| The answers to the following frequently
asked questions will help you further evaluate our franchise opportunity
and make a fully informed decision concerning its benefits to you.
This information is not intended to replace the information
contained in our Franchise Offering Circular, which we will provide
to you at the time of your introductory meeting and which you should
thoroughly examine prior to entering into any agreement.
Q: Why pizza and what makes Mazzios
Italian Eatery so special?
A: The pizza and pasta categories has been two
of the fastest growing food service segments over the last 10 years.
The average American eats pizza or pasta two to three times a month.
Just over a third of the U.S. population eat pizza or pasta once a week
(source: National Eating Trends). The unique taste of our products,
along with our knowledge and experience in the foodservice industry,
has enabled us to develop an operating system and franchise opportunity
that are as carefully planned and harmonious as the ambiance in each
Mazzios Italian Eatery restaurant. Mazzios not only franchises
Mazzios restaurants, but also operates Mazzios restaurants.
This makes us a participating party in the ongoing develop-ment of the
concept. We believe in the long-term opportunities offered by the foodservice
industry and Mazzios.
Q: Do I need prior restaurant experience
to own a Mazzios franchise?
A: In most cases, the answer is yes.
Owner/Operators are preferred as a particular group. An exception is
if your general manager has restaurant experience and an equity interest.
Absentee ownership is highly discouraged and permissible in only exceptional
circumstances.
Q: How many Mazzios restaurants
may I operate?
A: Multi-unit ownership is encouraged but only
if a franchisee is on a sound operational and financial basis.
Q: How much is the initial franchise
fee?
A: The initial franchise fee for your first franchise
location is currently $20,000*, which is payable at the time the Franchise
Agreement is signed.
*Special Note: The initial franchise fee is subject
to change at any time.
Q: What additional fees are paid by Mazzios
franchisees?
A: The Franchise Agreement requires the monthly
payment of a royalty fee in the amount of 4% of net sales as well as
an ongoing advertising production fund fee equal to 1% of net sales.
Therefore, the total ongoing fees equal 5% of net sales.
Q: How long does my Franchise Agreement
last?
A: The initial Franchise Agreement is for a term
of fifteen (15) years, with an option to renew for additional five (5)
year periods.
Q: What are the financial requirements
for qualification to become a Mazzios franchisee?
A: A minimum "liquid" net worth of
$200,000 (exclusive of real estate). Your total net worth must exceed
$400,000. In addition to the financial criteria, applicants must meet
the following qualifications:
- You
must have substantial familiarity with the market proposed for development.
- You
must possess a sound reputation, integrity, and similar business values
as Mazzio's.
Q: Do you offer a finance program or
any type of financial assistance?
A: Mazzios does not provide any direct
financing.
Q: Does Mazzios provide potential
franchisees with an Earnings Claim Statement?
A: Yes. Our Franchise Offering Circular contains
Statements of Actual Sales and Earnings that reflect the
results of specific Company-owned Mazzios restaurants. (Important
Note: Future results of any franchise location are dependent upon a
number of variable factors that are significant. They include location,
competition, overall market conditions, utilities, fluctuations in food
costs, availability and cost of labor, cost of other operating expenses,
and the operator's expertise and dedication).
Q: How can I determine what geographic
area is available for franchising?
A: The availability of geographic areas changes.
It is not possible to indicate accurately in this material what specific
geographic areas are currently available. It is necessary for you to
list your geographic preference(s) and submit it to us. Upon review
of this information, we will communicate with you regarding specific
geographic areas in which you are interested. (Special Note: Mazzios
approves locations and sites. We may suggest development in certain
areas and we may veto areas we feel are not feasible).
Q: Can an existing building be remodeled?
A: Yes, subject to the approval of Mazzios
. The typical building for conversion will need to be in the 2,400 -
3,500 square foot range with on-site parking for 35+ vehicles.
Q: How do I select a location?
A: Once the Franchise Agreement has been executed
and all applicable fees paid, we will schedule a site trip to your area
to discuss the various options and approve a location. Additionally,
demographic reports are furnished by Mazzio's to provide a more thorough
location analysis.
Q: Who is responsible for each restaurant's
advertising?
A: Local restaurant marketing is the financial
responsibility of the franchisee. To help in the advertising effort,
we have created an advertising fund which is used to: (1) produce all
advertising materials, including the attractive point of purchase
materials for local use; (2) promote brand awareness; and (3) evaluate
the impact of marketing expenditures through research. Additionally,
cooperative advertising associations may be formed in any market. Our
ultimate goal is to have each Mazzios Italian Eatery restaurant
in a local market co-op advertising association.
Q: What types of advertising programs
are utilized by Mazzios?
A: The advertising used by Mazzios and
you may be in print, radio, television and/or outdoor advertising. The
coverage of media is on a local or regional basis. Mazzios is
a regional organization that does not purchase national spots. The primary
source of advertising materials is the in-house marketing department
of Mazzios. You may use your own advertising material when it
is approved by Mazzios. Each year, there is a Mazzio's marketing
conference and all Mazzio's franchisees are invited. Franchisees have
the opportunity to provide input on marketing programs for the following
year.
Q: Do I purchase food products and supplies
directly from Mazzios?
A: No. Mazzios has contracted with an independent
supplier to provide purchasing and weekly distribution of all food products,
paper products and operating supplies to Company and Franchise restaurants.
And the best news is... every location, company-owned or franchised,
benefits from the volume purchasing power of Mazzio's system-wide operations.
Mazzios reserves the right to approve all products, suppliers
and purveyors to ensure that quality standards are followed and maintained.
Q: Where do I purchase the equipment
package?
A: You may purchase the equipment from any of
the suppliers approved by Mazzio's.
Q: What is the nature of training provided
by Mazzios?
A: An 8-week training program at the Corporate
Headquarters in Tulsa, Oklahoma, is provided for you and your management
team -- consisting of three (3) people. This program has been designed
to cover vital areas of importance to your success as a franchise owner.
It covers the Operations Manual, library of training videos, methods
of inventory control, equipment maintenance, standards of quality, service
and cleanliness, personnel policies, effective training techniques,
operational techniques and advertising. Prior to opening your Mazzios
Italian Eatery restaurant, on-site training will be provided at Mazzios
expense.
Q: Does the owner need training?
A: Yes, even if the owner is not going to work
in the restaurant, he or she should complete the Mazzios two-week
Owner Training Program.
Q: Does Mazzio's provide any ongoing
training?
A: Yes, we offer various seminars throughout
the year with some of them being conducted at regional sites.
Q: What form of continuing operations
guidance will I receive?
A: We want you to have the advantage of our ongoing
research and development; therefore, you will be periodically updated
and kept current on all new products, suppliers, equipment, inventory
control, advertising and much more through weekly Managers Reports,
newsletters and regular direct contact from our staff. In addition,
you will be provided ongoing supervision and support from an experienced
Franchise Business Consultant through periodic visits to consult with
you and your management personnel on important aspects of your Mazzios
Italian Eatery restaurant operation. You may contact our staff whenever
you desire advice and you may exchange ideas and information with other
franchise owners.
Additionally, as a Mazzios Franchisee,
you will participate in a variety of events designed to hone your restaurant
management skills. Regularly scheduled meetings, seminars and other
participatory programs enable you to benefit from the experiences of
other Mazzios restaurant owners.
Q: How soon can I be in operation once
I have been awarded a franchise?
A: Securing a location is typically the determining
factor. Once a mutually agreed upon site has been secured, constructing
and supplying your new business for its opening generally takes 1220
weeks.
Q: Can I sell my Mazzios Italian
Eatery franchise?
A: In the event you desire to sell your Mazzios
Italian Eatery restaurant and the franchise rights pertaining to it,
you must first disclose the sales terms to Mazzios. We have a
right of first refusal to purchase your restaurant. In the event we
do not purchase your restaurant, you will be free to seek another buyer,
who must be approved by Mazzios.
Q: Who are the top executives at Mazzio's
Corporation?
A: They are individuals with years of experience
in the food business. The experience, continuity and depth of the Mazzios
management team constitutes one of our biggest strategic assets. Our
management team has worked together for many years, leading the company
to become a dominant force in the food service industry and building
long-term relationships with employees, customers, suppliers and existing
franchisees.
Q: Whats the next step if I am
interested in a Mazzios Italian Eatery Franchise?
A: Completely fill out and return the application.
If
your application is accepted, you will be invited for a one-day introductory
visit to Tulsa. At that time, you will receive a Uniform Franchise Offering
Circular (UFOC). Your meeting in Tulsa will include discussions with
key personnel from the Franchise Department of Mazzios and visits
to Mazzios Italian Eatery restaurants.
Once
you are formally approved as a franchisee, a Standard Franchise Agreement
will be sent to you along with an invoice for your initial franchise
fee.
You
will need to select a certain site for approval. You will be refunded
your franchise fee if Mazzios is unable to approve any of your
sites or the fee may be transferred to another approved city. |