Straw Hat Pizza Franchise FDD, Profits & Costs (2025)
Straw Hat Pizza, established on July 10, 1959, in San Leandro, California, is a renowned pizza restaurant chain celebrated for its “Genuine California Pizza.” The company is headquartered in Brentwood, California, and began franchising in 1969.
The menu features a variety of pizzas with a distinctive layered, flaky crust, complemented by fresh toppings, light sauce, and a blend of six naturally aged cheeses. Over the years, the menu has expanded to include Hot Hat® sandwiches, chicken wings, and salads, catering to diverse customer preferences.
A key differentiator for Straw Hat Pizza is its commitment to quality ingredients and a family-friendly atmosphere. The dough is rolled fresh daily, and the sauce is made from fresh-packed tomatoes, never canned or reconstituted.
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Initial Investment
How much does it cost to start a Straw Hat Pizza franchise? It costs on average between $145,000 – $1,568,000 to start a Straw Hat Pizza franchised business.
This includes expenses for construction, equipment, inventory, and initial operating costs. The total investment varies based on factors such as the restaurant format, location, and whether the franchisee leases or purchases the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $20,000 |
| Initial Real Estate Costs (Leased) | $6,000 to $20,000 |
| Construction & Leasehold Improvements | $30,000 to $750,000 |
| Utility Deposits | $2,000 to $70,000 |
| Equipment & Fixtures | $50,000 to $200,000 |
| Exterior Signage | $2,000 to $20,000 |
| Computer System | $6,000 to $25,000 |
| Initial Inventory & Supplies | $4,500 to $12,000 |
| Business Licenses & Permits | $3,000 to $105,000 |
| Insurance (General) | $6,000 to $12,000 |
| Travel/Room & Board for Training | $500 to $4,000 |
| Opening Advertising & Promotional Costs | $10,000 |
| Outdoor Patio Area (Optional) | $0 to $30,000 |
| Food Truck or Trailer (Optional) | $0 to $250,000 |
| Additional Funds | $5,000 to $50,000 |
| Total Estimated Investment | $145,000 to $1,568,000 |
Average Revenue (AUV)
How much revenue can you make with a Straw Hat Pizza franchise? A Straw Hat Pizza franchised restaurant makes on average $472,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $983,000 yearly revenue for similar pizza franchises. Below are a few Straw Hat Pizza competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Straw Hat Pizza Franchise Disclosure Document
Frequently Asked Questions
How many Straw Hat Pizza locations are there?
As of the latest data, Straw Hat Pizza operates a total of 29 locations, all of which are franchise-owned, with no company-owned units. The brand continues to expand primarily through franchising, maintaining its presence in California and select markets.
What is the total investment required to open a Straw Hat Pizza franchise?
The total investment required to open a Straw Hat Pizza franchise ranges from $145,000 to $1,568,000.
What are the ongoing fees for a Straw Hat Pizza franchise?
Straw Hat Pizza franchisees are subject to a royalty fee of 4% of gross sales, while the marketing fee is 1% of gross sales. These fees contribute to the continuous support and promotion of the franchise network.
What are the financial requirements to become a Straw Hat Pizza franchisee?
To become a Straw Hat Pizza franchisee, the financial requirements include a minimum net worth of $500,000 and liquid capital of $250,000. These requirements ensure that potential franchisees have the necessary financial stability to support the initial investment and operational expenses associated with opening and running a Straw Hat Pizza restaurant.
How much can a Straw Hat Pizza franchise owner expect to earn?
The average gross sales for a Straw Hat Pizza franchise are approximately $0.47 million per location. Assuming a 15% operating profit margin, $0.47 million yearly revenue can result in $71,000 EBITDA annually.
Who owns Straw Hat Pizza?
Straw Hat Pizza is owned by Straw Hat Restaurants Inc., a privately held company governed by a board of directors, primarily composed of franchise owners.
Disclaimer
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