Franchising with Red’s Savoy – FAQs

Why Red’s Savoy Pizza?

We’ve got raving fans that can’t stop talking about us and a pizza that has withstood the test of time. Since the 1960s we’ve been making great pizza and becoming a household name. Now is a great time to join the team!

Why Franchising?

Products and Logo.  The purchase of a Red’s Savoy Pizza franchise allows you access to the secret-recipe Savoy products that have made the Red’s Savoy name what it is today. You gain access to our unique menu items, such as sauerkraut and pickle pizzas, that perfectly complement our spicy sauce and thin-cracker crust. In addition, our franchisees get to operate under our signature red logo featuring the “Red’s Savoy Pizza” name and design.  This logo is recognized throughout the Midwest and beyond!

Support.  Red’s Savoy Pizza franchisees also gain operational support from the ground up. We deliver classroom and in-store training, as well as grand opening assistance to make sure your store gets off to a successful start. Throughout the operation of your business, we are here to respond to operational needs within the system, whether on an individual store basis or system-wide.

Opportunity!  The original Red’s Savoy Pizza location has operated at its original location on the east side of St. Paul, Minnesota for over five decades. Its recipes and business model have stood the test of time as pizza trends have come and gone. With this history, Red’s Savoy Pizza is poised for the future! Our franchises maintain this old-school timeless tradition, while taking advantage of modern opportunities for marketing, advertising, promotions, and growth. New franchisees in the Red’s Savoy Pizza system have the opportunity to take advantage of our plans for growth and expansion throughout the United States.

Fees and Costs

What is the initial franchise fee?  This fee is $25,000 for the first territory and $20,000 for additional territories. We also have Veteran’s program for current members of the US military, or veterans who have received an honorable discharge from a branch of the US military.

What about training fees?  When you purchase a Red’s Savoy Pizza franchise, we will provide our initial training program to up to 2 people at no additional cost to you. We will also assist you in the opening of your Red’s Savoy Pizza store, by sending a training team to your location for to assist you with opening your store. These programs are described in more detail below. Training may be reduced in certain circumstances, depending on your prior restaurant experience and experience with the Red’s Savoy Pizza franchise system.

What is the ongoing monthly royalty charge?  Currently 5% of gross revenue, plus a 2% advertising contribution (subject to cost of living adjustments) that goes to our Red’s Savoy Pizza Marketing Fund.

Business Terms

Where may I locate my Red’s Savoy Pizza store?  Your store may be located in any area that is not in a designated area for another store. Your location must be reviewed and approved by us.

Do I receive a designated territory?  We will grant you a designated territory around your Red’s Savoy Pizza store. As long as you are in compliance with your franchise agreement, we will not physically locate another Red’s Savoy Pizza store in your designated territory. This territory will vary depending on, among other factors, the density of population, local drive times, proximity to local businesses, and topographical features like freeways, lakes, rivers and land that naturally define contiguous areas. In most cases, if you are in a metropolitan area, the designated territory will include 30,000 to 40,000 rooftops, or if you are in a small town, the city limits of the town.

What is the term of the franchise? The franchise term is up for renewal every seven years.

What about area development?  We offer an area development program for those that are interested in opening more than one store. Your area development agreement will grant you a larger territory in which you will agree to open multiple Red’s Savoy Pizza stores on a development schedule. If you sign a development agreement for 2 stores, instead of an initial franchise fee, you will pay an initial development fee of $5,000. If you choose to open more than 2 stores, you will pay an initial development fee of $20,000 for each additional store.

Training and Support

What is the initial training program like?  All new franchisees participate in an initial training program offered at one of our Red’s Savoy Pizza locations in Minneapolis, Minnesota. We take our training program seriously – it is the first tool in your toolbox setting you up for success in your Red’s Savoy Pizza store! This training program is 3 weeks in duration, consisting of primarily on-the-job training, along with one day of classroom training. Our officers provide this training, along with experienced consultants and current franchisees that have extensive experience with the Red’s Savoy Pizza system.

We also have a grand opening training program, to assist you with opening your store and to help iron out opening day kinks. This team will assist in training your personnel for the opening of the restaurant and in methods of preparation and serving menu items. We will send an opening team to your store for one day several weeks before you open, and then for the 3 day period before and the 7 day period after your grand opening. You will pay the travel expenses and costs for this service, which will range from $3,000 to $6,000.

What other support can I expect?  After you sign a franchise agreement with us, you will attend the training program described above. As part of that training, we will provide you with a comprehensive Red’s Savoy Pizza Operations Manual that contains our operating standards, procedures, recipes, and guidelines. This will include specifications for equipment, supplies, insurance, signage, and inventory, as well as a prototype site design for your Red’s Savoy Pizza store. We will then assist you in choosing a location and site, and send our opening team to that site to ensure a smooth grand opening of your location!

On an ongoing basis, we will manage and administer the Red’s Savoy Pizza Marketing Fund, which is designed to promote the Red’s Savoy Pizza brand through the development of advertising materials and public relations campaigns.

Operational Questions

Who decides what prices I will charge for my menu items?  You do. However, we will provide a guide of suggested prices based on past experience, and based on the ingredient costs of the specified items, relative to acceptable margins and overall cost of goods sold.

Do I have to use specific vendors?  We do designate some vendors for franchisee purchases of supply. This helps us to maintain the uniformity of the taste of our menu items across locations, and ensure protection of our trade secret Savoy recipes.

Do I have to quit my present job?  Not necessarily. However, it is critical that an owner of the business be highly involved, to provide the necessary commitment to the success of the business. You should devote your full attention to managing your Red’s Savoy Pizza franchise or hire a capable manager with restaurant industry experience.

How are franchisees involved in the system?  In order to facilitate communication in the Red’s Savoy Pizza system, we formed a Franchisee Advisory Council that we consult with on a regular basis. The purpose of this council is to promote constructive, open and two-way communication between franchisees in the Red’s Savoy Pizza system and management, and to consider matters of mutual interest in a spirit of mutual respect and cooperation. Franchisees are elected to the Franchisee Advisory Council, and provide input on matters such as advertising and marketing, menu development, and store operations.