Investing in Straw Hat Pizza
Routes to Ownership
Open a New Store
- More flexibility on location and city
- Control over the lease
- All new equipment and décor
- Lower maintenance costs
- You pick and train your own team
Buy Existing Store
- Known sales and expenses
- Established customer base
- Faster timeframe
- Easier financing
- Experienced crew
To become a Straw Hat Pizza Franchisee, we are looking for an entrepreneur who is not afraid to take a risk in the hopes of making profits. We are looking for motivated individuals or partnerships who will strengthen the Straw Hat Pizza brand. You do not need to have restaurant experience to be successful. It will depend more on the following skills:
- Ability to design and implement a business plan
- Belief in the Straw Hat Pizza products and systems
- Outgoing and good with customers and employees
- Not afraid to get out in the community to market your location(s) in person
- Time to be involved in your business. The restaurant business is not for absentee owners.
|Expense||Estimated Amount or Estimated Low-High Range||Method of Payment||When Due||To Whom Paid|
|Initial Franchise Fee||$30,000||Lump Sum||When applicable contract signed||Straw Hat Restaurants, Inc.|
|Initial Leased Real Estate Costs||$6,000-10,000||As incurred||At lease signing, monthly thereafter||Landlord|
|Leasehold Improvements and Construction||$250,000-$511,000||As arranged||Before opening||Contractors, Architect|
|Utility Deposits||$2,000-$4,000||As incurred||Before opening||Utility Company|
|Equipment and Fixtures||$100,000-$175,000||As incurred||Before opening||Vendors|
|Signs, Menu Boards, and Décor||$2,000-8,000||As arranged||Before opening||Vendors|
|Computer System||$10,000-$25,000||As arranged||Before opening||Vendors|
|Initial Inventory||$7,000-$10,000||As incurred||Before opening||Vendors|
|Licenses and Permits||$3,000-$5,000||As incurred||Before opening||Public Agencies|
|Insurance||$6,000-$8,000||Installment||As arranged||Insurance Company|
|Travel and Room during training||$1,500-$3,000||As incurred||Before opening||Hotel and third parties|
|Opening Marketing||$0-5,000||As incurred||Before opening||Vendors|
|Additional Funds (Working Capital)||$40,000-$60,000||As incurred||Employees||Vendors|
Item 19 Financial Performance Representations
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Straw Hat Restaurants, Inc. 18 Crow Canyon Court, Suite 130, San Ramon, California 94583, telephone number (925) 837-3400, the Federal Trade Commission, and the appropriate state regulatory agencies.
Ways to Finance Your Restaurant
- Cash – A potential option if you have the financial resources available.
- 401k Rollover – If you have significant amount in your 401k, there are ways to set up a business and rollover the 401k to fund it. This type of investment can’t be passive so you would need to be an active participant in the business.
- Partners – Writing a great business plan and looking for a partner is another way to finance your Straw Hat Pizza restaurant. This would be the responsibility of the buyer to find a partner.
- Seller Financing – If you are buying an existing Straw Hat Pizza location from the current owner, they may be able to offer some financing. This also might work if you find an existing location selling by an independent pizzeria or other chain, then convert it over to a Straw Hat Pizza.
- Vendor Financing – This is not for the entire business, but some items purchased during the building of your store may have financing available from the vendor. It can help manage your startup costs.
- SBA Loans – You will need an excellent credit score as well as good personal credit to qualify for an SBA loan or traditional loan from a bank. This will depend on the individual lender and business factors as provided by your business plan. We do not partner with any specific company or bank. Start with your current bank and find out what their criteria and collateral requirements are to fund a new business.
- Ideal: 2800-3200 Sq. Ft.
- Strip shopping centers with solid anchor
- Easy accessibility
- Ample parking
- Excellent visibility of signage
- Should be on a main street - NOT at the edge of town
- Space should not be too narrow or difficult to lay out
- Adequate Utilities (Gas, Electric) to support operations
- Zoned for Restaurant Use
- Ability to install oven hood
Key Area Demographics
- Large household size in area
- High percentage of children and young adults
Frequently Asked Questions (FAQs)
Does this franchisor just pick any potential franchisee if they have the money or are they concerned about picking a quality franchisee and saying no when they need to for the sake of the other franchisees?
What type of location is best for a Straw Hat Pizza? I have one in mind, will it be ok?
How does the franchisor support the franchisee?
Multiple ways, from the time a franchisee signs the franchise agreement, we take a turnkey approach:
- Having our real estate team work with the franchisee to find the location
- Operations team works to design the layout of the restaurant
- Construction team will do the entire build out if required
- Assist with locating either new or used equipment
- Intensive 3 week/8 hours a day/6 days a week training program
- Prior to opening we send an operations person to your location to help open, train your staff and be a support person for the opening week.
- After opening you will see a field marketing or operations person frequently, plus you can make an appointment for someone to come in and assist you with any issues.