inn-branded restaurants featuring pizzas, salads, pasta, desserts, and other approved food items.
Buffet Restaurants offer ample seating, a salad bar, and a full pizza buffet with dine-in, carry-out, and delivery services.
Pizza Inn Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Gross Sales (currently 3% Brand Fund + 1% Local Marketing) | National brand fund |
| Total Investment Range | $37,000 – $790,500 | Includes build-out, inventory, working capital |
The investment range of $37K–$791K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (4% of Gross Sales (currently 3% Brand Fund + 1% Local Marketing)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $5,000 | $30,000 |
| Architectural Design Services | $0 | $15,000 |
| Leasehold Improvements | $3,400 | $337,500 |
| Fixtures, Equipment, Décor and Signage | $16,700 | $270,000 |
| Smallwares | $2,000 | $26,000 |
| Opening Inventory | $4,000 | $20,000 |
| Other Pre-Opening Expenses | $500 | $15,000 |
| Initial Training | $1,000 | $22,000 |
| Register or Point of Sale System | $0 | $25,000 |
| Additional Funds - 3 months | $5,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,500 - $7,500 depending on concept |
| Renewal Fee | 25% of then-current initial franchise fee |
| Audit Fee | Cost of audit or inspection |
| Late Payment Fee | $100 per invoice |
| Interest on late payments | Lower of 1.5% per month or highest applicable legal rate |
| Indemnification | Varies with circumstances |
| Products and supplies | Varies |
| Food Sample Testing and Inspection Fees | Cost of testing/inspection |
| Relocation of Restaurant | $500 plus costs |
| Securities offering fee | $1,500 |
| Insurance Placement Fee | Costs including premiums |
| Opening Deadline Extension Fee | $500 |
| Quality Assurance Audit | Costs and expenses of QA Audit |
| Lost Revenue Damages | Varies under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 4 weeks |
| Classroom Training | 43-46 hours (Buffet), 2-17 hours (Delco), 2-14 hours (Express) |
| On-the-Job Training | 168-190 hours (Buffet), 8-92 hours (Delco), 8-82 hours (Express) |
| Training Location | Regional Certified Training Restaurant |
| Additional Training | Additional training may be required if time between initial training and Restaurant opening exceeds 4 months. At least 2 certified managers must be on staff at all times. ServSafe certification required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically a 3-mile radius around the location |
| Description | Franchisees receive a Protected Area surrounding the Restaurant premises. The size and configuration is determined by Pizza Inn in its sole discretion based on demographics, market penetration, availability of sites, and growth trends. Pizza Inn retains the right to operate and license others within the Protected Area for Express-type or kiosk points of distribution at special use or non-public locations such as schools, colleges, malls, airports, convenience stores, and similar venues. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years (Buffet), 10 years (Delco), 5 years (Express) |
| Renewal Term | 10 years (Buffet), 5 years (Delco and Express) |
| Renewal Fee | 25% of then-current initial franchise fee |
| Renewal Conditions | Must be in compliance, provide written notice, sign then-current franchise agreement (terms may differ from original), pay renewal fee, remodel, comply with training requirements, and sign general release |
| Transfer Fee | $7,500 (Buffet), $5,500 (Delco), $2,500 (Express) |
| Transfer Conditions | 45 days prior written notice, financial qualification of transferee, execution of assignment agreement, training of transferee and manager, payment of all obligations, remodeling requirements, execution of general release, and two-year guaranty |
| Termination for Cause | May terminate upon default including remaining in default beyond applicable cure period under any agreement. Cure periods: 3 days for product/recipe/quality issues, 5 days for monetary defaults, 10 days for operations/financial reports, 30 days for most other defaults. Non-curable defaults include failure to open by deadline, insolvency, bankruptcy, felony conviction, unauthorized transfer, and repeated defaults. |
| Non-Compete Period | 2 years |
| Non-Compete Details | Prohibited from involvement in competing business within 3 miles of former Restaurant premises, within Protected Area, within 3 miles of Protected Area border, or within 3 miles of any other Pizza Inn Restaurant for 2 years following expiration, transfer, or termination |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Pizza Inn recommends but does not require that the franchisee or Controlling Principals personally supervise the Restaurant. If the franchisee is not directly involved in day-to-day operations, a manager who has satisfactorily completed initial and ongoing training programs must supervise the Restaurant. |
| Required Suppliers | Proprietary Products must be purchased from Pizza Inn, its affiliates, or designated third parties. Performance Food Group (PFG) serves as the primary distributor for virtually all food and paper products. Approved food ingredients must be purchased through Pizza Inn-approved distributors and suppliers. |
| Supply Restrictions | 95% to 100% of initial and ongoing purchases are restricted. All products must meet Pizza Inn specifications or be purchased from approved suppliers. Franchisees may request approval of alternative suppliers subject to inspection and testing. |
| Franchisor Revenue from Suppliers | In fiscal year ended June 27, 2021, Pizza Inn and affiliates received $3,575,263 (54.3% of total revenue) from sales to franchisees and $3,007,396 (45.7% of total revenue) in rebates and other consideration from designated vendors. Supplier rebates represented approximately 4.5% of retail sales. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither Pizza Inn nor any of its agents or affiliates offer direct or indirect financing to franchisees, guarantee any notes, leases or obligations, or have any practice or intent of selling, assigning or discounting to a third party any financing arrangements. |
Pizza Inn Franchise Earnings — Item 19
Pizza Inn does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Pizza Inn 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.
Pizza Inn System Growth
Pizza Inn currently operates 156 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 | 7 | 8 | 146 |
| 2020 | 3 | 11 | 138 |
| 2021 | 3 | 17 | 124 |
Transfers: 6 | Closures: 17
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Pizza Inn Franchise — FAQ
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