Red Boy Pizza
Established in 1969, Red Boy Pizza began as a single, 90-square-foot location in San Francisco, California. Founders Peter and Kitty Forstner owned and operated the business for more than 35 years with food featuring only the freshest, finest ingredients. Today the foundation of each pizza remains the true San Francisco sourdough crust, the mother dough of which was originally brought from 1918. Red Boy Pizza’s sauce is produced from fresh, hand-picked, California tomatoes—never concentrate! The tradition of excellence continues to Red Boy Pizza’s wide selection of pasta dishes, made-to-order salads, sandwiches and specialty dishes.
Red Boy Pizza franchisees serve the best pizza in town, and offer their customers the flexibility of dine-in, take-out, free delivery and a warm, friendly atmosphere. Franchisees have the opportunity to participate in the incredibly lucrative pizza industry, which is growing at a phenomenal rate and currently valued at an annual rate of more than $30 billion per year. Red Boy Pizza welcomes franchisees with experience in food service or retail management and an entrepreneurial spirit.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
6 |
5 |
5 |
| | % Change | -- |
-16.7% |
0.0% |
| | Company-Owned |
1 |
3 |
3 |
| | % Change | -- |
200.0% |
0.0% |
| | Total |
7 |
8 |
8 |
| | % Change | -- |
14.3% |
0.0% |
| | Franchised as % of Total |
85.7% |
62.5% |
62.5% |
Investment Required
The initial investment fee for a Red Boy Pizza franchise is $15,000. Previous franchisees can purchase additional franchises for a discounted fee of $10,000.
Red Boy Pizza provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$15,000 |
$15,000 |
| |
Pre-Opening Fee |
$10,000 |
$10,000 |
| |
Leasehold Improvements |
$100,000 |
$175,000 |
| |
Furniture and Equipment |
$75,000 |
$100,000 |
| |
Initial Inventory |
$7,000 |
$10,000 |
| |
1st Month's Rent and Deposits |
$4,000 |
$9,000 |
| |
Advertising for Grand Opening |
$1,000 |
$1,000 |
| |
Working Capital |
$30,000 |
$40,000 |
| |
Total Initial Investment |
$242,000 |
$360,000 |
Ongoing Expenses
Red Boy Pizza franchise owners pay a weekly royalty fee equal to 5% of gross revenues, a quarterly local advertising fee of 1% of gross revenues, and a weekly network marketing fund fee of 1% of gross revenues.
What You Get—Training and Support
Red Boy Pizza provides owner and operators with thorough, formal training program at a corporate location. Employees are trained for one week at existing Red Boy Pizza locations. Training lasts for up to one week depending on a franchisee’s background, and covers topics including ordering and delivery, personnel management, operation of equipment, financial operation and accounting, preparation of pizza and other food, sanitation, oven maintenance and ordering supplies. Red Boy Pizza also advises and consults on site location, and provides a nonstructural floor plan for the planning, designing and construction of improvements for the Red Boy location.
Ongoing support includes periodic visits by a Red Boy Pizza field representative to provide consultation and advice on the growth of the business. Red Boy Pizza also provides seminars for updates on new management techniques.
Territory
Red Boy Pizza grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Hottest New Franchises publication.
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