About Pizza Schmizza Franchise
Pizza Schmizza is a franchise system offering gourmet New York-style pizza by the slice in a fun, irreverent restaurant environment.
Franchisees operate under one of three dining concepts: Pizza Schmizza (a modest 2,000-2,500 sq ft restaurant seating 40-60), Schmizza Pub & Grub (2,500-3,500 sq ft with full bar and multiple TVs, seating 45-85), or Schmizza Public House (4,000-6,000 sq ft with enhanced menu including hamburgers and tacos, 30-60 craft beers on tap, and private event rooms, seating 80-150).
Day-to-day operations involve preparing and selling high-quality pizza, pasta, calzones, submarine sandwiches, salads, exotic drinks, dip sticks, and related food and beverage products to the general public.
Pizza Schmizza Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $39,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Receipts of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Gross Receipts (Branding Fee); may increase to 4% for non-compliance | National brand fund |
| Total Investment Range | $203,500 – $591,500 | Includes build-out, inventory, working capital |
The investment range of $204K–$592K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Receipts) and marketing fee (3% of Gross Receipts (Branding Fee); may increase to 4% for non-compliance) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,000 | $39,000 |
| Franchise Coordination Fee | $0 | $10,000 |
| Grand Opening Advertising | $0 | $12,500 |
| Lease Acquisition | $2,000 | $20,000 |
| Licenses and Permits | $100 | $4,000 |
| Architectural and Blueprints | $0 | $7,500 |
| Leasehold Improvements | $50,000 | $215,000 |
| Equipment & Fixtures | $60,000 | $150,000 |
| Computers, Office Equipment, and Related Supplies | $15,900 | $26,000 |
| Telephone & Utility Installation and Deposits | $200 | $1,000 |
| Opening Inventory | $5,000 | $8,500 |
| Employees | $500 | $3,000 |
| Uniforms | $300 | $1,500 |
| Training | $500 | $5,000 |
| Signs | $4,500 | $10,000 |
| Insurance | $500 | $2,500 |
| Additional Funds (3 months) | $15,000 | $50,000 |
| Miscellaneous | $10,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $16,000 or 2% of gross proceeds from sale |
| Renewal Fee | None (late renewal fee of $250/month if renewal agreement not signed by deadline) |
| Audit Fee | Cost of audit plus interest on underpayment (if understatement of 2% or more) |
| Local Advertising | 3% of Gross Receipts (can increase to 4%) |
| Cooperative Advertising | Up to 4% of Gross Receipts |
| Late Fee for Reports/Payments | $50 per incident |
| Late Payments Interest | Up to 1.5% per month |
| Additional Training | $200/day or $900/week |
| Additional Manager Training | $900/week per individual |
| Lost Operations Manual | $500 |
| Cure Fee | $2,500 plus $100/day fine or $800/day service fee |
| Mystery Shopper Fee | $10-$100 per visit |
| Operation in Case of Default | $400/day plus expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Minimum 4 six-day weeks (24 days) plus 3-day test period plus 5-day new store opening |
| Classroom Training | 1 day academic training at corporate headquarters |
| On-the-Job Training | 29 days in-store training including test period, counter, prep/cook, and supervisory training |
| Training Location | Existing Schmizza store in the Portland, Oregon area and corporate headquarters in Salem, Oregon; plus 5 days at franchisee's store location |
| Additional Training | 9-14 days on-site support during first 1-2 months of operation at franchisor's expense; annual continuing education up to 4 days; manager training at $900/week |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchise is granted for a specific location only with no exclusive territory, no minimum radius, distance, population or other territorial designation. Franchisor reserves the right to sell products through alternative distribution channels including Internet. Multiple Franchise Purchase Addendum grants a non-exclusive Designated Territory for multi-unit developers. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Successive 10-year terms (negotiable from 5 to 20 years) |
| Renewal Fee | None (late renewal fee of $250/month if not signed by deadline) |
| Renewal Conditions | Must comply with all franchise agreement provisions; bring store into compliance with current standards; give timely notice of renewal (9-15 months before expiration); satisfy all monetary obligations; meet current training requirements; sign mutual release; sign then-current form of franchise agreement which may have materially different terms |
| Transfer Fee | Greater of $16,000 or 2% of gross proceeds from sale; reduced to $8,000 for management team/existing franchisee transfers; reduced to $500 for immediate family/affiliated entity transfers |
| Transfer Conditions | Transferee must meet franchisor qualifications, complete training, sign current franchise agreement; all monetary obligations must be satisfied; mutual general release required; franchisor has right of first refusal (30 days); store must be open and operating before transfer |
| Termination for Cause | Non-curable defaults include: failure to commence business or complete training; material misrepresentation; conviction of felony; unauthorized use of Operations Manual or trade secrets; abandonment for 5 consecutive business days; insolvency/bankruptcy; health/safety violations. Curable defaults: failure to make payments (5 business days to cure); failure to comply with agreement (30 days to cure) |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | Cannot directly or indirectly own or operate a business selling prepared food products similar to System within 10-mile radius of Franchised Store, within 10-mile radius of any other System business, or within reasonable distance of any location where franchisor could establish a territory or company store during the 2-year period |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee or owner of 50.1% or more of franchisee entity, any general partner, or full-time manager must devote full-time energy and best efforts to management and operation. Each store must be under direct on-premises supervision of franchisee or trained manager at all times. Absentee ownership without express written consent is grounds for termination. |
| Required Suppliers | Trade Secret Food Products (proprietary pizza dough mix, pizza sauce spice mix, calzone spice mix) must be purchased from designated suppliers; Pepsi-Cola Company is designated soft drink supplier; initial signage must be from specified vendors |
| Supply Restrictions | 85-95% of initial and ongoing purchases must be from specified or approved suppliers; all menu items, food products, containers, packaging, uniforms, and supplies must conform to franchisor specifications |
| Franchisor Revenue from Suppliers | $23,273 in rebates in FY2023 (1.41% of total revenue of $1,648,103); 0% of total revenues from products purchased directly from franchisor |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing and does not guarantee notes, leases, or obligations |
Pizza Schmizza Franchise Earnings — Item 19
Pizza Schmizza 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 Schmizza 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 Schmizza System Growth
Pizza Schmizza currently operates 17 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 |
|---|---|---|---|
| 2021 | 1 | 2 | 21 |
| 2022 | 1 | 6 | 16 |
| 2023 | 4 | 3 | 17 |
Transfers: 1 | Closures: 3
State Registrations
Registered in 21 states: CA, CT, FL, HI, IL, IN, KY, MD, MI, MN, NE, NY, ND, OR, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Pizza Schmizza Franchise — FAQ
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