Expansion through franchising

Does anyone here have any experience with franchising their business? I am looking to take our franchising to the next level. Currently, we have 2 corporate locations and 6 franchises. All of our franchises are owned by former employees that were looking for a way to make a better living for themselves.

I’m looking for ways to sell franchises. Since we have only franchised to former employees, it was an easier sell since they know how we operate. If anyone has any advice, I would appreciate it! I’m working on a franchise information packet now and am hoping to start going to franchise expos by the fall. I’m mostly looking for marketing advice, but any thoughts are appreciated.

There are a lot of legalities, which I assume you are aware of.
Do you have a UFOC?

Yes

We have some updates to make too. Right now we don’t charge a franchise fee or royalty. We just charge for dough, sauce, and cheese which we keep between 30-35% of the menu sale price of a pizza. In addition, our franchisees are required to buy our custom pizza boxes from one of 2 purveyors which give us a check every month for $2 for every bundle of boxes they sell to one of our stores.

We’re talking to US Foods, Sysco, and a local distributor about requiring any new franchisee to purchase non-pizza items from a set of items from them to maintain our quality control standards. They will give us a 2% kick back from any sales to our franchises.

If you don’t mind me asking, what’s the name of your business?

I’ll tell ya… after 32 years w/ Domino’s… and 3 weeks on my own— not so sure I made the right choice.
I hated Domino’s… by the same token, sometimes the devil you know is better than the one you don’t.
That said- whether I sink or swim- no regrets leaving the mob.
I think, ultimately, maybe a middle ground would have been a way to go- not the Mob, but just a gang. :slight_smile:

We Have worked with many franchise groups. Some from their fist shop to their 500th nation wide. We would like to have the honer of to doing your layout and design plans and equipping your shops.

George Mills

We just charge for dough, sauce, and cheese which we keep between 30-35% of the menu sale price of a pizza.

Do you set prices?
If dough, sauce & cheese is 30-35%- not including box, toppings, etc, what’s your ideal FC on a large 3-Topping Pizza, for example?

Are you saying you think going with a smaller franchise may have been a better choice than opening your own store?

Yes.
I’ve always believed in franchising- has its + and - but I think it can be a good thing.
Like everything- lots of factors and variables but I think that may have been a good way to go.
Next 6 months will tell!
Franchises and franchising are like a marriage- it has to work and make sense for both- from the standpoint of power, control, responsibility and so on.

What do you feel the biggest advantages of a franchise are?
Brand Recognition?
Marketing?
Procedures?
COGs?

What’s your population in a 10 mile radius?

Just curious…thanks!

All of those… those are the positives.
There are, naturally, negatives as well.
I don’t know that answer- I know 10K are within 2 miles.
This is a VERY different thing I am doing- so LOTS of new for me.
This is a downtown slice/pie type place- slices, pies, paninis & salads.
No delivery, 11-8 Mon-Sat.
The UN-Domino’s- pies are $10-15 for 12" and $14-21 for 18"
No deals, no discounts.
All new for me.

We don’t set any prices at all. Right now our franchisee’s food cost on a large plain is about 33%, depending on their menu price. We judge based what a large 16 in pie goes for in our markets (which are all pretty similar atm). Our 2 corporate locations buy the dough, sauce, & cheese from the wholesale arm of our business. I’m the GM of one of the corporate stores and my brother is the GM of the other, this helps us “feel” the load that our franchise owners have since we’re owner/operators like them. I recently developed a skin allergy to pizza flour, which is why I’m trying to expand the wholesale end of things and work my way out of the pizza store operations a little.

Most of our franchises are charging $2 for each topping on a large pizza on top of a base price of around $11.

We also keep our dough/sauce/cheese prices the same every week; we haven’t had to raise them for a few years now. We like to provide the stability for our franchisees; but we’ll raise the prices if we feel like the market is settling at a higher price point. We also like to own the building that our franchisees operate in and keep the rent at a reasonable price, slightly below the going market rate. It’s a win-win.

Cocco’s Pizza in PA

I recently developed a skin allergy to pizza flour

Have you looked in somolina or corn meal?
I knew somebody at DP who had that, as well, though it was many years ago.