RTP Ebook-V4 Final Editable

Table of Contents Who is Round Table Pizza? 3 The Round Table Pizza Story 6 What are the Startup Costs? 7 How Much Can I Make? 11 How Do We Differ From Competitors? 15 How Big is the Pizza Industry? 17 Flexible Restaurant Models to Choose From 19 What Territories are Available? 21 Marketing Strategy 22 Training and Support 23 Meet the Leadership Team 25 What are the Qualiﬁcations for a Round Table Pizza Franchisee? 27 A Day in the Life of a Franchisee 29 Why Do Customers Love Round Table? 30 What Do Franchisees Say About Round Table Pizza? 32 What Makes a Good Location? 34 FAQs 36 Next Steps 38 International Franchise Opportunities 39 Resales Offer More Investment Options to Franchisees 41 Franchise Information Report

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Who is Round Table Pizza? We bring families closer together with heritage, quality and innovation. Ask anyone who has grown up in a community with a Round Table Pizza, and they’ll regale you with stories of birthday parties, family pizza night and hanging out after the big game. Since the brand’s inception in the San Francisco Bay Area in 1959, Round Table has been committed to being “The Last Honest Pizza,” not only by providing a superior product but by dedicating ourselves to providing great service as both a restaurant and a neighbor in every community we’re located in.

As a brand, we have positioned ourselves above the fray of the $10 pizza wars. Round Table Pizza has maintained a consistent focus on quality, starting with the ingredients. Founder Bill Larson took time to craft a pizza recipe with integrity, and we still honor that today. We use only high-quality ingredients like real cheese concepts where food is an afterthought, and from-scratch dough. And even as we or adult-focused playgrounds. We own keep our traditions, we know innovation is the family-friendly positioning in the pizza what drives our momentum in a what franchise space. IBISWorld says is a $45 billion industry.

Customers love us because we’re the We bring families closer together through our commitment to heritage, quality and pizza they grew up with, the restaurant where they can go to escape another innovation. Round Table stays outside the night of cooking and dishes or to treat a playing field of $10 pizzas, kid-centric

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hard-working Scout troop for a job well In addition to being crazy about our pizza, done. Franchisees love us because ours our franchisees also have to meet a set is a proven concept with plenty of open of minimum qualifications. These territories, market recognition and qualifications apply to all new franchise accessible investments for everyone from candidates, regardless of whether they owner-operators to empire-builders. are seeking to develop new restaurants or acquire existing franchises. We put Who are we looking for? these standards in place to ensure Virtually all our franchise owners started everyone on the team is on the same out as brand fans. Of those who did page and to protect the integrity of our happen to be new to Round Table when brand. These standards ultimately ensure they discovered our franchise opportunity, the continued operational excellence and you better believe they became quick success of Round Table Pizza. Among converts. the characteristics we look for in a Round Table franchise owner:

• Foodservice industry experience as an owner/operator or manager with P&L responsibility • Demonstrated ability to lead and manage people • Strong leadership skills and a proven record of success in business • Business acumen and financial management skills • Passion for customer service • Minimum liquidity of $200,000 • Net worth of $500,000

Beyond those minimum qualifications, our franchisees’ backgrounds are varied. Some of them are empire builders, experienced franchisees from other concepts who have the talent and the skills to be successful multi-unit owners

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with Round Table. Some have been with us so long they’re now passing the baton to their children, who grew up watching their parents build success and now want to be part of that as well. We also see Baby Boomers who are looking to build something in the next 5-10 years to provide recurring income in their retirement.

We’re invested in franchisee’s success, because we’re franchisees, too. We have 450 restaurants open and under development, and 70 of those are company-owned.

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The Round Table Pizza Story Our quality pizza franchise has endured for over half a century

Pizza was a relatively new concept in For more than a half-century, we’ve 1950’s America, but Round Table Pizza become the go-to place for generations of founder Bill Larson was what you might families to celebrate birthdays and other call an early adopter. He was quick to see milestones. Round Table is a popular the potential and already saw ways it gathering spot for everything from Little could be made better, so in 1959 he League team wins to unwinding after opened up the first Round Table in Menlo work on Friday nights. Park, California, in the San Francisco Bay Area. We’ve spent nearly 60 years developing our time-honored systems and our From the beginning, Round Table was a recipes, a combination of the beloved place with an emphasis on quality, a sauce and dough recipes Larson started place where the whole family enjoyed with and newer items developed in coming, a place where kids could have conjunction with premier food fun while Mom and Dad kicked back with development company Mattson & a beer and waited for their pizza to bake. Company. We honor our family-centric Today, we are the premier West Coast brand mission, staying true to our past, pizza franchise with over 450 restaurants while forging ahead into the future as we open and under development in experiment and innovate with new California, Nevada, Oregon, Washington, restaurant technologies from online Arizona, Alaska and Hawaii. Just as it ordering to more sophisticated POS was in the beginning, our dough is still systems. Today we have more than 450 made from scratch and rolled fresh daily. franchises open and under development Our vegetables are hand-sliced. As we in the Western U.S., as well as 10 always have, we still use only high-quality franchises overseas, and we are meats and real cheeses in our three- continuing to grow. cheese blend of whole-milk mozzarella, smoked provolone and aged cheddar. And as always, our toppings go all the way to the edge of the crust.

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What are the Startup Costs? Startup costs for pizza franchise depending on the model

Each of our Round Table Pizza concepts offer different investment levels based on the square footage and the cost of development in your local real estate market. We include a range of typical investment costs in three of our concepts in Item 7 of the most recent version of the Franchise Disclosure Document (FDD). The investment range, which is required by the Federal Trade Commission, represents the lowest estimated cost as well as the highest estimated cost for each item listed.

For most investors, the real costs almost always fall somewhere in the middle. These startup costs are discussed further in our Franchise Disclosure Document, which you will receive upon completion of our application. Please review the three Item 7 charts below to get an idea of the initial investment for each of the three concepts included. Keep in mind that factors such as whether you choose to buy or lease the property can affect the final figures.

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DINE-IN ROUND TABLE PIZZA RESTAURANT Your Estimated Initial Investment

TYPE OF AMOUNT METHOD OF WHEN DUE TO WHOM EXPENDITURE PAYMENT PAYMENT IS TO BE MADE

Development Fee: (Note 1) Lump Sum At signing of Area Company Development Agreement Initial Franchise Fee: $25,000 (Note 50% deposit for Company 2) new franchisees; balance on signing Franchise Agreement Travel And Living $1,000-$2,250 As incurred As incurred Airlines, hotels and Expenses While restaurants Training: Real Estate And $150,000- As incurred As incurred Contractors, Improvements $400,000 architects (Note 3):

Equipment $175,000- As incurred As incurred Vendors (Note 3): $275,000 Point Of Sale $18,000- As incurred As incurred Vendors Equipment: $30,000 Opening Inventory/ $12,000- As incurred As incurred Vendors Small Wares: $15,000 Interior Décor $12,000- As incurred As incurred Vendors Package/Exterior $25,000 Signage:

Uniforms: $1,000-$2,000 As incurred As incurred Vendors Insurance $4,500-$7,000 Lump sum or cash Upon opening or Insurance (Note 4): installment monthly company Additional Funds-3 $25,000- As incurred As incurred Vendors, Months $50,000 suppliers, (Note 5): employees and others Total $423,500- (Note 6): $831,250

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DELIVERY AND CARRY-OUT UNITS Your Estimated Initial Investment TYPE OF AMOUNT METHOD OF WHEN DUE TO WHOM EXPENDITURE PAYMENT PAYMENT IS TO BE MADE

Development Fee (Note 1) Lump Sum At signing of Area Company Development Agreement Initial Franchise Fee $25,000 50% deposit for Company (Note 2) new franchisees; balance on signing Franchise Agreement Travel And Living $1,000-$2,250 As incurred As incurred Airlines, hotels and Expenses While restaurants Training

Real Estate And $75,000- As incurred As incurred Contractors, Improvements $150,000 architects (Note 3) Equipment $125,000- As incurred As incurred Vendors (Note 3) $175,000 Point Of Sale $15,000- As incurred As incurred Vendors Equipment $27,000 Opening Inventory/ $7,500- As incurred As incurred Vendors Small Wares $10,000

Interior Décor $7,500- As incurred As incurred Vendors Package/Exterior $15,000 Signage: Uniforms $1,000-$2,000 As incurred As incurred Vendors Insurance $4,300-$7,000 Lump sum or cash Upon opening or Insurance (Note 4) installment monthly company Additional Funds-6 $25,000- As incurred As incurred Vendors, Months $50,000 suppliers, (Note 5) employees and others

Total $286,300- (Note 6) $463,250

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ROUND TABLE CLUBHOUSE Your Estimated Initial Investment TYPE OF AMOUNT METHOD OF WHEN DUE TO WHOM EXPENDITURE PAYMENT PAYMENT IS TO BE MADE

Real Estate And $200,000- As incurred As incurred Contractors, Improvements $400,000 architects (Note 3) Equipment $200,000- As incurred As incurred Vendors (Note 3) $325,000 Point Of Sale $18,000- As incurred As incurred Vendors Equipment $35,000 Opening Inventory/ $12,000- As incurred As incurred Vendors Small Wares $15,000

Interior Décor $15,000- As incurred As incurred Vendors Package/Exterior $28,000 Signage

Uniforms $1,000-$2,000 As incurred As incurred Vendors Insurance $4,500-$7,000 Lump sum or cash Upon opening or Insurance (Note 4) installment monthly company Additional Funds-3 $25,000- As incurred As incurred Vendors, Months $50,000 suppliers, (Note 5) employees and others

Total $501,500- (Note 6) $889,250

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How Much Can I Make? Revenue potentials are strong, according to our Item 19 Round Table’s dine-in core concept restaurants generated average revenue of $1,025,448 in 2016, as reported by 393 locations that were open for at least 6 months in the year ending Dec. 31, 2016.

Franchisees who operate traditional dine-in locations can typically count on about a third of their revenue being generated by delivery, a third by take-out and a third by dine-in traffic. Other concepts, including non-traditional locations, delivery/take-out only locations and the larger Clubhouse locations, report different revenue averages. For more information from Item 19 in our 2017 Franchise Disclosure Document, please review the charts below. TRADITIONAL DINE-IN (See Note 1)

Annual Sales Afﬁliate Franchise Total Level-Range

$1,700,000 and above - 16 16

$1,500,000-$1,699,999 4 14 18

$1,300,000-$1,499,999 3 34 37

$1,100,000-$1,299,999 15 50 65

$900,000-$1,099,999 21 84 105

$700,000-$899,999 18 77 95

$500,000-$699,999 1 41 42

$300,000-$499,999 - 13 13

Below $300,000 - 2 2

Total Restaurants 62 331 393 in Sample

Average Sales $1,041,103.00 $1,022,727.00 $1,025,448.00

High Annual Sales $1,666,875.00 $2,965,970.00 $2,965,970.00

Low Annual Sales $609,783.00 $262,969.00 $262,969.00

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NON-TRADITIONAL (See Note 2)

Annual Sales Afﬁliate Franchise Total Level-Range

$1,700,000 and above - 1 1

$1,500,000-$1,699,999 - - -

$1,300,000-$1,499,999 - 1 1

$1,100,000-$1,299,999 1 - 1

$900,000-$1,099,999 - 1 1

$700,000-$899,999 - - -

$500,000-$699,999 - 2 2

$300,000-$499,999 - - -

Below $300,000 - 2 2

Total Restaurants 1 7 8 in Sample

Average Sales $1,101,418.00 $997,718.00 $1,010,680.00

High Annual Sales $1,101,418.00 $3,309,285.00 $3,309,285.00

Low Annual Sales $1,101,418.00 $98,732.00 $98,732.00

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DELIVERY/CARRY-OUT UNITS (See Note 3) Annual Sales Afﬁliate Franchise Total Level-Range

$1,700,000 and above - - -

$1,500,000-$1,699,999 - - -

$1,300,000-$1,499,999 - - -

$1,100,000-$1,299,999 - - -

$900,000-$1,099,999 - - -

$700,000-$899,999 - 3 3

$500,000-$699,999 - 2 2

$300,000-$499,999 - - -

Below $300,000 - - -

Total Restaurants 5 5 in Sample

Average Sales $0.00 $721,243.00 $721,243.00

High Annual Sales $0.00 $815,898.00 $815,898.00

Low Annual Sales $0.00 $606,933.00 $606,933.00

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CLUBHOUSE (See Note 4) Annual Sales Afﬁliate Franchise Total Level-Range

$1,700,000 and above 1 2 3

$1,500,000-$1,699,999 1 2 3

$1,300,000-$1,499,999 2 4 6

$1,100,000-$1,299,999 1 2 3

$900,000-$1,099,999 - - -

$700,000-$899,999 - - -

$500,000-$699,999 - - -

$300,000-$499,999 - - -

Below $300,000 - - -

Total Restaurants 5 10 15 in Sample

Average Sales $1,439,781.00 $1,522,284.00 $1,494,783.00

High Annual Sales $1,736,151.00 $2,098,292.00 $2,098,292

Low Annual Sales $1,136,326.00 $1,286,052.00 $1,136,326.00

The sales levels, sales ranges and average sales shown above reflect the experience of certain Round Table Pizza restaurants owned by franchisees and the Company’s affiliate and you should not rely on them as the actual or potential sales that you will reach. Your own results will likely differ from those presented here. The Company does not represent, warrant, promise, predict or guarantee that you can expect to attain these sales.

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How Do We Differ From Competitors? ‘The Last Honest Pizza’ sets itself apart with commitment to quality ingredients and franchisee support Decades’ worth of high customer purchase the best ingredients at the best satisfaction has made us a household prices. name in the West. Customers know they can trust us to provide an honest pizza Take a good look at the next Round Table made with high quality meats, real pizza you see, and you’ll realize there’s cheeses like whole-milk mozzarella, aged very little empty space. We spread the cheddar and smoked provolone, and toppings all the way to the edge, just one fresh hand-sliced vegetables. Our of many ways our product conveys proprietary dough is made from scratch integrity and delivers value to our daily in every restaurant, using a unique customers. system that ensures each bite is both How our business model is different for franchisees Of course, you have to have more than great food to become an iconic brand. You have to have a best-in-class business model that harnesses the collective genius of franchisees. We have cultivated a collaborative environment centered around supporting our franchisees in every way possible to help them succeed. It’s been that way since the crunchy and chewy. Our zesty tomato beginning, and in almost 60 years of sauce is made from California-grown business we have perfected our training tomatoes and 11 herbs and spices. We systems and operations. Round Table refuse to skimp on quality or on quantity. has proven to be sustainable because we We use our combined buying power to

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are so well-positioned in a $45 billion and open territory is a strong formula for industry that is itself growing. growth.

Protecting the bottom line Many of our franchisees have been with In the pizza industry, our “affordable us for decades, while others are relatively premium” category stands out among the new to our concept. Either way, you’ll 50% or so of businesses that are playing typically find they love the accessibility of in the deep-discount, under $10, delivery- our experienced leadership team and the only space. Affordable premium simply family feel they get from our collaborative means our product stands out as a high- culture. quality product with high demand: It’s an affordable, family-friendly luxury.

Growth opportunities With our brand recognition in our base market in California and our growing presence in expanding Western markets, our franchisees often start out with a built-in base of loyal customers, one that continues to grow. That makes it easier to scale up, since rising sales and high profit margins combined with brand maturity

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How Big is the Pizza Industry? See how Round Table franchises stand out in a crowded market The pizza industry generates $45 billion in annual sales, and is one of the biggest and most stable segments of the restaurant industry. 1 out of 8 people eat pizza on any given day, according to the USDA.

The ubiquity of demand is one of the reasons Round Table Pizza has been so successful in small towns, and has built a thriving business in areas where other franchise chains struggle to compete. Demand for pizza is universal. With 1-in-8 people eating pizza every day, it doesn’t How we’re set up to win take a massive population to sustain a The pizza industry has proven itself to be strong business. You just have to be sustainable for the long haul, and even as better than your pizza competitors, and new concepts join the market regularly, that’s where we excel. Round Table occupies a unique niche. We make it easier for entrepreneurs to As one of the players since 1959, Round win market share through: Table isn’t going anywhere. We have over 450 franchises open and under • Our commitment to a product with development in California and in the integrity Western states, and we plan to grow our • Our culture of franchisee support footprint by leveraging the loyalty of our • Our fun, relaxing, family-friendly existing customers to open new atmosphere restaurants in available territories. • Our strong marketing plans that can be tailored for every community

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Multi-unit expansion Balanced revenue streams opportunities Our business model tends to be a Paul Gill, who together with business balanced one — on average, our partner Behzad Cohan has 22 units in franchisees generate about a third of their California’s Central Valley and Southern revenues through delivery, a third through California either open or in development, carry-out and a third through dine-in knew from the get-go what he’d walked sales. The biggest players in the pizza into when he and Cohan were introduced segment have gone almost exclusively to the brand in 2013. The two were toward pick-up and delivery. Without the already experienced multi-unit ability to provide customers a guest franchisees, with a large number of experience, they are left to battle it out Yogurtland and Subway locations in Los with ever-more deeply discounted Angeles County. products. Round Table stays away from that game. We provide family-oriented “What we saw was a lot of opportunity community gathering spots and a menu with this brand,” Gill says. “My business that relies on higher quality ingredients, partner and I totally loved the food and not coupons and discounts, to grow our we felt they had a good customer and fan base. model. This type of family atmosphere is just not out there as much anymore. It’s a place where kids and families can come in and enjoy a meal together. They can come in and hang out after a ball game; moms and dads can watch sports on TV while kids play video games. We felt this type of model was needed, especially in smaller markets and towns.”

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Flexible Restaurant Models to Choose From From our core dine-in concept to our expansive Clubhouse, Round Table can accommodate many site selection options

One advantage of franchising is having systems, processes and a winning Round Table Pizza, however, offers formula in place. If followed properly, it flexibility in the size and location of our can be a roadmap to success. One place concepts with a number of different where some franchisors find roadblocks, models to choose from. This allows however, is in finding the right site for franchisees to make the most out of their concept. If the requirements are too whatever the real estate market is in their limiting, franchisees can struggle to community. expand even into spaces surrounded by great demographics, because the available square footage doesn’t match requirements.

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crowds and generate more revenue for The Round Table models the owners. The initial investment for our largest concept, which runs about 4,200 Delivery and carry-out only: Perfect for to 6,500 square feet, is $501,500 to urban areas, the omission of our $889,250.* traditional dining, party room and arcade

spaces allows for a streamlined operation *Costs can vary depending on the size of the optimized for delivery and carry-out concept and other variables. All figures are from revenue. The typical square footage is our 2017 Franchise Disclosure Document. 800-1,400, and the average startup costs range from $286,300 to $463,250.*

Traditional Dine-in concept: Our traditional Round Table dine-in restaurant is great in large communities and small and includes a large dining room and an arcade area for the kids. Our core concept typically includes a salad bar and lunch buffet as well as pasta and artisan flatbreads. Our banquet rooms accommodate a variety of parties and social gatherings, and we also serve a selection of wines and local craft beers. It usually varies in size from 2,400-4,000 square feet square feet and costs on average $423,500 to $831,250.*

Clubhouse: We amped up the volume on our traditional dine-in concept featuring an expanded menu with burgers and appetizers, a pub area with local craft beers on tap, a large arcade, banquet rooms for parties and social gatherings and big screen TV’s throughout. The Clubhouse has a more casual dining feel and has the capacity to serve larger

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What Territories are Available? Round Table growth is taking off in the West “The biggest opportunities for growth right now in the Round Table system are in Southern California and in the Pacific Northwest,” says John Dyer, Director of Franchise Development and Real Estate. “For the right operator looking for a significant development opportunity, there are opportunities for expansion in Salt Lake City as well as Phoenix and Tucson in the Arizona market.”

Domestically, Round Table is primarily offering growth opportunities west of the Rockies. We have numerous locations in California, but there are still opportunities for expansion in Southern and Central California. We are also targeting Arizona, Colorado, Hawaii, Nevada, Oregon, Utah, Washington, Idaho, and Alaska for expansion. We have resale opportunities from time to time as franchisees retire or make other life changes.

Internationally, we have 10 locations in 5 countries, and there are multiple opportunities to build franchises overseas.

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Marketing Strategy Round Table uses a variety of marketing tools to reach new and existing customers

Round Table is very well known in many Geo-targeting: We use geo-targeting of our markets, having been operating in technology to promote special deals and California since 1959. Kids that grew up discounts using regionally specific loyalty with Round Table Pizza are now grown programs. with kids of their own, and they bring them back to share the same Digital/social media: We focus on experiences. We keep our brand visible relationship building in our communities with TV spots in many of our markets and to help increase customer loyalty as well employ a variety of other marketing as promote local deals. techniques to reach customers in all markets. Local store marketing Round Table also provides support for Generating buzz non-standardized requests that run the Round Table uses a variety of tools to gamut from a specific POP for a local promote our brand in conjunction with function, loyalty programs and local franchisees. partnerships within a local community to outreach programs and athletic or Electronic/print media: An advertising academic team sponsorships. fund is used to promote Round Table on TV and radio in our most heavily saturated markets such as the Bay Area. We also employ outdoor advertising as well as print media and coupons.

Local store marketing: The Round Table Pizza toolkit includes point of purchase advertising, direct mail and local team sponsorships.

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Training and Support Round Table franchisees can expect extensive training and ongoing support Judging the quality of training and teach your crew of employees how to support is critical when evaluating make the product, how to handle franchise opportunities. Are the leaders customer service needs, how to clean accessible? Do they lead you through and how to conduct the day-to-day every step you need before grand operations. Franchisees can expect to opening? Do they provide sufficient practice their new skills in one of our marketing support and business restaurants for several weeks. Upon the coaching? opening of your new Round Table, our team will support you by helping set up Sometimes, silence tells you everything your restaurant and train your new you need to know. For instance, when employees, among other things. you contact a franchisee or someone at headquarters, do they return your call or “It’s important to learn the basics of the email promptly? A swift reply says a lot product, franchisees will learn how to about the health and commitment of an make the dough, how to mix the sauce, organization. how to set up the salad bar, how to do basic supply ordering. It’s important to At Round Table, we pride ourselves on understand all of the details so they can our accessibility, our exhaustive training, be fully engaged. and our ongoing support. Here’s what you can expect: For multi-unit owners We provide appropriate levels of support Before your grand opening and training for our multi-unit franchisees Once you sign your franchise agreement, as well. We have special courses for you and your manager will enroll in multi- multi-unit operators where franchisees faceted training courses both in-person learn how to have 5 restaurants at one and online. We’ll teach you every aspect time and what it takes to delegate, of operating a Round Table Pizza, from supervise and develop talent so rolling the dough to answering the managers can operate that restaurant phones. You’ll be provided with checklists without the owner being there all the time. and video training modules to help you

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Ongoing support When we conduct our annual franchisee We’ve been in business for nearly 60 satisfaction survey, the audit is always years, and we’ve created superior highlighted as something that is valued. systems that, when followed, can lead to With our culture of open communications, a win-win. One part of our system is an operational excellence and a commitment annual 200-point audit, which examines to making sure you and your crew are everything in your operation from food well-trained in the most important aspects safety to customer service. The audit is of running a Round Table Pizza, we designed to analyze day-to-day ensure everyone is on the same page to operations, and provide a diagnostic tool achieve success. your Regional Business Managers can use to work with you to find ways to tweak your business to maximize success.

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Meet the Leadership Team

Round Table executive team has more than 300 years of combined restaurant experience, still accessible to every franchisee

Global Franchise Group® (GFG), the strategic brand management company and franchisor of Great American Cookies®, Hot Dog on a Stick®, Pretzelmaker®, and Marble Slab Creamery®/MaggieMoo’s Ice Cream & Treatery® announced that it has acquired the Round Table Pizza® brand and all of its afﬁliated concepts (Round Table Pizza, Round Table Clubhouse and Round Table Pizza Wings Brew).

M. CHRISTOPHER DULL President & CEO

LEWIS R. LOEB Chief Financial Ofﬁcer

JENN JOHNSTON Chief Marketing & Operations Ofﬁcer

TIM LINDERMAN Chief Development Ofﬁcer

GREGG FLEURY Senior Vice President of Brand Operations, Round Table Pizza

DUSTIN THOMPSON Director of Franchise Marketing

JOHN DYER Director of Franchise Development & Real Estate

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MARY COOTS Franchise Development Manager

DONNA PILE Franchise Development Manager & Renewals and Transfers

KIM ROGERS Senior Manager of Franchise Sales

roundtablepizzafranchise.com !26 What are the Qualifications for a Round Table Pizza Franchisee? Our franchisees believe passionately in our brand and our commitment to quality and customer service Round Table franchisees come from so they already understood the Round many different backgrounds, but they all Table appeal. The ideal franchise have one thing in common: They believe candidate has entrepreneurial in our brand and everything it stands for. experience, as well as the passion to Most of our franchise owners were fans deliver every day on our commitment to before they bought their own franchise, quality and customer service.

It’s no surprise that most of our franchise owners, from owner-operators who grew up on the West Coast to large multi-unit owners who didn’t learn about Round Table until they were grown, started out as brand fans. Even those who didn’t grow up with Round Table pizza became quickly enamored when they first tried it.

Our minimum qualifications apply to all new franchise candidates. It’s important to to protect the integrity of our brand and ensure that as we continue to grow, we will maintain our high standards for quality and operational excellence. These standards are in place to perpetuate the continued success of Round Table Pizza and all our franchisees. Among the characteristics we look for in a Round Table franchise owner:

We’re franchisees, too Global Franchise Group is invested in franchisee’s success, because we’re franchisees, too. We have 450 restaurants open and under development in the Western U.S., and 70 of those are company-owned. We understand the importance of passion and attention to detail, from making sure every pizza is perfect to being concerned about the cleanliness of your store to hiring people who love customer service. We understand because we’re out there running franchises just like you are.

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A Day in the Life of a Franchisee The details may differ, but owning a Round Table franchise should be fun Ask five Round Table franchisees what a wealth of people they can turn to for typical day is like in the life of a Round advice about management structures and Table franchise owner, and you’ll most how to build the right team as an likely get five different answers. The most operation grows. Franchise partners, common response, in fact, is, “There’s no whether involved in one unit or several, such thing as a typical day!” divvy up duties according to their strengths. And depending on whether The restaurant industry is dynamic, and franchisees have general managers, area franchisees spend much of their time managers or prefer to interact with their supporting their managers and team front-line employees one-on-one as much members to ensure that goals are being as possible, their day-to-day details vary met and operations are running smoothly. a lot.

An owner/operator with one or two units will find themselves doing a lot more hands-on work in the restaurant. A multi- Two things are unit investor with several units will layer in a management structure to oversee certain: individual stores. One of the great things Owning a pizza about Round Table Pizza is the range of experience that exists within the system, franchise is a lot of which provides new franchisees with a hard work. And it’s also a lot of fun.

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Why Do Customers Love Round Table? How ‘The Last Honest Pizza’ generates raving brand fans We strive to make our guests happy, whether they’re dining in with the kids, grabbing take-out on a Friday night or ordering delivery.

Customers who do stop in love our selection of local craft beers and the arcade area where they can watch the kids play while they kick back and relax over dinner. We’re a gathering place for I am a bit biased, as I grew up getting celebrations large and small, and that has Round Table delivery in La Canada… and helped Round Table grow over the years quite frequently. Of all the pizza chains, to more than 450 locations. Here what Round Table has stood above the rest, customers themselves have to say about and truly has withstood the test of time. why they love Round Table. All the other joints make you feel funky afterwards… This location has ALWAYS From Yelp: been consistent with getting our orders My favorite pizza joint in Burbank. The right, making a quality pizza, cutting the ingredients are fresh and toppings are thing well, and accepting our coupons always plentiful. The taste is always and giving us the best deal possible. The consistent. I think it is cheese and pizzas are tasty, quality, and while they pepperoni that they use that sets them are pricier than the other chains, you get apart from other pizza joints. My favorite what you pay for! is the garlic supreme. If you’re ever sitting —Dominic P., North Hollywood, California at home at can’t decide on where to order pizza, order from Round Table because I grew up eating this pizza. I have eaten you can’t go wrong. pizza all over the US and the world. And I —Eli K., Los Angeles always want to come back here. Yeah, that’s nostalgia. But this is also just damn good pizza… I have never ever had a

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bad pizza from here. And I must have LOADED with bacon, sausage, ham, and ordered thousands—yes, thousands— topped with green onions and a creamy from this place since I was a kid. Their garlic sauce. Doesn’t it make your mouth slogan is cheesy … but I guess it’s sort of water? Toppings kept tumbling off my true: It is the last honest pizza. pizza — cheese was melting down the —George J., Portland, Oregon sides as I grabbed a slice — it was glorious. I came in here last Friday for a last —Rachel W., Honolulu, Hawaii minute order for my little brother. I came in about 20 minutes to closing and the girl Love Round Table Pizza! Been a fan for up front, Nicole, was so understanding years, so no matter where I’m at I locate and helpful! She got my order efficiently one. However I only ever order the Meat and was so nice! She made me feel Marvel Special! Why mess with welcomed even though I was one of their perfection…. It’s got the perfect amount last customers. The pizza was meat , cheese & grease. And whatever outstanding and the customer service spice used in the sauce is outstanding in was incredible! Will be coming back here flavor and zestiness. Go order ASAP! again! —Frank B., Seattle —Rachel C., Folsom, California From Facebook: I think Round Table Pizza has the best Round Table has always been a favorite. pizza I’ve ever tasted in Hawaii. And I There is nothing like a Round Table pizza love pizza. I have a lot of good memories and I crave it often. As a family we love of my parents taking my brother and I this location. The kids play in the game down into Waikiki for special occasions, room while we can watch the game one and this joint was always on our list. You of their many televisions. Love Round know how some pizza places skimp on Table! the cheese? Well, don’t expect that here. —Bill A., Las Vegas They load that sucker up. Whether you’re creating your own pizza or ordering one Great pizza. Wonderful owners and staff. of their gourmet creations, you’ll see that A business ( family) that really believes in they don’t skimp on anything here… Let giving back to the community. Thanks me tell you, these pizzas are worth the Round Table Pizza! price of admission — they’re not your —Stephen M., Spokane, Washington typical $10 slice of cardboard. Ours was

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What Do Franchisees Say About Round Table Pizza? Round Table franchisees reveal what they really think about our brand tired of it. I still love it, and I still bring You can tell a lot about a brand by its pizza home at least once a week. I really franchisees. Here are a few comments like our product. from some of our franchise owners who —Ali Khajavipour, San Diego were asked what they liked about Round Table and what makes this There’s flexibility to make my brand stand out. own decisions and either test them or try to prove them There’s a sense of out. If they work, there’s a optimism among the personal and financial leadership team that impact. There’s security in carries a long way. having a salary with a They make it easy to corporation but there’s believe in them, their tremendous upside in being sense of clarity, their an owner and having commitment and their direction. They’re autonomy to make more money. People open to testing new things; they continue and numbers are exciting to me. As a to work on technology and try new corporate person you have to keep products to enhance the pizza. They’re people at arm’s length. As an owner you there for us as franchisees. They are very can get in there. There’s a different feel to authentic genuine people who want us to that, and an excitement when ideas prove succeed. out. —Paul Gill, Los Angeles —Mike Osogwin, Tustin, California

I love to make pizza all day long. My The great thing is that pizza is not going personal favorite on the menu is still the away. Round Table has quality King Arthur Supreme. I haven’t gotten ingredients and a solid reputation. I would

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say come and have a taste for yourself It’s more about the experience Round and you can see the difference. I was a Table has provided over the years of customer first, and I became a being a community gathering place, like franchisee. the way there used to be really that sense —Gundeep Sethi, San Francisco Bay of a neighborhood pizza restaurant. We Area, California try to make it fun. Hopefully if your employees enjoy what they’re doing, they make it a fun environment. We really fill a niche for families with —Paul Barbano, Seattle young kids, with banquet rooms and games. And the younger generation can There’s always going to be a customer come in and sit at the bar. I don’t know of for a premium product if you execute it any other franchise competition. well. As an example, the most common —Olga Lundgren, Seattle comment I hear is, “oh yeah, your pizza’s so great!” as I have in the last 15 years opposed to, “It’s a been pre-approved with 8 great deal.” I’d different franchise rather be concepts. Every time I Nordstrom’s than went to ink something, I Penny’s. kept asking myself, why —Lance reinvent the wheel? If I Hungerford, can make my money back Tacoma, in 3 or 4 years — and Washington sometimes I’d make my money back in one year — I’d be stupid to invest in something else. It didn’t make sense to go into another concept with less volume and risk not making my money back in 3 years. I couldn’t find something that made my money back faster. —Ali Kerachi, San Francisco Bay Area

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What Makes a Good Location? The Round Table franchise team will help guide you through all aspects of site selection Location, location, location. It’s long been Delivery and carry-out only: A touted as the most important concept in streamlined operation optimized for real estate, and it certainly holds true delivery and carry-out revenue. Typical when you’re considering where to locate square footage is 800-1,400 square feet. your business. Luckily, you don’t have to navigate the process of site-selection Traditional dine-in concept: Our alone, because our real estate experts traditional Round Table dine-in restaurant are there to guide you every step of the includes a dining room, a party room and way. an arcade area for the kids depending on the size. It usually varies in size from Whether a new franchisee is looking to 2,400-4,000 square feet square feet. build from the ground up or they’ve purchased an existing Round Table Pizza Clubhouse: Bigger than our traditional location, we have a set of criteria that core dine-in concept, the Clubhouse helps establish the best possible location features a larger dining room, a pub area, for whatever market they’ve identified. more meeting space and party rooms, a bigger arcade and an expanded menu. Round Table has created an extensive Clubhouses generally run from 4,200 to network of expert brokers in each of the 6,500 square feet. markets we operate in. These brokers have experience and knowledge Regardless of the type of unit we are regarding Round Table site criteria, we planning for, we are still looking for the rely on that network to search for the right demographics for a Round Table most appropriate sites for Round Table in Pizza restaurant.. “We look at household their particular markets. counts, income, number of families and children,” says John Dyer, Director of Different models, similar site Franchise Development and Real Estate. needs “We’re also looking for a median household income that allows families to We have multiple restaurant options with buy “the last honest pizza” on a regular varying square footage needs, including: basis.

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Site development Dyer works with Round Table’s broker Most of our franchise owners lease their network to identify the sites that have locations, and because of that, Round proven to work best for us. Primarily we Table’s support during the lease seek out shopping centers anchored by negotiation process can be very helpful. big-box retail stores like Target, The Our broker is usually familiar with market Home Depot, Lowe’s and … We prefer rents and provides valuable insight. Your endcap locations but Round Table also prime location is in our best interest, so works with inline locations when we make sure all the right boxes are necessary. There are some freestanding checked so you can get up and running building sites, but those are less as quickly as possible. common. Making sites work “Once the franchisee has identified a Our target characteristics define the target market, site-selection is a collective preferred location for a Round Table effort between the expert broker we have Pizza franchise, but of course there are contracted with in that area and myself, always exceptions to the rule. and of course we want to include the franchisee in that process as well,” Dyer “We have some locations that are in says. smaller towns, for instance, that have smaller populations than we traditionally The other thing we’re looking for in a look for but have been very successful prime location is balance. We want to locations,” Dyer says. “These aren’t hard make sure the right location has and fast rules, although generally abundant parking, visibility from the main speaking they are important, but there thoroughfare and a good potential for are so many variables involved in every lunch, dinner and dine-in traffic. site. We work with our franchisees to find the location that will perform the best in Lease negotiations their particular market.” Franchisees who are looking to operate within a market they’re familiar with tend to have very important insights. Sometimes they know more about the trade area than anyone, so it’s important to include them in the process.

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FAQs Answers to some of Round Table franchise’s most frequently-asked questions How long has Round Table Pizza been • Business acumen and financial in business? The first Round Table management skills Pizza opened in 1959 in Menlo Park, • Customer service skills California, and the company began • Financial qualifications franchising in 1962. What are the financial requirements? How much does it cost to invest in Franchise candidates need to have a Round Table Pizza? Our startup costs minimum of $200,000 in liquid assets and range from $423,500 to $831,250 for a a minimum net worth of $500,000. These traditional dine-in concept. Costs can qualifications apply to all new franchise vary depending on the size of the concept candidates, regardless of whether they and other variables. A smaller delivery/ are seeking to develop new restaurants carry-out only model ranges from or acquire existing franchises $286,300 to $463,250, and the initial investment for our largest concept, the How much money can I make? Round Clubhouse model is $501,500 to Table Pizza does provide financial $889,250. All figures are from our 2017 performance representations in our FDD Franchise Disclosure Document. (Item 19). However, restaurant profitability varies and is dependent on a What qualifications are necessary in significant number of factors including order to be considered as a Round local trade area, location, sales revenue, Table franchisee? Round Table operating expenses and the financial and considers a number of different factors in managerial capabilities of the franchisee. our franchise evaluation process. Among the most important are: How many Round Table Pizza • Foodservice industry experience as an franchises are there? We have nearly owner/operator or manager with P&L 450 locations open and under responsibility development, including 70 corporate- • Proven record of success in business owned restaurants, across the Western • Demonstrated ability to motivate and U.S., Alaska and Hawaii, including 10 lead people locations overseas.

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internationally and is interested in the How large is a typical Round Table? Round Table brand, we certainly would We have three main models: A smaller be interested in talking to you. All delivery/carry-out only model is designed international development agreements for smaller spaces totaling about require the implementation of a multi–unit 800-1,400 square feet. Our core model is development plan for an entire country or typically 2,400-4,000 square feet. Our region. Clubhouse model is the largest, averaging 4,200-6,500 square feet. How long does the new franchisee evaluation process normally take? If, Is there territory currently available for after your initial phone interview, both you new restaurant development? Yes, and Round Table determine that it makes Round Table has opportunities in both business sense to proceed to the “in–fill” territory and area development application stage, the evaluation process opportunities in California, the Northwest should take between 6 and 8 weeks. and Southwest regions.

Are there opportunities to purchase existing restaurants and if so, where? Yes, there are existing franchised Round Table restaurants that are for sale. This limited “resale” inventory is dynamic; it is made available, with permission from owners, to candidates who have been approved as new franchisees.

Does Round Table offer opportunities for international franchising? Yes; however, substantial international foodservice industry experience is a critical component of our franchisee evaluation criteria. If your company currently operates a successful, well– capitalized, multi–unit U.S. QSR or Casual Dining franchised concept

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Next Steps Here’s what happens after you fill out an online form Your first step toward becoming a Round Table franchise owner is to fill out our form online. You will immediately receive an email acknowledgement, and we will provide you with a link to our free downloadable franchise report.

You should expect a quick phone call from us soon afterward so we can introduce ourselves and learn a little more about you and your specific interests. From there, if we mutually decide to move to the next step, we will schedule a follow up face to face provide an application to fill out and interview with our Regional Business schedule a follow up call with one of our Manager and Franchise Sales Manager. Franchise Sales Managers to learn more about your specific objectives and have After the due-diligence process and in-depth conversations around the review of the FDD, you’ll be invited to opportunity and answer questions. attend Discovery Day at our Headquarters in Concord, California, Should you elect to complete and submit where you’ll get a chance to meet our a Franchise Application, you will be Leadership Team and is the final step in required to provide us with personal the franchise candidate evaluation financial information and associated process, after which a final decision on documentation. After review and your candidacy will be communicated to verification of your completed Application you. package, we will provide you a copy of our current Franchise Disclosure Typically, the evaluation process takes Document, the legal document that about 6-8 weeks after the initial phone defines the parameters of the franchisor- call. Excited to learn more? Just fill out franchisee relationship and outlines the the form, and we’ll be in touch as soon as obligations of both parties. We will also possible!

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International Franchise Opportunities With 10 locations in 5 countries overseas, Round Table Pizza is expanding across the globe When Los Angeles native Ali Kerachi first that desire for a better tasting pizza in all tried Round Table Pizza, he happened to those countries. We have a tighter control be living quite far from home. over the quality of our pizza,” says Mike “I didn’t know what Round Table was until Buck, Director of International I moved to Dubai,” says Kerachi, who Operations, “so we can serve “The Last today co-owns 21 Round Table Honest Pizza all over the world.” franchises within a 100-square-mile radius of Oakland, California. Having grown up in Southern California — which then was not as familiar with our brand as the Bay Area — Kerachi first tasted Round Table Pizza while in the Persian Gulf nation. “By the time I came back to California and moved to the Bay Area, I was a huge fan.”

As Kerachi can attest, we have proven that our pizza concept is popular with international consumers. Dubai is home to several of our overseas locations, Buck says although we allow our which include Bahrain and Mongolia, with international franchise partners to alter several more under development in the decor to assimilate better with the nations including Vietnam and Malaysia. local surrounding culture, our restaurants are clearly branded as Round Table “We’re relatively new internationally, in Pizza, and expats and tourists will the sense that Pizza Hut, Papa John’s definitely recognize the distinctive “Last and Domino’s already have significant Honest Pizza” taste. international pizza presences. However, operationally and quality-wise, they’re just We work with local flour vendors in our not as good. That’s where Round Table overseas locations, providing them with a has the competitive edge. We’re filling starter kit assembled by a blending

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company so they can replicate the dough International opportunity to reproduce our signature chewy- Round Table is available for franchise crunchy crust. “We have to get the opportunities internationally. In addition to foundation of our product right or it’s not the Middle East and Asia, we are Round Table,” Buck says. identifying opportunities in South and Central America. We prefer substantial Since Round Table uses sauce made international foodservice industry from California-grown tomatoes, we experience as part of our franchisee export tomato paste made from those evaluation criteria. Other experience may tomatoes along with our proprietary spice suffice if the right investor group is well- blend. With those foundational elements capitalized and committed to building a in place, we can work to accommodate foundation at our direction. local dietary customs, such as special halal menus, while keeping the Round If your firm is currently involved in the Table core menu in place. operation of successful U.S.-based QSR or casual dining franchise concepts internationally, we would love to have a conversation with you.

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Resales Offer More Investment Options to Franchisees Qualified candidates can take advantage of Round Table resales inventory

Round Table Pizza has plenty of room to expand and open new restaurants, but with nearly 60 years of history and hundreds of locations that have been in operation for decades, we also have resale opportunities from franchisees who are ready to retire or make another life change. Other financial considerations include: To make it easier for our current and future franchisees to connect, Round • Initial fees: $12,500 for initial Table maintains a resale inventory that is acquisition; $7,500 for additional made available with permission from acquisitions. existing owners. Candidates must meet • Ongoing fees: 8% of adjusted gross all of our franchisee criteria, purchase sales monthly (4% franchise fee and terms must be negotiated with the seller, 4% advertising fund fee) and additional investments for equipment • Contract term: Remaining term of and facility upgrades may be required by seller’s franchise agreement with Round Table. renewal options.

Location, facility condition, lease status This information is not intended as an offer to sell, or the and financial performance all vary. solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and Purchase price is negotiated between the sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, franchisee and buyer. Resale listings are Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you made available, with permission from are a resident of or want to locate a franchise in one of these owners, only to candidates approved as states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure new franchisees. requirements in your state. Franchise offerings are made by Franchise Disclosure Document only.

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