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How Much Does It Cost to Open Round Table Pizza Franchise?

Do you want to open a pizza shop business by buying Round Table Pizza franchise? If YES, here is how much it cost to open Round Table Pizza franchise successfully. If you are looking towards opening a Round Table 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.

Round Table Pizza was founded in 1959 and they began franchising in 1962, about 58 years ago. The current CEO is Chris Dull and they have their corporate head office at 5555 Glenridge Connector, #850 Atlanta, GA 30342, USA. Currently, the company operates 430 franchises in the United States and outside the country.

The franchisor is The Round Table Franchise Corporation. The franchisor offers franchises for the operation of retail restaurants selling pizza and related food items and beverages under the proprietary marks it designates. The franchisor currently offers franchises to independently owned businesses. They operate two different traditional restaurant models, namely Dine-In Model and Delivery Carry-Out (DCU) Model.

The franchisor also may (a) authorize franchisees to locate either of the restaurant models above from a captive venue of other non-traditional space, or (b) authorize franchisees to offer a more limited menu than would be typically available in connection with either restaurant model (to accommodate the practicalities of the footprint/layout of the location and/or limitations imposed by any occupancy agreement for that location), and the franchisor sometimes refers to such a location as a “non-traditional model.”

Here are areas where you are expected to spend money and the costs associated with it;

Financial Investment Required to Open a Round Table Pizza Franchise

  1. Initial Franchisee Fee: $25,000
  2. Travel and Living Expenses While Training: $1,000 to $2,250
  3. Real Estate and Improvements: $95,000 to $600,000
  4. Equipment: $145,000 to $295,000
  5. Point of Sale Equipment: $15,000 to $30,000
  6. Opening Inventory and Small Wares: $7,500 to $15,000
  7. Interior Décor Package and Exterior Signage: $8,500 to $35,000
  8. Uniforms: $1,000 to $2,000
  9. Insurance: $4,300 to $7,000
  10. Additional Funds – 3 months: $25,000 to $50,000
  11. Royalty Fee: Greater of (i) 4 percent of Net Sales generated by the restaurant over the prior reporting period, or (ii) $750 per month.
  12. Marketing Fee: 4 percent of Net Sales.
  13. Transfer Fee: The then – current transfer fee based on the kind of transfer at issue.
  14. Renewal Fee: The then – current renewal fee.
  15. Additional and Remedial Training: Currently, $300 per employee or agent for each full or partial day.
  16. Relocation Charge: The then – current relocation fee.
  17. Audit-Related Reimbursement: Cost of audit, plus travel and living expenses, plus interest on the amount of the under – payment at an annual rate of the lesser of 18 percent or the maximum interest rate permitted by law.
  18. Product, Service, Supplier, and Service Provider Review: The franchisor’s reasonable cost of inspecting the supplier, testing the proposed product, or evaluating the service provider or proposed service, including personnel and travel costs; this cost will not exceed $5,000.
  19. Late Fee: $25 per week.
  20. Interest: 18 percent per year (or maximum legal rate, if less).
  21. Inspection: The franchisor’s reasonable expenses incurred in inspecting the business, including travel and living expenses, wages, and other expenses for its employees including a $135 fee for first inspection and $250-$450 for additional ones.
  22. Insurance: Cost of the premium plus a reasonable fee for the franchisor’s services in procuring the insurance.
  23. Indemnification: The franchisor’s liabilities, fines, losses, damages, costs, and expenses (including reasonable attorneys’ fees).
  24. Costs of Compliance and Enforcement in Connection with the Franchise Agreement: The costs associated with (a) franchisees complying with, and/or (b) the franchisor enforcing its rights under, the Franchise Agreement or Development Agreement.
  25. Convention or Meeting Attendance: If the franchisor establishes and controls the administration of any convention or meeting for some or all of the restaurant owners, it reserves the right to charge a fee to help cover the costs associated with that convention or meeting.
  26. Remedial Expenses: The franchisor reasonable expenses incurred in correcting the franchisee’s operational deficiencies; this cost will not exceed $10,000 per deficiency.
  27. Step-In and Management Proceeds: (only in the event of the franchisee’s death or disability)

Please note that this fee Varies depending on the Gross Sales and resulting profit generated by the franchised restaurant over the period of time the franchisor’s representatives step-in and manage restaurant operations in the unfortunate event of the franchisee’s death or disability during the 90 or more day period following such event.

  1. Reimbursement of Taxes Other than: Income Tax and it is As determined by appropriate taxing authority, if any.
  2. Veteran Incentives: 25 percent off franchise fee
  3. Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the Effective Date, unless the franchisor agrees otherwise in a separate writing. Renewal is for the shorter of one additional 10 – year renewal term or the remaining term of the franchisee’s lease (including options), subject to the franchisee meeting the franchisor’s conditions to renew.
  4. Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of franchisees, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of franchisees.

In Summary,

  • Initial investments: $426,500 – $836,250
  • Net-worth Requirement: $500,000
  • Liquid Cash Requirement: $200,000
  • Ongoing Initial Franchise Fee: $25,000
  • Ongoing Royalty Fee: 4 percent
  • Ad Royalty Fee: 4 percent