FDD Talk (Pizza Franchise Series): Median Total Sales, Plus Pro Forma Restaurant and Game Room Expenses, for Stevi B’s Pizza Buffet Restaurants

(Ambrosio’s note:  Over the next few days, I will be discussing the Item 19 financial performance representations of 10 up-and-coming pizza franchises that you’ve probably never heard of. 

Unlike Papa John’s, Papa Murphy’s, Marco’s Pizza, and Hungry Howie’s (all of which I’ve featured previously on FDD Talk), these franchises are not yet household names. But I do think they are worth examining because they can provide us with helpful clues on the profit potential of pizza franchises in general.

Please stay tuned for my industry-level bottom line analysis to be published at the end of this series.)

Highlights of Stevi B’s 2011 Franchise Disclosure Document

• ACG PIZZA PARTNERS, LLC offers franchises for restaurants specializing in all-you-can-eat pizza buffet and beverage items under the mark Stevi B’s Pizza and other related marks.

• The total investment necessary to begin operation of a Stevi B’s Pizza franchised business ranges from $498,000 to $669,000. This includes $28,500 that must be paid to the franchisor.

• If you sign a Development Agreement to develop multiple restaurants in a specified area, you must pay the franchisor a development fee equal to the initial franchise fee for the first restaurant ($28,500), plus 50% of the initial franchise fee for each additional restaurant that you are to establish under the Development Agreement ($23,500).

Total Sales, Fiscal Year 2010

• This section presents actual sales at locations with “redemption centers” at 15 franchised and company-owned restaurants during fiscal year 2010. Currently, redemption center game rooms are required in all future locations. Included are data for four company-owned restaurants as of January 2, 2011, which are located in Augusta, Georgia; Hiram, Georgia; Marietta, Georgia; and Woodstock, Georgia.

• Excluded from the data are restaurants that have not been open for 24 months as of December 31, 2010; restaurants that experienced a change in ownership in the last 24 months as of December 31, 2010; and restaurants experiencing a one-time significant operational event (i.e. extensive and extended road closures).