To simplify the language in
this offering circular "Pizza Factory" means Pizza Factory, Inc., the
Franchisor. "You" means the person, corporation, partnership or other
entity who/which buys the franchise. Pizza Factory is a California corporation
that was incorporated on June 3,1982. Pizza Factory does business in California as "Pizza Factory, Inc." You are referred to Exhibit I for information
regarding Pizza Factory'' s website. Our principal business is located at 49430
Road 426, Suite D, P.O. Box 989, Oakhurst, California, 93644. Pizza Factory is
affiliated with Wheeler & Willey, Inc., a California corporation doing
business as W&W Seasonings. W&W Seasonings'' principal place of business
is located at 49430 Road 426, Suite D, P.O. Box 989, Oakhurst, California 93644. Pizza Factory is also affiliated with DR&S Leasing, Inc., a California corporation. DR&S Leasing''s principal place of business is located at 49430
Road 426, Suite D, P.O. Box 989, Oakhurst, California, 93644.
Pizza Factory''s agents for service of process are set
out in Exhibit G of this circular.
Pizza Factory''s business is
the development and sale of franchises which are in the form of pizza
restaurants known as Pizza Factory. These restaurants serve pizza, pasta,
sandwiches, soft drinks, wine and beer. The food is prepared on the premises
and served according to Pizza Factory''s specifications and can either be
consumed on the premises (except for Pizza Factory Express units) or be taken
out. Franchises offered in California will be pizza restaurants known as Pizza
Factory.
You will have to compete with
other businesses and restaurants which serve prepared foods including other
businesses which sell food items and services similar to Pizza Factory''s such
as national chains including "Round Table", "Pizza Hut",
"Domino''s Pizza", "Little Caesar''s" as well as numerous
local chains. The restaurant business generally and the pizza restaurant
business specifically is highly competitive and is affected by variations in
the preferences of the public, population and traffic trends and patterns, and
local and national economic conditions, many of which are beyond the control of
either Pizza Factory or the franchisee. Success within the industry are
affected by numerous competitive factors including the quality and value of the
food products offered, physical plant presentation and maintenance,
advertising, service, name recognition, and location. You must comply with many
state and local regulations regarding the construction and operation of the
franchised business. All Pizza Factory restaurants are required to comply with
federal, state and local laws applicable to the operation and licensing of a
prepared food service outlet including approvals by local and state health
agencies. It is important that you become aware of such local and state regulations
and consider such prior to purchasing a franchise.
You are required to obtain a
license to sell beer and wine for consumption on site before you open your
Pizza Factory franchise. The availability, procedures and cost to obtain such a
license vary greatly depending upon the location of your Pizza Factory
franchise. Further, state and local laws governing the sale of alcohol vary
greatly including possible liability arising from or related to the sale and
consumption of alcohol.
There may be numerous other
laws that affect the operation of a commercial restaurant including federal,
state, and local agencies governing food preparation, service and sanitary
conditions, employee''s safety, regulations and restrictions, and other agencies
or laws which may govern and regulate the emissions of ozone, carbon monoxide
and other particulate matters, or otherwise regulate air quality inside or
around the perimeter of a business, such as limitations on the use of tobacco
products.
Except for when it operated a
single company-owned store during 2002-2003, Pizza Factory has never conducted
a business of the type to be operated by you. However, the principal officers
and shareholders of Pizza Factory have been in the business of operating pizza
and pasta restaurants since 1980 including several Pizza Factory restaurants
which they now operate. Pizza Factory has offered franchises for Pizza Factory
restaurants since 1985. Pizza Factory has never offered franchises in any other
line of business and Pizza Factory has no predecessors. Pizza Factory is
involved in no other line of business other than selling Pizza Factory
franchises and supervising and assisting owners of Pizza Factory franchises.
