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Below is an in-depth analysis and side-by-side comparison of Chicago's Pizza vs Arizona Pizza Company including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $87,300 - $173,100 | $400,000 - $865,000 |
Franchise Fee | $12,000 | $35,000 |
Royalty Fee | 4% | - |
Advertising Fee | - | - |
Year Founded | 1979 | - |
Year Franchised | 1981 | - |
Term Of Agreement | 5 years | - |
Term Of Agreement | 5 years | - |
Renewal Fee | - | - |
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 | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | - |
Support | Grand opening, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Co-op advertising, Ad slicks | - |
Operations |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | - |
International Expansion | No | - |
Robert McDonald enjoyed working in the pizza business. When he was suddenly terminated from his job with an Indiana pizza restaurant, he decided to start his own pizza chain. When Ron Epple, who had worked with McDonald as director of franchise training, heard what his old co-worker was up to, he asked to be part of it.
In 1979, the two founded Chicago's Pizza. At lunchtime, restaurants serve pizzas by the slice or in seven-inch rounds from counters and drive-thru windows. In the evening, customers can use the drive-thru window to pick up phone orders. Most of the locations also have dining rooms where customers can enjoy Chicago's 29-inch pizza.
The company has franchises in Indiana and Ohio. There is also a Chicago's Pizza location in Seville, Spain.
PROGRAMS AVAILABLE: 1. SINGLE-UNIT DEVELOPMENT: Franchisee opens a restaurant at a specific address Franchisee is able to open additional units based on franchisee's ability and desire to expand 2. AREA DEVELOPMENT: Secures exclusive rights to a market. Minimum development is five restaurants Opens and operates the units in the development area Receives a reduction in franchise fees (based upon number of restaurants opened) Pays an area development fee based on the demographics of the territory. However, a credit is given against the franchise fee as each restaurant opens 3. MASTER DEVELOPER: Secures exclusive rights to a geographic area (County, state, country). There are minimum requirements for the territory (not less than a twenty-store market). Shares in franchise and royalty fees for performing services (sales, operations, training) to franchisees in the market for the term of the franchise & renewal periods Has an opportunity to participate on a large scale in building an international concept May enter into a management agreement to provide services beyond the term of the Master Agreement. Receives a Reduction in Fees for Developer- Owned and Operated Units Based on Master's Percentage Participation in the Fees Received for Providing Services Represents an opportunity to participate on a large scale in Building an International Concept Is required to open one restaurant that serves as the training facility before opening franchise restaurants in the area Pays a master developer fee based on the size of the territory and the demographics of that market