Business Description

STRAW HAT PIZZA is a cooperative owned by a membership made up of individual store owners. Royalty fees are very low and more than offset by purchasing, insurance and marketing advantages. Stores operate under a detailed system, yet are allowed a great deal of flexibility. Store owners participate in the operation of the parent company.

Franchisor Background

Year Established:  1959

Franchising Since:  1969

Operating Units:
Franchised Units:	53	100%
Company-Owned Units:	0	0%
Total Operating Units:	53	100.0%
Minority Representation Units Owned by Minorities: African-American: 0 Asian-American: 4 Hispanic: 0 Native American: 0 Other: 27 Specific Minority   Program(s) in place: Equipment Financing, Financing Referrals, Lease Negotiations
Geographic Distribution: U.S.: 53 100% In 2 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 53 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. California	43
2. Nevada	2

Registered in Following Registration States: Washington

Financial Requirements

Investment:
Minimum Net Worth:	$300K
Cash Investment:	$100-200K
Total Investment:	$200-700K
Average Total Investment:	$475K
Fees:
Initial Franchise Fee:	$25K
Average Franchise Fee:	$25K
On-Going Royalty:	5%
Average Royalty:	5%
Advertising Fee:	3%

Average Number of Employees: 3-5 Full-time, 8-15 Part-time

Space Needs (in square footage): 4,000

Preferred Sites: Free-standing Building, Strip Center

Other Sites: Power Center

Encourage Conversions? Yes

Earnings Claims Provided?: No

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	4
General Business Experience:	4
Specific Industry Experience:	3
Formal Education:	3
Psychological Profile:	4
Personal Interview(s):	4
Terms of Contract
Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	5 Year(s)
Passive Ownership:	Allowed, But Discouraged
Area Development Agreements?	No
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	No
Size of Corporate Staff:	6
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Indirect
Marketing Support:
Co-Op Advertising:	Yes
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	Not Applicable
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Not Applicable
Inventory Control:	Included in Fees
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	At Additional Cost
800 Telephone Hotline:	Not Applicable
Training:
1. Vallejo, CA	4 Weeks
Expansion Plans
Projected New Units Over Next 12 months: 8 U.S.: Yes, West Canada: No Overseas: No	Request Franchisor Info   Submit an online form to receive information from Straw Hat Pizza.