(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 Villa Pizza’s 2011 Franchise Disclosure Document

• During the calendar year 2010, the franchisor’s affiliates owned and operated 149 Villa Pizza and Villa Fresh Italian Kitchen restaurants. Of the 149 restaurants, 144 were open for one year or more.

• Your individual financial results are likely to differ substantially from those of the affiliate-owned Villa Pizza and Villa Fresh Italian Kitchen restaurants stated in the following financial performance representation.

• In addition, the following average annual gross sales figures do not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the average annual gross revenue or gross sales figures to obtain your net income or profit.

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  The average affiliate-owned Villa Pizza or Villa Fresh Italian Kitchen restaurant included in the calculations below is a mature restaurant; accordingly, a new franchisee’s individual gross sales are likely to differ from the results stated below.

• Further, your gross sales and your financial results will depend upon, among other things, such factors as your location; local and national economic conditions; how well you follow Villa Pizza’s and/or Villa Fresh Italian Kitchen’s methods and procedures; your management skill, experience, and business acumen; whether you personally manage your restaurant or hire a manager; the region in which your Villa Pizza or Villa Fresh Italian Kitchen restaurant is located; whether the premises are in a new or existing center; the physical size and location of your restaurant; the condition of the premises and the amount and nature of tenant improvements required; the architectural criteria of the center; the HVAC and electrical systems present or necessary; the local market for the company’s product; the competition in your local market; the prevailing wage rate; Federal, State, and local taxes; media and advertising cost; and the sales level reached during the initial period.

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