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Below is an in-depth analysis and side-by-side comparison of McDonald's vs Snappy Tomato Pizza including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $1,314,500 - $2,306,500 | $115,500 - $256,000 |
Franchise Fee | $45,000 | $14,000 |
Royalty Fee | 4% | 5% |
Advertising Fee | 4%+ | 2.5% |
Year Founded | 1955 | 1978 |
Year Franchised | 1955 | 1981 |
Term Of Agreement | 20 years | 15 years |
Term Of Agreement | 20 years | 15 years |
Renewal Fee | $45K | $2.5K |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant | Additional training available as needed |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software | Newsletter, Meetings, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op advertising, Ad slicks, Regional advertising |
Operations |
82% of all franchisees own more than one unit
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
International franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 20 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
In 1978, Bob Rotunda went to the races and put all his money on a horse named Snappy Tomato. The horse won. Rotunda took his winnings and opened the first Snappy Tomato Pizza that year. The company began franchising three years later.
Today Snappy Tomato Pizza has locations across the United States, Canada and Great Britain serving pizza, hoagies, salads and appetizers.