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FDD Talk: The Figaro’s Pizza Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on April 4, 2016

in FDD Talk 2017: Food Franchises, Franchise Earnings, Pizza Franchises

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Figaro's Pizza Box

In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Figaro’s Pizza franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Figaro’s Pizza franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Figaro’s Pizza’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average gross revenues for the top 10% (based on annual gross revenues), top 25%, second 25%, third 25%, bottom 25%, and all 56 franchised Figaro’s Pizza stores that have been open for at least one year as of December 31, 2014

Section I – Background Information

Figaro’s Pizza got its start back in 1981 when entrepreneurs Corkey Gorley and Al Debacker wanted to help families in their quest for fast but quality food. The big innovation Figaro’s brought to the pizza industry was the take-and-bake concept – the pizza shop preps the pizza but then the customer takes it home to bake it in their own oven so that it’s ready when they need it. Eventually the chain also added ovens so fans could also enjoy their pizza hot out of the oven in the restaurant environment.

The company started franchising its concept in 1986.

The most recent peak in the number of Figaro’s Pizza locations was in 2008 when the chain boasted 123 shops domestically and two that were located outside the U.S. Since then the chain’s number of U.S. locations has declined by more than half, all the way down to 57. The number of international locations has grown slightly to nine.

Here’s how Figaro’s Pizza keeps the dough stretched tight in the highly competitive pizza segment:

Wholesome Food

Figaro’s Pizza is dedicated to creating pizza masterpieces that are also wholesome. That means no MSG, ever. It also means no fillers or extenders, using only real cheese, and pizza dough that is freshly prepared on-site each and every day. The chain’s sauces use imported extra virgin olive oil, and the choice of meats are made on the lean side to keep things as healthy as possible. The vegetables used are always fresh, never frozen or canned.

The Take-and-Bake Concept

Figaro’s was a pioneer of the take-and-bake concept. It’s a life-saver for many busy families who want to eat a family meal in the comfort of their home with minimal time spent on preparing the meal. For added convenience, Figaro’s is one of the few chains that will deliver a pizza to your home baked or not baked, as you prefer.

It’s important to note here that none of the top five pizza chains offers a take-and-bake option. That’s because they’re unwilling to make the commitment of making fresh dough on a daily basis. And the industry leader in the take-and-bake option (Papa Murphy’s) doesn’t offer baked pizzas as well, which means Figaro’s is unique in the pizza chain segment.

The Menu

In addition to its pizza masterpieces, Figaro’s offers lasagna and calzones as well. The calzones can also be a take-and-bake option, and the chain also provides instructions for its take-and-bake breadsticks and cinnamon stix. Customers can also reheat chicken wings from the chain following its take-and-bake guidelines.

The Crust

The foundation of any pizza masterpiece is the crust. At Figaro’s, customers can choose between its original crust, Sicilian pan crust, or a thin crust. Its proprietary blend of dough ingredients results in a crust that bakes up light and crisp, whether it’s baked in the restaurant or at home.

Supporting Communities

Figaro’s launched its own non-profit charitable organization called HELP – Helping Education with Love and Pizza. It supports different educational organizations through donations in the local community to give kids the brightest future possible. It does this by making grants to schools, bands, and athletic teams.

Section II – Estimated Costs

  • Please click here for detailed estimates of Figaro’s Pizza franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis

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