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

• Section I – Background information on the Uno Pizzeria & Grill franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for an Uno Pizzeria & Grill franchise, based on Item 7 of the company’s 2019 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Uno Pizzeria & Grill franchise, based on Items 5 and 6 of the company’s 2019 FDD

• Section IV – Number of franchised and company-owned Uno Pizzeria & Grill outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of Uno Pizzeria & Grill’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• fiscal year 2018 average sales for the 48 parent-owned and 33 franchised full service Uno Restaurants open during all of fiscal year 2018

• fiscal year 2018 average net sales; cost of sales; direct labor; management salary; payroll taxes and benefits; controllables; advertising and business co-op; royalties; trash extermination and security; other non-controllables; and earnings before repairs and maintenance, utilities, rent and other occupancy costs, depreciation, administration, insurance, interest, and taxes for the 48 parent-owned full service Uno Restaurants open during all of fiscal year 2018

Section I – Background Information

13 Things You Need to Know About the UNO Pizzeria & Grill Franchise

Announces Sale of Company-Owned Restaurants as Part of Re-Franchising Initiative

1.  At the beginning of November 2018, UNO Pizzeria & Grill announced the sale of eight company-owned restaurants to MVPizza, LLC as part of a broader re-franchising initiative. The eight restaurants are located in the Maryland and Virginia markets and are the first markets to be sold in connection with UNO’s re-franchising initiative.

2.  MVPizza, LLC retained all of the management, hourly, and field employees, offering them a unique growth opportunity under franchise ownership. MVPizza, LLC is an affiliate of the Bastian Group, owned by Mr. Amir Yazdi, a successful, California-based operator and franchisee of multi-unit restaurant brands.

3.  Amir Yazdi, president and chief executive officer of MVPizza, LLC and the Bastian Group, said, “I am excited to be part of an iconic brand with such a rich and authentic history as UNO. I am also honored to have such a dedicated team of people who will ensure a smooth transition of the business and to be able to offer them additional opportunities to grow in their careers at UNOs.”

4.  Louie Psallidas, then-president and chief executive officer of UNO, added, “I am pleased to welcome Amir Yazdi and the Bastian Group to the UNO family. I look forward to a mutually beneficial, long-term relationship with Amir and his team and to supporting him in the growth of the UNO brand in his markets. The re-franchising initiative was intended to facilitate the growth of the UNO brand through its new prototype dubbed UNO Next.”

5.  Psallidas added, “The UNO Next design, created in partnership with Synergy Restaurant Consultants, brings forward the rich and authentic history of the UNO brand and combines it with a new contemporary design featuring an open display kitchen, a large bar and community tables designed for groups and socializing, a dedicated area for take-out and a significant technology component. We intend to open a company-owned UNO featuring the UNO Next design in 2019.”

6.  This is the first of two re-franchising transactions entered into by UNO. The second transaction is with a franchise group that operates over 160 restaurants across two brands in 14 states. The second transaction is slated to close in November for the sale of restaurants in certain Northeast markets.

7.  Upon the closing of the second re-franchising transaction, UNO will have 38 company-owned and 54 domestic (and 8 international) franchised restaurants. The company-owned restaurants are primarily based in New England, Florida, and Chicago.

Appoints New CEO

8.  In late November 2018, UNO Pizzeria & Grill announced that Louie Psallidas, CEO of UNO Restaurant LLC for 11 years, decided to step down from his role. Psallidas said, “When I first became CEO of UNO, a wise man told me that it would be important to recognize when the time comes to step away. Now after almost 11 years at UNO I have decided that the time has come for me to step aside and hand over the reins to a new leader.”

9.  Psallidas added that Jim Illaria, former CEO of Applebee’s franchise company Potomac Family Dining Group, had stepped in to take his place as UNO’s new CEO. Prior to joining UNO Pizzeria & Grill, Illaria worked at Igloo Products Corp. as interim president. In the press release, Psallidas said that he would be working with Illaria for a few weeks to “insure a smooth and efficient transition.” He also said, “Jim is a great guy and I wish him all the best success.”

Company History

10.  UNO Pizzeria & Grill was founded in 1943 in Chicago, Illinois when Ike Sewell partnered with Ric Riccardo to open a pizza restaurant. According to company lore, Sewell invented the original Chicago Deep Dish Pizza. However, this claim is controversial as Sewell did not have cooking experience and according to many sources, chef Rudy Malnati Sr., the father of Lou Malnati, is the real inventor of deep dish pizza. Regardless of where the original recipe came from, Sewell and Riccardo’s restaurant was a hit.

11.  After opening a second restaurant a block away in 1955, Sewell and Riccardo changed the first restaurant’s name to Pizzeria UNO and named the second location Pizzeria Due. Not long after, a third Pizzeria UNO followed and in 1978, Sewell began franchising the restaurant concept under the UNO Restaurant Holdings Corporation.

12.  The first franchised locations opened in Boston, Massachusetts and the chain expanded quickly over the next decade. Since then, the company has grown steadily across the United States and is now called UNO Pizzeria & Grill. There are also UNO Pizzeria & Grill locations in Honduras, South Korea, Saudi Arabia, United Arab Emirates, and India.

Entrepreneur’s Franchise 500

13.  UNO Pizzeria & Grill did not rank on Entrepreneur’s 2019 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Uno Pizzeria & Grill franchise costs, based on Item 7 of the company’s 2019 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Uno Pizzeria & Grill’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  50
• Outlets at the End of the Year:  43
• Net Change:  -7

2017

• Outlets at the Start of the Year:  43
• Outlets at the End of the Year:  44
• Net Change:  +1

2018

• Outlets at the Start of the Year:  44
• Outlets at the End of the Year:  49
• Net Change:  +5

Company-Owned

2016

• Outlets at the Start of the Year:  77
• Outlets at the End of the Year:  73
• Net Change:  -4

2017

• Outlets at the Start of the Year:  73
• Outlets at the End of the Year:  66
• Net Change:  -7

2018

• Outlets at the Start of the Year:  66
• Outlets at the End of the Year:  50
• Net Change:  -16

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• The sales information which follows was aggregated from parent-owned and franchised Full Service Uno Restaurants open for the entire fiscal year ended September 30, 2018. Parent-owned Uno Restaurants are operated by subsidiaries of the parent company URL.

• Information from parent-owned restaurants that operate under the names Pizzeria Uno, Pizzeria Due, and Sue Casa is not included.

• The expense information which follows was aggregated from parent-owned Full Service Uno Restaurants only, since expense data is not available for franchised Full Service Uno Restaurants.

• As of Uno Pizzeria & Grill’s 2018 fiscal year end, the average time in operation of the parent-owned Full Service Uno Restaurants included in this analysis is 22 years. The Full Service Uno Restaurants included in this analysis are located in the following states:

• Florida – 5
• Indiana – 1
• Maine – 2
• Maryland – 1
• Massachusetts – 17
• New Hampshire – 4
• New York – 12
• Pennsylvania – 1
• Rhode Island – 3
• Vermont – 1
• Washington, D.C. – 1
• Total:  48

Part 1 – Statement of Average Sales for All 48 Full Service Company-Owned Uno Restaurants and All 33 Full Service Domestic Franchised Uno Restaurants Open for the Entire 52 Week Period Ended September 30, 2018

• The table below contains a comparison of certain financial information received from Uno Pizzeria & Grill franchisees along with the average financial results of Uno Pizzeria & Grill’s parent-owned Full Service Uno Restaurants.

• The numbers and percents indicated in the table below relate to the 48 parent-owned Full Service Uno Restaurants and 33 domestic franchised Full Service Uno Restaurants open during all of fiscal year 2018 (October 2, 2017 to September 30, 2018).

• While Uno Pizzeria & Grill suggests that its franchisees utilize a uniform accounting system in reporting, which is consistent with generally accepted accounting principles, it should be expressly noted that Uno Pizzeria & Grill cannot attest to (i) the accuracy of the information received from its franchisees, or (ii) whether such information was actually prepared in accordance with generally accepted accounting principles.

A.  Statement of Average Sales for All 48 Full Service Company-Owned Uno Restaurants Open for the Entire 52 Week Period Ended September 30, 2018