In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Boston’s Restaurant & Sports Bar franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Boston’s Restaurant & Sports Bar 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 Boston’s Restaurant & Sports Bar franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Boston’s Restaurant & Sports Bar’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, high, and low sales volume for the 22 franchised Boston’s Restaurant & Sports Bar restaurants in the U.S. that have been open for more than 24 consecutive months as of December 31, 2016
- 2016 average, high, and low sales volume for the 2 affiliate-owned Boston’s Restaurant & Sports Bar restaurants in the U.S. that have been open for more than 24 consecutive months as of December 31, 2016
Section I – Background Information
11 Things You Need to Know About the Boston’s Restaurant & Sports Bar Franchise
Announces Company Rebranding
1. At the beginning of May, Boston’s Restaurant & Sports Bar rolled out a brand refresh at all of its U.S. locations. The brand wanted to reposition itself as “America’s Sports Restaurant” and place a stronger emphasis on its core products like pizza, pasta, burgers, and wings. Boston’s also unveiled a new logo and tagline to solidify its in-restaurant sports experience. The goal of the rebranding is to better align the U.S. locations with their Canadian counterpart, Boston Pizza. It’s also a part of Boston’s strategy for the next phase of the brand’s growth in the U.S.
2. Eric Taylor, president of Boston’s, said, “For more than fifty years, Boston’s has been a place for friends and families to gather. By streamlining our look and feel in the U.S. to be more aligned with our Canadian locations, we are positioning the company for future expansion and empowering our core of American franchise partners. The Canadian brand has seen incredible success and has really established themselves in the hearts of people across the country. We’re wanting to replicate that here and really become a part of people’s lives in the communities in which we operate.”
3. In addition to the rebranding, Boston’s has reworked its menu. It introduced new items, including a Whiskey Cake dessert and a Veggie Quinoa burger, and will implement key improvements to fan favorites, like an enhanced thin crust pizza offering, from-scratch salad dressings, and meatier, saucier chicken wings.
4. To celebrate its new brand identity, Boston’s encouraged customers to post their most memorable Boston’s moments on Facebook, Twitter, and Instagram using the hashtag #BPFanStories.
Ends 2017 With 33 New Franchise Agreements
5. Boston’s Restaurant & Sports Bar’s U.S. division signed a total of 33 new franchise agreements in 2017, marking a record year of growth for the franchise. The new locations will double Boston’s U.S. presence. The brand’s most recent franchise agreements are for locations in the Great Lakes area; Boston, Massachusetts; and Pocatello, Idaho, all of which are projected to open in 2018. The brand’s other notable franchise agreements include a 15-unit development deal in the Dallas and Forth Worth, Texas areas, with a target completion date of 2023 or sooner.
6. Eric Taylor, president of Boston’s, said, “Boston’s wants to be the place you choose to experience gourmet, scratch-made food while immersed in a total sports environment with family and friends. Our growth numbers validate this idea and truly reflect what our customers are looking for – a fun and entertaining environment where you can experience a quality meal upon every visit. As we continue meeting this demand nationwide, we are seeking qualified franchisees to join our growing Boston’s family.”
Limited-Time Gourmet Pastas
7. In early November, Boston’s Restaurant & Sports Bar introduced a new lineup of gourmet pasta dishes for the winter season. The new dishes were available from November 13 to January 14 and included:
- Chicken and Shrimp Pasta, which featured grilled chicken breast and blackened shrimp over pappardelle pasta tossed in a creamy white sauce and finished with a lemon-garlic butter;
- Louisiana Pasta, with shrimp, chicken, and sausage sautéed with bell peppers and penne pasta tossed in a Cajun cream sauce; and
- Penne Giardino, which had roasted vegetables, marinated mushrooms, fresh tomato, and spinach tossed with penne pasta in olive oil, basil, and fresh garlic.
8. Along with the new pasta dishes, Boston’s introduced new cocktails like the Knockout Punch, a tropical-tasting, refreshing cocktail with Sailor Jerry Rum, Cointreau, and orange juice; and the Lynchburg Ballpark Lemonade, a mix of Jack Daniel’s Tennessee Whiskey, Cointreau, sweet & sour, and Mist Twist.
9. Boston’s Restaurant & Sports Bar was founded in 1964 by Gus Agioritis in Edmonton, Alberta, Canada. The restaurant was initially called Boston Pizza and Spaghetti House. Agioritis started franchising the Boston Pizza concept in 1968. One of the first franchisees was Jim Treliving, who partnered with George Melville in 1973 to open 16 restaurants in British Columbia over the next decade. In 1983, Melville and Treliving bought the Boston Pizza chain from Ron Coyle, who acquired the business from Agioritis in 1978.
10. By the end of the 1990s, the franchise had grown to over 100 restaurants in Canada and the first international locations opened in the U.S. and Mexico around this time. The U.S. and Mexico restaurants were branded under the name Boston’s The Gourmet Pizza and a U.S. headquarters was set up in Dallas, Texas in 1998. The brand has changed its name in the U.S. to Boston’s Restaurant & Sports Bar and there are now over 400 locations in Canada, the U.S., and Mexico.
Entrepreneur’s Franchise 500
11. Boston’s Restaurant & Sports Bar has earned a spot on Entrepreneur’s annual Franchise 500 list a few times in the past 10 years. The brand’s highest rank was No. 146 in 2017, while its lowest rank was No. 420 in 2015.
Section II – Estimated Costs
- Please click here for detailed estimates of Boston’s Restaurant & Sports Bar 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 Boston’s Restaurant & Sports Bar’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
- This statement includes all U.S. Boston’s The Gourmet Pizza Restaurant & Sports Bar Restaurants that have been open for more than 24 consecutive months as of December 31, 2016 (“Reporting Period”), consisting of 22 franchised Restaurants and 2 Restaurants owned by the franchisor’s affiliate (“Item 19 Restaurants”).
- The information below does not include the 2 franchised Restaurants that were not open and operating for the full Reporting Period.
- Part 1 shows the results of the 22 franchised Restaurants, and Part 2 shows the results of the 2 affiliate-owned Restaurants.
- Amounts presented represent the total of food, beverage, and other sales net of sales tax, as polled by the franchisor directly from each of the Item 19 Restaurants’ point-of-sale system.