- 2023 Franchise 500 Rank
#451 Ranked #425 last year
- Initial investment
$145K - $1.1M
- Units as of 2022
29 26.1% over 3 years
Straw Hat Pizza opened its doors in 1959, and now the company has over 20 locations in the southwestern part of the United States. Straw Hat Pizza strives to serve customers food that is wholesome and satisfying. They also try to make locations a fun and upbeat atmosphere where customers can eat and have fun.
Many locations feature an arcade room and big-screen TVs. These additions may help draw in families and provide everyone with entertainment.
Why You May Want To Start a Straw Hat Pizza Franchise
A Straw Hat Pizza franchisee does not need previous experience in the restaurant industry, though it may help with day-to-day operations. Franchisees with Straw Hat Pizza may need proven customer service skills and know-how to provide the best experience possible to customers. Franchisees should have good time management skills, proven leadership skills, and be willing to adapt.
Franchisees are expected to create a positive atmosphere in the restaurant for customers and the team they lead. However, you may be able to run your Straw Hat Pizza location as an absentee owner, potentially increasing your flexibility as a business owner.
Opening a Straw Hat Pizza franchise may offer a more predictable outcome than investing in a completely new brand that could struggle to thrive in an already crowded and competitive industry.
What Might Make a Straw Hat Pizza Franchise a Good Choice?
Straw Hat Pizza could offer franchisees more than one revenue stream. For example, Straw Hat Pizza may offer dine-in, pickup, delivery, online ordering, beer and wine, catering, a food truck, and a party room. The company also has vegan and gluten-free menu options for customers who need them. By utilizing these different services, franchisees may find themselves able to diversify revenue.
To be part of the Straw Hat Pizza team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How to Open a Straw Hat Pizza Franchise
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Straw Hat Pizza franchising team questions.
Potential franchisees may be invited to participate in a Straw Hat Pizza discovery day. The franchisee will tour one of the Straw Hat Pizza locations to see behind the scenes and get a feel for the company.
If awarded a franchise, franchisees will then take part in a multi-week training program before they open their Straw Hat Pizza location. During your first week of operation, Straw Hat Pizza will send staff to help train the new staff. Franchisees will be able to contact team members for additional support as needed.
About Straw Hat Pizza
- Franchising Since
- 1969 (2023-1969 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees in the following US states: Arizona, California, Nevada, Oregon
- # of Units
- 29 (as of 2022)
Information for Franchisees
Here's what you need to know if you're interested in opening a Straw Hat Pizza franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $145,000 - $1,077,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $5,000 off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Straw Hat Pizza has relationships with third-party sources which offer financing to cover the following: startup costs, equipment
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 110 hours
- Classroom Training
- 70 hours
- Ongoing Support
Purchasing Co-opsMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite Selection
- Marketing Support
Ad TemplatesRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail Marketing
Additional details about running this franchise.
- Is absentee ownership allowed?
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Straw Hat Pizza? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Straw Hat Pizza landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Straw Hat Pizza ranked on other franchise lists? Find out below.
Ranked #451 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
Ranked #10 in Pizza in 2022
Our annual list of the top restaurant and other food franchises, divided up by category, is the perfect place to start if you’re craving a food-based business opportunity.
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