About Pizzawala's Restaurant Franchise
Pizzawala's is a fast-casual restaurant franchise specializing in freshly-made fusion pizzas, predominantly Indian-inspired, using locally sourced ingredients with superior customer service.
Franchisees operate counter-service restaurants featuring carry-out Indian-inspired pizza along with other food and beverage menu items.
The restaurants serve the general public with a wide variety of menu items prepared according to proprietary recipes and specified standards, targeting customers seeking tasty and healthy meals in a fast-casual atmosphere.
Pizzawala's Restaurant Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 | One-time payment upon signing |
| Royalty Fee | 5% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 5% of Net Sales (Marketing Fee) plus minimum 1% of Net Sales for Local Advertising | National brand fund |
| Total Investment Range | $301,000 – $489,000 | Includes build-out, inventory, working capital |
The investment range of $301K–$489K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Net Sales) and marketing fee (5% of Net Sales (Marketing Fee) plus minimum 1% of Net Sales for Local Advertising) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $20,000 |
| Training Expenses | $3,500 | $15,000 |
| Three Months Rent or Lease | $0 | $10,000 |
| Building Improvements | $130,000 | $200,000 |
| Furniture, Fixtures, Equipment, Audio Visual and Small Wares | $100,000 | $150,000 |
| Point of Sale System (Electronic Cash Register) | $3,000 | $10,000 |
| Insurance | $1,000 | $3,000 |
| Opening Inventory | $8,000 | $8,000 |
| Signage | $5,000 | $10,000 |
| Professional Fees | $15,000 | $30,000 |
| Uniforms | $500 | $1,000 |
| Grand Opening Advertising | $5,000 | $10,000 |
| System Performance Review Program | $0 | $2,000 |
| Additional Funds (3 Months) | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 75% of then-current Initial Franchise Fee if sold to new franchisee; 40% if sold to existing franchisee |
| Renewal Fee | $10,000 |
| Audit Fee | Cost of audit and investigation plus Royalty and Marketing Fees due on understatement plus interest, if audit shows understatement of Net Sales by 1% or more or underpayment of Royalty of 3% or more |
| Local Advertising | Minimum of 1% of Net Sales |
| Additional Training | $100 to $1,000 per person per day, plus expenses |
| Additional Assistance | $100 to $1,000 per person per day, plus expenses |
| Remodeling and Renovation | Not more than 2% of Net Sales cumulative over previous five-year period |
| Proprietary Merchandise and/or Food Products | $5,000 |
| Alternate Product/Supplier Approval | Up to $5,000 |
| Mystery Shopping/Quality Assurance Program | Up to $2,000 initial investment and up to $250 per month |
| Interest | 18% per annum or highest maximum rate allowed by law |
| Web-based Marketing Program | Currently $0 |
| Liquidated Damages | Greater of 2 years of Royalty and Marketing Fee payments or $117,000 |
| Collection Costs, Expenses and Attorney Fees | Actual costs and expenses |
| Indemnification | Costs and expenses incurred by franchisor |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 7 days classroom (56 hours) plus approximately 4 weeks on-the-job training for management; approximately 9 days for staff training |
| Classroom Training | Approximately 56 hours |
| On-the-Job Training | Approximately 4 weeks (management); approximately 9 days (staff) |
| Training Location | Canton, Michigan and franchisee's Restaurant location |
| Additional Training | Additional training available at $100 to $1,000 per person per day plus expenses. Refresher courses may be required. After third Restaurant, franchisee must designate a Certified Training Restaurant. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected within Designated Area but not exclusive |
| Exclusive Territory | No |
| Territory Size | Minimum area of zero (limited to Restaurant property) to a maximum area of three miles |
| Description | Designated Area typically ranges from zero to three miles. Enclosed malls, institutions, airports, parks, casinos, and sports arenas are excluded from the Designated Area. Franchisor and affiliates retain rights to operate outside the Designated Area and through alternative channels of distribution within the Designated Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One renewal term of 10 years |
| Renewal Fee | $10,000 |
| Renewal Conditions | Must not be in default; satisfy current financial requirements; have right to maintain possession of location; have made required capital expenditures; satisfied all monetary obligations; given timely written notice; sign current Franchise Agreement; comply with current training and certification requirements; sign general release |
| Transfer Fee | 75% of then-current Initial Franchise Fee for new franchisee; 40% for existing franchisee in the System |
| Transfer Conditions | No default; franchisor satisfied with transferee's character, business experience and credit; all debts paid; general release executed; transferee completes training; transferee signs then-current Franchise Agreement; transfer fee paid; transferee agrees to repair and renovate to current standards |
| Termination for Cause | Non-curable defaults include failure to commence construction or open Restaurant, failure to complete training, breach of representations, unapproved transfer, bankruptcy, conviction of felony, substance abuse, or multiple defaults. Curable defaults with 15-day cure period include failure to make payments, failure to meet standards, understatement of Royalty by 5% or more, and others. |
| Non-Compete Period | 5 years |
| Non-Compete Details | For 5 years after termination or expiration, franchisee, owners and their families, officers, directors, executives, managers and professional staff are prohibited from owning or working for a Competing Business within 25 miles of the franchise location designated area or within 25 miles of any other Pizzawala's Restaurant designated area, or soliciting customers or business associates. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisor does not require that the franchisee personally supervise the Restaurant. The Restaurant must be directly supervised on premises by a Franchisee Designate who has been approved by the franchisor, successfully completed the training program, and beneficially owns at least 10% of the Restaurant. |
| Required Suppliers | Franchisees must purchase proprietary products from franchisor or designated suppliers. Nihi Distributing, Inc. (affiliate) is the designated supplier for dry ingredients, paper products, spice packs, ice cream, logoed merchandise, and uniforms. Franchisees must purchase all equipment, uniforms, proprietary apparel, small wares, paper products, grocery items, non-alcoholic beverages, fixtures, POS systems and furniture from approved suppliers. |
| Supply Restrictions | Approximately 90% of overall purchases and leases in establishing and operating the Restaurant must come from approved or designated suppliers. Franchisees may request approval of alternative suppliers by submitting samples and paying up to $5,000 for testing and evaluation. |
| Franchisor Revenue from Suppliers | Nihi Distributing, Inc. derived $36,325 in revenue from required purchases by franchisees in fiscal year ending December 31, 2022. Franchisor reserves the right to receive rebates from suppliers in the future. |
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. |
Pizzawala's Restaurant Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Pizzawala's Restaurant 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.
Pizzawala's Restaurant System Growth
Pizzawala's Restaurant currently operates 1 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 |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by MHC Advisors, P.C. for year ending December 31.
Pizzawala's Restaurant Franchise — FAQ
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