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Round Table Pizza Franchise Costs $156K – $2.3M (+ 2024 Profits)

Round Table Pizza, renowned for its commitment to quality and authenticity, has established itself as “Pizza Royalty™” over the past 60 years. Founded in 1959 by Bill Larson in Menlo Park, California, Round Table Pizza was born out of Larson’s vision to create a gathering place where people could share quality pizza made with gold-standard ingredients and time-honored recipes.

Round Table Pizza began its franchising journey in 1962, a few years after its establishment. The company has grown significantly since then, with its headquarters in Beverly Hills, California. As part of the FAT Brands family, Round Table Pizza has maintained its commitment to quality and authenticity, earning the reputation of “Pizza Royalty” over the years​. 

Round Table Pizza celebrates community, family, and the joy of sharing. The brand is part of the FAT Brands family, which includes a variety of other well-known food and beverage outlets. Round Table Pizza’s commitment to using superior ingredients, along with many of Larson’s original recipes, pays homage to its founder’s vision while also embracing a refreshed brand look to reflect the exceptional quality of its pizzas.

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Initial investment

Type Of ExpenditureAmount (Dine-In Model)
Initial Franchise Fee$25,000
Travel And Living Expenses While Training$1,500 – $3,500
Real Estate And Improvements$175,000 – $600,000
Furniture, Fixture & Equipment$210,000 – $295,000
Point Of Sale Systems and Related Technology$35,100 – $59,000
Opening Inventory/ Smallwares$12,000 – $15,000
Interior Décor Package/ Exterior Signage$15,000 – $35,000
Uniforms$1,000 – $2,000
Insurance$4,500 – $7,000
Additional Funds – 3 Months$25,000 – $50,000
Total$504,100 – $1,091,500

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The initial franchise fee for a Round Table Pizza franchise is $25,000. This fee is payable upon signing the Franchise Agreement.

Royalty Fee

Franchisees are required to pay a royalty fee, which is the greater of 4% of Net Sales or $750 per month.

Marketing Fee

A marketing fee of 4% of Net Sales is also required from franchisees. This fee contributes to the Marketing Fund.

Transfer Fee

For transferring a franchise, the current transfer fee is $12,500. This fee is payable at or before the transfer of the franchise.

Renewal Fee

Upon renewal of a franchise, a renewal fee is applicable. The current renewal fee is $2,500, payable upon renewal of the franchise agreement.

Additional/Remedial Training

If additional or remedial training is required, a fee of $300 per employee or agent per day is charged. This is payable before the training begins.

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Franchise Pros and cons

Pros

  • Multiple unit formats: The brand offers flexible franchise formats for franchisees to choose from. Franchisees can operate dine-in, carryout, and pick-up formats. Also, franchisees can open restaurants in any potential area, such as supermarkets, convenience stores, campuses, airports, and gas stations.
  • Exclusive territory protection: The franchisor grants its franchisees exclusive rights to operate their business within a geographical location approved by the franchisor. The franchisor does not authorize other franchises or itself to operate competing restaurants in the protected area.
  • Comprehensive training: The brand’s training program consists of about 180 hours of on-the-job and 24 hours of classroom training to help franchisees establish and manage their restaurants. It trains franchisees on how to make the products, provide customer service, and run restaurant operations, and in addition, helps them with their grand opening.
  • Franchise support: Round Table Pizza offers franchisees solid ongoing support and business coaching. The brand guides franchisees on the best franchise concept, the most convenient business location, setting goals for business growth, and best business practices.
  • Quality menu: The brand is known for its quality and diverse menu. It utilizes freshly sourced ingredients and rolls its dough from scratch each day in its stores. They have also introduced over 30 new products over the last 10 years to keep up with changing market trends, which gives franchisees a competitive advantage.
  • Marketing support: The brand uses excellent marketing tools to reach a wide range of new and existing markets. Franchisees can leverage the brand’s popularity, targeted advertising, and promotional campaigns to create awareness and market their local stores.

Cons

  • No financing: Round Table Pizza does not directly or indirectly provide the franchisees with financing for development or ongoing costs. Also, it does not guarantee any lease, obligation, or note on behalf of its franchisees.
  • No absentee ownership: The Round Table Pizza franchise does not offer franchisees a passive investment opportunity. Franchisees are supposed to participate fully in the daily operations of their restaurants.
  • Not a mobile unit: The franchise can’t be run as a mobile unit or from home. A franchisee must have a fixed office facility.

How to apply

1. Initial Inquiry and Information Gathering

  • Express interest in the franchise by contacting Round Table Pizza through their official franchise inquiry channels.
  • Review preliminary information provided by Round Table Pizza about the franchise opportunity.

2. Submit a Franchise Application

  • Complete and submit a detailed franchise application form provided by Round Table Pizza.
  • Include financial information to demonstrate financial qualifications, such as minimum liquidity and net worth requirements.

3. Franchise Disclosure Document (FDD) Review

  • Receive and carefully review the Franchise Disclosure Document (FDD) provided by Round Table Pizza.
  • Understand your rights, obligations, the franchisor’s obligations, fees, and other critical aspects of the franchise relationship.

4. Financial Verification and Approval

  • Undergo a financial verification process to confirm financial stability and ability to meet investment requirements.
  • Await approval from Round Table Pizza’s franchise review team based on your application and financial verification.

5. Site Selection and Approval

  • Identify a suitable location for the franchise, adhering to Round Table Pizza’s site selection criteria and guidelines.
  • Submit the site for approval by Round Table Pizza’s real estate and development team.

6. Training Program Participation

  • Attend and complete the mandatory training program provided by Round Table Pizza, which may include online orientation, on-the-job training, and additional pre-opening training at your store.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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