In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the Your Pie franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Your Pie franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Your Pie franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Your Pie’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, median, high, and low gross sales for the top tier, middle tier, bottom tier, and all 13 Your Pie Restaurants that used the Fixed Price Menu for all twelve months in the Period (the “Fixed Price Restaurants”)
- 2016 average, median, high, and low gross sales for the top tier, middle tier, bottom tier, and all 11 Your Pie Restaurants that used the Variable Price Menu for all or a portion of the twelve months in the Period (the “Variable Price Restaurants”)
Section I – Background Information
14 Things You Need to Know About the Your Pie Franchise
Enters 2017 on a High Note
1. At the start of 2017, Your Pie stated that it was ready to continue its momentum from 2016 and further expand its footprint throughout 2017. Your Pie spent 2016 growing its customer base in existing territories and signed 26 new franchise agreements to enter 13 new states, including North Carolina, Iowa, Ohio, Mississippi, and Colorado.
2. Drew French, Your Pie’s founder, said that Your Pie “is putting the entire QSR industry on notice that [it] will be pursing even more aggressive growth in 2017, leveraging the unique franchise opportunity, successful business model, and strong unit economics [it has] developed.” At the time of the press release, Your Pie said that it plans to open at least 25 new locations by the end of 2017.
Launches National Catering Program
3. In May, Your Pie announced a new catering program that was created as a way for local franchise owners to become even more involved in each of the communities they serve, which is a fundamental part of Your Pie’s mission statement.
4. According to Drew French, founder of Your Pie, “Through our catering program, we are able to highlight all of our flavor profiles, including our new Panini options and fan-favorite pizzas, while also increasing Your Pie’s visibility in our local communities. Whether it’s for a luncheon meeting, Super Bowl party or a birthday celebration, our customers will be able to get a taste of Your Pie’s unmatched quality and seasonal ingredients with a convenience that can’t be beat.”
5. The company also believes that mobilizing its franchises will allow the brand to become more accessible and stronger leaders in the pizza segment.
Featured on Top Lists
6. As Your Pie continues to create innovative menu items, the company has attracted media attention from several national publications. At the end of July, Your Pie announced that it had earned a spot on Restaurant Business Online’s Future 50. According to Restaurant Business Online, “simple, easy-to-understand food—pizza, tacos—has dominated the list of fastest-growing small concepts. This year, new cuisines are rising to the top, signaling increasing acceptance of different ingredients, flavors and formats.”
7. One month prior, at the start of June, Your Pie’s Peach Prosciutto Pie was named one of America’s most innovative menu items by QSR Magazine in the Taste of Place Division. QSR Magazine noted that the pizza was an ode to Your Pie’s home state of Georgia and features the state’s signature fruit, peaches, along with a house-made balsamic reduction, prosciutto, and parmesan cheese.
8. Your Pie’s unique pizza even earned the brand a trip to the World Pizza Games in Parma, Italy, where representatives from the company competed against some of the world’s best pizza makers. The Peach Prosciutto Pie was featured as Your Pie’s seasonal summer menu item and was available until August 31.
Celebrates National Ice Cream Day
9. On July 16, Your Pie celebrated National Ice Cream Day by offering customers a free scoop of gelato. The pizza chain’s free gelato offer was featured in several websites listing all the places to get free ice cream, including BuzzFeed, Time Magazine Online, Yahoo! News, Parade Magazine Online, Thrillist, and several others.
10. Your Pie also invited customers to share their free gelato day experience by tagging their pictures on Instagram and Twitter with the hashtag #YPFreeGelato. Everyone who uploaded a photo featuring the hashtag was entered to win free gelato for the rest of 2017. Your Pie’s favorite images were also featured on its website.
11. Your Pie was founded in 2008 by Drew French in Athens, Georgia. French was inspired to open a quick-serve pizza place that utilized brick ovens after vacationing in Ischia, an island off the coast of Naples where brick oven pizza was everywhere.
12. It took two years for French to develop Your Pie’s concept and since then, the company has worked hard to create an inviting culture that is dedicated to craftsmanship and quality. Your Pie began franchising the same year the first location opened. Initially, the company only opened locations in the Athens, Georgia area.
13. In 2010, Your Pie expanded beyond its first communities and in 2016, the company began opening locations outside of the Southeast. Today, there are more than 40 Your Pie restaurants in the U.S.
Entrepreneur’s Franchise 500
14. Your Pie has only appeared once on Entrepreneur’s annual Franchise 500 list (it ranked No. 391 in 2016). The company did earn a spot on Entrepreneur’s 2013 Top New Franchises list at No. 66.
Section II – Estimated Costs
- Please click here for detailed estimates of Your Pie franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Your Pie’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- In 2015, Your Pie introduced a new fixed priced menu where all entrees were priced at $7.99 with unlimited toppings (the “Fixed Price Menu”). All franchisees who open new Your Pie Restaurants are required to use the Fixed Price Menu.
- Your Pie offered existing franchisees the option to transition from its original menu, which included variable pricing and additional charges for additional toppings (the “Variable Price Menu”), to the Fixed Price Menu.
- While most franchisees have transitioned to the Fixed Price Menu, some have not and others have transitioned within the past twelve months.
- The financial performance representation that appears below provides Gross Sales information for 24 franchised Your Pie Restaurants (the “Covered Restaurants”) during all of the period between April 4, 2016 and March 31, 2017 (the “Period”).
- The Covered Restaurants include 13 Your Pie Restaurants that used the Fixed Price Menu for all twelve months in the Period (the “Fixed Price Restaurants”) and 11 Your Pie Restaurants that used the Variable Price Menu for all or a portion of the twelve months in the Period (the “Variable Price Restaurants”).
- The Covered Restaurants do not include 10 franchised Restaurants that were not open throughout the entire Period, and four Restaurants owned by Lineage or other entities owned by the same owners who own Your Pie, which it considers to be affiliate-owned Restaurants.
- The financial information in this financial performance representation is provided only for the Covered Restaurants and only for the Period.
- The data presented has been generated using financial reports submitted by the Covered Restaurants. Prospective franchisees are advised that no certified public accountant has audited the figures or expressed his or her opinion concerning the figures.
- Your Pie has not verified the Gross Sales figures provided or made inquiries to determine whether they are in fact accurate and complete, although it has no information or other reason to believe the data is unreliable. Each franchisee-owned Your Pie Restaurant submitted their Gross Sales data on a basis as required by the franchisees’ Franchise Agreements with Your Pie.
Part 1 – Gross Sales for Fixed Price Restaurants During the Period