Pizza Pizza franchise
I am thinking if i should invest in a Pizza Pizza Franchise. How hard is it to get approved for The Canada Small Business Financing Program? anyone have any experience with this?
Entrepreneurship & Small Business
Nov 9th, 2010 3:53 pm
Nov 9th, 2010 4:21 pm
Nov 10th, 2010 3:09 am
Nov 10th, 2010 5:44 pm
Nov 10th, 2010 5:50 pm
Korozive wrote: ↑I think franchises must be also seen like Real Estate or stock market... with a vision of the future of the company in general.
For example, Tim Horton is now very very expansive. But for someone who bought a franchise 10 years ago, he probably had a good price. More, if he sells his business now he would make a massive profit.
and theres royalty fee of 6% of sales every week and an advertising fee of 6% weekly as wellOur franchise fee is $30,000. The franchise fee secures the right to own and operate a Pizza Pizza franchise in a given territory and the use of the Pizza Pizza trademarks, trade name, recipes and retail marketing plan. Pizza Pizza also provides:
* Site selection, lease negotiation
* Assistance from franchise operations experts both before and after the opening of your restaurant
* State-of-the-art distribution centre
* Administrative systems
* Comprehensive training program consisting of classroom instruction and practical restaurant experience
* Operational support
* Financing assistance is available to qualified purchasers
3. The Franchise Fee buys a lot and the support services are great. How much money is required to open a Pizza Pizza franchise?
In order to obtain financing from a chartered bank or trust company, you must have at least 25 to 30% of the purchase price as an unencumbered cash down payment.
Nov 10th, 2010 7:06 pm
jordanr1987 wrote: ↑also did a quick search on franchise info
and theres royalty fee of 6% of sales every week and an advertising fee of 6% weekly as well
Nov 11th, 2010 10:08 am
Dec 7th, 2010 2:58 am
RETAILER wrote: ↑You wish. They supply the material and monitor sales and consumption like a hawk. If they find any proportion gone wrong they will send an arbitrary fine or warning. Can't start a business based on how much you can scrape off the bottom.
Pizza Pizza used to be good margin. But now with the competition, economy and slashed prices, there is not much profit to make. Bring in your family to run the show and you can survive.
BTW, did you notice that their cheese in no more rennet free and more oily?
Dec 7th, 2010 3:54 am
Kuurgen wrote: ↑Well said. They brought in the LCD screens (at franchisee's expense of course) for their cash registers with a big "No receipt, your order is free," just to catch/stop franchisees from skimming.
I had some friends who gave up their franchise (losing money), and just before they did so, some clown came up from HQ to advise them. His big advice was to turn the back room lights off during the day.
Nice eh? The fines system is a joke. pizza's late? pay for the pizza and then pay Pizza Pizza head office a fine.
Better to open an independent shop, make really good pizza and get a good reputation. If you decide you want to walk away from a Pizza Pizza franchise, the do nice things like devalue all the equipment because it's used etc.
Nothing like having a green pepper shipped from head office because you have to. Get caught buying ingredients locally and it's a fine. The prices to their franchisees on ingredients is not competitive at all.
Dec 7th, 2010 10:36 am
BornRuff wrote: ↑ The fines for late delivery does make a bit of sense. The head office is the one who is getting all the telephone and online orders. When you order a pizza, and it comes late, you don't know which franchisee ****ed up, you just know Pizza Pizza ****ed up. If they are going to provide you with all that delivery business, they have a large incentive to make sure you deliver on time.
You've obviously never heard the horror stories of people trying to get out a franchise.Starting your very own independent business is a lot more work and risk. The rewards are higher for sure, but I'm not sure if they are even proportional to the higher risk and work.
Dec 7th, 2010 12:08 pm
Reality is that you will not find a business where somebody else maintains a costly system designed specifically to provide you with orders, and does this at no charge to you. It is actually quite beneficial to the franchisee that they permit you to pass the cost of this service onto the customer rather than take it out of the posted price you receive.Kuurgen wrote: ↑They get compensated very well for orders coming into their call centre. that 3.50 delivery charge or however much it is now goes to the call centre and NOT the drivers or the franchisee as they would have you believe.
So not only do they get paid 3.50 for that, they put the cost of a late pizza on the franchisee as well as a fine on top.
Pizza Pizza has been accused of heavy handed tactics in the past.
No, the product has nothing to do with it. I'm comparing the difference between investing in an established successful company and starting up your own.
One of the main reasons a company sells franchises is so that they can expand with less risk and capital investment from themselves. PP certainly wants you to succeed, because they don't want the stream of royalties to dry up, but no, they wont shed a tear if your location fails. Like every situation in life, especially in business, you gotta look out for your own interests, cuz everyone else is primarily concerned with their interests, not yours.
Dec 7th, 2010 1:31 pm
BornRuff wrote: ↑ One of the main reasons a company sells franchises is so that they can expand with less risk and capital investment from themselves. PP certainly wants you to succeed, because they don't want the stream of royalties to dry up, but no, they wont shed a tear if your location fails. Like every situation in life, especially in business, you gotta look out for your own interests, cuz everyone else is primarily concerned with their interests, not yours.
Agreed, I would never go against an established Tim Horton's, there's just no point at all. My thought was with pizza you have a better chance of getting a good reputation, so long as you put out quality product.When I say there is less risk, I am talking about how if you set up a Pizza Pizza, or a Tim Horton's, it generally has a much higher chance of being successful than if you set up a similar independent store. There is already a very well built up customer base for those brands.
Dec 8th, 2010 3:05 am
Looking at the numbers does not make owning a franchise seem like a 100% bad idea. You are right though, many complaints about franchise ownership do come from people who do not fully understand what they are getting into. The issues you brought up are a good example. They are all things you should have known before buying into the franchise. They are not necessarily problems, but if you don't like that set up, don't go the franchise route.Kuurgen wrote: ↑Yes, I think that's the real issue, is people who don't have a clue and don't look at the hard numbers get caught up in buying something like a franchise.
I may be a bit close to this, because I've seen firsthand from a friend who drank the franchisee koolaid, only to find out all that glittered was not gold.
You can only mimick other stores processes to an extent. Many things are behind the scenes and hard to copy from the outside, and other things are simply patented. I don't really know if Pizza is an easier industry than coffee, but ya, who knows.Kuurgen wrote: ↑Agreed, I would never go against an established Tim Horton's, there's just no point at all. My thought was with pizza you have a better chance of getting a good reputation, so long as you put out quality product.
I'm not a franchise type of guy, but that definitely doesn't mean if I was setting up my own store that I wouldn't borrow some established outfit's processes.
Kuurgen wrote: ↑Pizza Pizza has a very bad reputation when it comes to dealing with it's franchisees.
http://www.wikidfranchise.org/19930925-millions-are
Lorn Austin is no longer with the company, he was responsible for the 967-1111 jingle, and was drummed out unceremoniously for whatever reasons.
Dec 8th, 2010 4:43 pm
Dec 8th, 2010 4:56 pm
Tristan12345 wrote: ↑I am thinking if i should invest in a Pizza Pizza Franchise. How hard is it to get approved for The Canada Small Business Financing Program? anyone have any experience with this?
Dec 8th, 2010 5:32 pm
Dec 10th, 2010 7:45 pm
Dec 11th, 2010 12:01 am
4. Does your cheese contain enzyme(s) derived from animal source? Our mozzarella (fresh/frozen) and goat cheese contain microbial enzyme that is derived from non-animal source. Our cheese blend, feta, provolone and parmesan cheese contain lipase originates from animal source.
Dec 11th, 2010 12:56 am
Dec 12th, 2010 6:06 pm
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