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Straw Hat Pizza

Pizza

Background

Founded: 1959 Franchising since: 1969
Straw Hat Pizza was founded in 1969 in San Leandro, California. It began franchising that same year and has locations throughout the United States. It is based in San Ramon, California.

Called Straw Hat Cooperative Corp., the company is not a typical franchisor, but a cooperative made up of many independent pizza restaurants. Members pay royalties to the cooperative and in return, receive marketing materials, better deals with suppliers, and ingredients and packaging manufactured by the cooperative.

18 Crow Canyon Ct., #270
San Ramon, California 94583
Phone:
(925)837-3400

Franchisee Association
Straw Hat Cooperative Corp.

Franchisor is a privately-held company with 6 employee(s); 6 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 61 0 0 0
2008 53 0 0 0
2007 43 0 0 0
2006 45 0 0 0
2005 44 0 0 0

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, West, Washington, Wisconsin, West virginia, Wyoming
Worldwide

Exclusive territories available.

Special Programs
Straw Hat Pizza regularly participates in community fund-raisers, school lunch programs, youth team sponsorship and charity support.

Costs and Fees

Total investment: $210K-535K
Franchise fee: $25K
Ongoing royalty fee: 5%
Term of agreement: 10 years, renewable
Express/kiosk option available

Type of Financing Available
In-House Third Party
Franchise Fee Yes No
Startup Costs No Yes
Equipment No Yes
Inventory No Yes
Accounts Receivable No Yes
Payroll No No

Qualifications
Net worth requirement: $300K
Cash liquidity requirement: $100K
Business Experience:
  • Industry experience
  • General business experience
  • Marketing skills

Operations
  • 20% of all franchisees own more than one unit
  • Number of employees needed to run franchised unit: 20 - 20
  • Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

Training and Support

Training
  • At franchisee's location: 4 weeks

Ongoing Support
  • Newsletter
  • Meetings
  • Toll-free phone line
  • Grand opening
  • Internet
  • Security/safety procedures
  • Field operations/evaluations
  • Purchasing cooperatives

Marketing Support
  • Co-op advertising
  • Ad slicks
  • Regional advertising

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