Q. What is the monthly royalty?
- Our standard royalty is 6% of gross revenue (Gross Sales less taxes and promotions) and 1% marketing fee for the General Advertising Fund (not to exceed 2%). For multiple locations, and for a LIMITED TIME for single locations, we are offering a discounted royalty. Ask a member of the Development Team for details.
Q. How much is the initial franchise fee?
- $25,000, and only $20,000 for qualified veterans.
Q. Will I get my own territory?
- Yep. Typically a half-mile in all directions.
q. How Long does the franchise agreement last?
- 10 years with a 10 year renewal at your option, subject to certain conditions set forth in our Franchise Agreement.
q. How much money can i make?
- The Federal Trade Commission (FTC) restricts a franchisor's ability to answer these type of questions. The Pita Pit does provide information on average annual gross sales per store and average food and labor costs in Item 19 of our Franchise Disclosure Document (FDD).
Q. What are my capital requirements?
- For most bank loans, you will typically need around $75,000 liquidity (cash and stocks) to effectively handle the start-up costs, and you can then attempt to borrow the rest. If you are using a bank and want to sign a multi-unit franchise agreement, you may need at least $100,000 liquidity and a net worth (assets less liabilities) of around $500,000. Of course you may have other sources of capital, such as family or friends, whom do not impose such liquidity requirements.
Q. Do you loan money directly to franchisees?
- No. Pita Pit does not lend money. But we do have relationships with a number of lending sources that provide SBA loans, non-SBA loans, and options that allow you to invest in a new business using IRA or 401k monies. We are an approved franchise on the SBA registry which allows a more efficient loan application process.
Q. Do you require "owner-operators"?
- It depends. Unless you have experience as a multi-unit restaurant operator, at least initially, one investor must commit to working full-time as an owner operator.
q. Do I need food experience?
- Nope, just a good attitude and a great work ethic. We will assist you through the entire startup process and train you how to operate your restaurant using our proven operating system.
Q. HOW DO I FIND A LOCATION FOR MY RESTAURANT?
- Our strategy is to combine your knowledge of your area and our expertise regarding the concept and ideal demographics to assist you in picking the best site. We also pay for a professional firm out of Chicago to help find and give advice on the best locations. Remember, we do not guarantee the level of success you might achieve by leasing a particular site, regardless of our level of input.
q. What is the average store size (square footage)?
- We have designed our stores to work best at 1,000 - 1,400 sq ft. Should you find an excellent location with an unusual shape or size, our construction department can adapt our layout to meet almost any reasonable dimensions.