Pieology Franchising Information & Startup Cost
Pieology is a restaurant franchise that specializes in pizza, chicken, salad, beverage and take-outs among other product offerings.
The Pieology franchise was founded in 2010 and began to franchise two years later in 2012. Today, this Canadian franchisor is interested in further international expansion. Prospective franchisees can grab this opportunity to become part of something big.
Why You Should Consider This Franchise Opportunity
There are several reasons to invest in Pieology. According to the franchisor, you stand the opportunity of growing your wealth steadily using its trusted and rising brand. Pieology has also proven to be a high performing franchise with a steady demand for its products and services in new markets.
Plus, franchisees are supported through its creative and result-oriented marketing efforts.
Pieology’s fresh and innovative menu offerings have increasingly drawn the attention of customers making it one of their favorite brands. This franchisor has established strong and proven operations and support for its chain of restaurants both locally and internationally.
What more? You stand to benefit from its exclusive development territory both domestic and abroad. These and many more places it among the most profitable food franchise opportunities to invest in.
Prospective franchisees interested in owning a Pieology franchise will need to qualify for its financial requirements.
This is one of the most important requirements that must be met. Here, we will make our best attempt to provide as much information as necessary to assist you have a better understanding of the cost details.
The Initial Franchise Fee
The initial franchise fee starts at $25,000. This payment is due upon signing the franchise agreement. However, if you or your affiliate had earlier on signed a voluntary contract (such as the Development Rights Agreement), a portion of the fee paid under the voluntary contract is applied towards paying the franchise fee.
It is also important to state that the franchise fee once paid is non-refundable.
An extension fee of $3,500 applies per month. After signing the franchise agreement with the franchisor, the franchisee is given a timeline (including a deadline) within which to commence business operations. However, challenges might arise which might require an extension of this deadline.
For this to be possible, a written notice must be sent to the franchisor at least 15 days before the expiration of the opening deadline. The extension fee must be paid for each month or period within the extension period.
Development Rights Agreement
Development rights agreement fee of $10,000 applies to each Pieology restaurant unit you agree to develop. The development fee is paid in a lump sum upon signing the agreement.
For instance, if you wish to develop 6 restaurant units, you’ll need to pay the franchisor $10,000 multiplied by 6 which equals $60,000.
Initial Training Fee
An initial training fee ranging from $5,000 to $15,000 is paid to the franchisor upon signing the franchise agreement. This is followed by the Pieology sending training team to the new restaurant. Franchisees will have to reimburse the franchisor for lodging expenses when it exceeds the $200 mark.
The same applies to round trip fare over $500.
A royalty fee of 5% must be paid to the franchisor. This is a percentage of gross weekly sales and is due for payment every Tuesday. Gross sales will derive from all transactions and accruing revenue from operating the restaurant.
However, gross sales won’t include all forms of taxes added to the sales price.
Marketing Fund Contribution
The marketing fund contribution is paid weekly (Tuesday of each week) and consists of 2% of your restaurant’s weekly gross sales. This is the maximum amount the franchise requires you to spend on cooperative contributions and approved local marketing.
Additional Training Or Assistance
Additional training may be required when trainers sent by the franchisor sees the need for such. Under such circumstances, the franchisee will have to foot the cost of additional training. This training is offered at the franchisor’s headquarters or at other franchise locations it deems fit.
Cost To Correct Deficiencies
Pieology notifies a franchisee of site deficiencies in addition to other deficiencies relating to operating assets, and restaurant. Failure to address or correct such deficiency will attract an additional administrative fee charge of 15%.
If a franchisee seeks to transfer control of their franchise, the approval of the franchisor will need to be sought. It’s only after Pieology’s approval that a fee of $1,000 is paid for the non-control transfer.
There are several other fee requirements which we won’t be able to exhaust here. These include a successor franchise fee above $6,500 or 25% of the then-current initial franchise fee, an audit expense fee estimated at $500 to $5,000, late payment interest & administrative fee, and a management fee of 3% of gross sales including out-of-pocket expenses.
Cost and attorney fees, indemnification, and insurance fees vary based on multiple factors. Details on these and more are provided in the franchise disclosure document.
Pieology has a franchise term of 10 years. During this time, you get to enjoy your partnership and explore ways to build a thriving business. Thankfully, all the help you need to succeed is provided by the franchisor.
At the end of the term, franchisees get to renew their agreement for another 10 years.
Starting Your Application
Pieology has a franchise inquiry form that you have to fill and submit to begin your application process. A representative contacts you using the contact details supplied in the inquiry form. Questions are asked by the franchisor in addition to the provision of a more comprehensive and detailed application procedure.
Based on your qualifications for this opportunity, you are provided with the franchise disclosure document to move forward.
There you go! The information contained here has been focused on providing prospective franchisees the needed information to enable them to take the first step. If you are passionate about this franchise, then, by all means, you should grab the opportunity while it lasts.
Also, leverage the expertise of the franchisor to grow your business.