If you want a business opportunity that is well-established and has the reputation of a lifetime, then you are going to want to check this out. Sure, there are millions of opportunities out there, but they aren’t all butterflies and rainbows. And technically, no business will be butterflies and rainbows. Owning and operating a business is hard work.
But it’s also extremely rewarding. Especially when you choose a business that has history on its side. And this company has been in the pizza-making business since the early 1970s. Which says a lot about it, right? And considering this pizza joint has made a name for itself for being social and tasty, I would say this is a franchise opportunity that you won’t want to miss out on.
But, there are a few things that we have to cover first. Because I can’t have you jumping into any business venture without providing you with the proper details on this company and its background. That’s just setting you up for failure.
At Godfather’s Pizza, they also want you to succeed. And this is a business that you can pour your whole heart and soul into without feeling taken advantage of. Because it’s like having a big family. Filled with moral support and training. But, is it really as good as it seems?
Sure, it can be. But there are some things that may dissuade you from choosing this franchise opportunity. And I won’t spill the sauce just yet. Let’s get into what this company is and the history behind how it got started. So that you can see if you resonate with their passion and background. Then we will dive in and find out the details on the actual franchise opportunity and find out if it’s worth your investment.
The Godfather
There’s nothing better than biting into a perfectly cheesy slice of pizza. Except when you bite into a perfectly baked pizza that’s been prepared by The Godfather. Ok, maybe he won’t actually be cooking up your pizza himself. But you can be sure that his traditional recipe goes into every pie. And it will always be served with the same amount of passion and enthusiasm as it did back in 1973.
See, back then, it was just a regular group of guys looking to find a hangout spot where they can relax and plan for their future. And what started out as just a hangout spot, soon became a social club with great food. Naturally, the guys will get hungry with all that chatter, right?
So a kitchen was built inside the new social club and pizzas began being made. Soon enough, the entire neighborhood went flocking to their new hangout spot because of the delicious smell that was drawing them in. And the rest was history.
Their new hangout spot quickly became a pizza joint where everyone was flocking in from the neighborhood to buy a tasty pizza. And why wouldn’t they? It was made by a true Italian.
Fast forward a bit and this company began showing their love and support for their community. They weren’t just baking pizzas to sell. They were raising money, sponsoring, and creating other activities to benefit the people in the neighborhood. It’s all about providing families with the support they need. And I believe that is a truly fantastic way to give back to the community. And it says a lot about the way a company operates as well.
That could make this business a fantastic franchise opportunity. However, we can’t base that decision on these facts alone. So let’s get a little deeper into what this franchise opportunity offers and if it has the potential for success.
The Rise and Fall
A good business opportunity will continue to produce growth. And while every business will experience highs and lows, when you see a severe drop, you may begin to question whether or not the opportunity is good at all. And that’s the issue here with Godfather’s Pizza.
This company has been offering the franchise opportunity since 1974, so they are of course going to have their ups and downs. And they were honestly doing extremely well in 2010 with a total of 611 operating franchise locations. But six years later, in 2016, that number dropped to 434 franchise locations.
Resulting in a turnover rate of 13.37; which is getting pretty steep. But to understand exactly why this rate is on the higher end, you will have to ask the company questions regarding their lack of growth. It’s important to find out how many terminations, transfers, and non-renewals there has been over the years. Because there is a big difference between someone terminating their agreement and choosing not to renew their contract.
And while those numbers are all a bit concerning, at least you can take comfort in knowing that you are provided with training when you purchase a franchise. This way you know exactly how to run the business and how to properly train your own employees when that time comes.
But what are the requirements for this franchise opportunity? And how can you get started running this business? Let’s take a look.
Requirements and Fees
The requirements and cost of this franchise are pretty decent and honestly quite average. Some of the requirements are even low compared to what the competitors are asking for.
The initial franchise fee for this company is $25,000 with a total investment of anywhere from $113,600 to $814,000. This total investment price can vary due to a few different factors, including your location and inventory needs.
One thing that won’t change is the ongoing fees that you are responsible for paying. There is a royalty fee of 3% of your net sales or $125 per week; whichever is the greater amount. For non-traditional locations, the fee is either 3% of net sales or $60. Again, whichever is higher. The advertising fee, however, is sitting steadily at 2% of your net sales.
You are required to pay these fees for the entire length of your term agreement. For your initial term, you are signed into a contract for 5 years. And you will receive no refunds if you decide to cancel before the time is over.
You also do not receive the territorial rights to your franchise location. And that’s a downer. But the good news is that you can take advantage of finance options if you want to purchase this franchise but feel that you cannot afford it.
So there is definitely a mix of both good and bad with the requirements that this company expects from you. But I would say that there are definitely some good things to keep in mind. Considering these numbers are a lot lower than the average for this industry. And that’s a good sign.
From My Point
Each business opportunity that you look into is going to have both positives and negatives about the experience. There are certain things that you will want to consider, though, before you make any final decisions. Sure, the business sounds like a good one. But is it really?
As far as this company goes, I can honestly say that it looks to be a great company. And what they offer seems reasonable as well. However, my concern is the lack of growth. In actuality, there has been a serious decline in growth that worries me a bit.
But there are also some high points to look at here as well. Such as the low initial fee and low ongoing fees. Plus, they give you finance options, which not many companies will provide.
I’m not liking the fact that franchise owners receive none of the rights to their territory location. And honestly, for some entrepreneurs, that may be a deal breaker. But is it one for you? Only you can answer that question and determine if this is the right business choice for you. So what’s it going to be?
Concluding the Review
If you want a business that has been around for decades and has experienced a high amount of locations, then this could possibly be a great opportunity for you. However, there are quite a few things to consider before you sign on that dotted line.
Because sure, the restaurant is great and the history behind it is even better. But there still seems to be a little more risk to owning this franchise than there would normally be. Especially with the big drop in locations.
Overall, however, with this company, you seem to get a decent deal. And they have a reputation that you can add onto as the years pass. You have the chance to grow with them even more. And the price is right if you ask me.
So what will your decision be? If you feel like you are being pulled towards this franchise opportunity, then contact the company to have your additional questions answered. And get started on the process of applying for franchise ownership of a Godfather’s Pizza restaurant in your area.