Boss’ Pizza & Chicken Logo

Boss’ Pizza & Chicken

Boss’ Pizza Franchise, LLC
1-605-368-4796
4804 S. Minnesota Avenue, Sioux Falls, South Dakota 57108

Initial Investment Range

$137,200 to $538,500

Franchise Fee

$30,000 to $37,500

Boss’ Pizza Franchise, LLC offers individual unit franchises for the development and operation of a Boss’ Pizza & Chicken® restaurant, featuring broasted chicken, specialty pizzas, and other pub-style food, as well as alcoholic and non-alcoholic beverages.

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Boss’ Pizza & Chicken October 25, 2024 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
2
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The audited financial statements for Boss' Pizza Franchise, LLC (Boss' Pizza) present a mixed picture. While showing net income, the cash flow statement reveals that cash distributions to members in 2023 exceeded the net cash generated from operations. The company's positive cash flow was dependent on member contributions. A heavy reliance on franchise fees for revenue, rather than ongoing royalties from successful units, may suggest a potentially less stable, long-term financial model.

Potential Mitigations

  • A franchise accountant should conduct a deep analysis of the financial statements, focusing on cash flow, revenue sources, and the impact of member distributions.
  • Discuss the franchisor's capitalization and plans for reinvesting profits into the system with your financial advisor.
  • It is wise to ask your attorney about the potential implications of a franchisor heavily reliant on initial fees for its revenue.
Citations: Item 21, Exhibit A

High Franchisee Turnover

High Risk

Explanation

Item 20 data from 2023 raises concerns. One of the three franchised units at the start of the year ceased operations, representing a significant failure rate for that small cohort. Simultaneously, the franchisor's parent company dramatically reduced its own store count, closing two locations and selling three others to franchisees. This high rate of turnover and corporate divestment could indicate potential issues with the business model's profitability or sustainability for both franchisees and the parent operator.

Potential Mitigations

  • Contacting former franchisees, especially the one who ceased operations in 2023, is critical to understand their experience; your attorney can help frame questions.
  • A business advisor can help you question the franchisor about the reasons for the significant reduction in company-owned stores.
  • Your accountant should model worst-case scenarios based on the disclosed turnover rates to assess the financial risk to your investment.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

The system is growing its franchised unit count, which can be positive. However, this growth is happening while the franchisor's predecessor is simultaneously closing and selling off its own corporate stores. This pattern could suggest that the support infrastructure, which is based on the predecessor's experience, may be contracting or shifting its focus away from operations at a critical time for new franchisees who require robust support. The system is expanding while the experienced operator is shrinking.

Potential Mitigations

  • In discussions with your business advisor, press the franchisor for details on how they plan to scale support services as the number of franchisees increases.
  • It is important to ask current franchisees about the quality and timeliness of the support they currently receive.
  • Your accountant can review the financials to assess if spending on franchisee support is keeping pace with franchise sales growth.
Citations: Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

Boss' Pizza is an emerging franchise system, having only begun franchising in October 2021. The franchisor entity itself has no history of operating the restaurants, relying instead on the experience of its predecessor. New systems carry higher intrinsic risks, including underdeveloped support, unproven scalability, and minimal brand recognition. Your success is tied to a franchise model that has a very limited track record in the marketplace, which could make it a riskier venture.

Potential Mitigations

  • A thorough due diligence process, guided by your business advisor, is necessary to investigate the track record of the predecessor's company-owned stores.
  • Seeking legal counsel to negotiate more franchisee-favorable terms may be possible to offset the higher risk of joining a new system.
  • Speaking with the very first franchisees listed in Item 20 is essential to understand their experience with the developing system.
Citations: Item 1, Item 2

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The business concept of pizza and chicken restaurants has a long history of consumer demand and is not tied to a recent trend. However, you should still assess whether the brand's specific market niche and offerings have long-term appeal in your local area, as even established industries can have concepts that do not resonate with all consumer bases.

Potential Mitigations

  • Engaging a business advisor to conduct independent market research can help verify sustained local demand for this specific restaurant style.
  • It is valuable to review the franchisor's plans for menu innovation and concept evolution with your business advisor.
  • An accountant can help you model the financial resilience of the business against potential shifts in local dining trends.
Citations: Item 1

Inexperienced Management

High Risk

Explanation

The franchisor entity, Boss' Pizza, was formed in 2021 and has no direct experience operating restaurants. Its management team has experience from the predecessor company and other industries, but their experience in managing a franchise system specifically is limited. The success of a franchise system relies heavily on the franchisor's ability to provide support, training, and strategic guidance, which differs significantly from simply running a restaurant. This lack of direct franchising experience presents a risk.

Potential Mitigations

  • A business advisor can help you thoroughly vet the management team's specific experience in supporting a franchise network.
  • It is critical to ask the earliest franchisees about the quality of the franchise-specific support and systems they have received.
  • Your attorney should confirm if the franchisor has engaged any experienced franchise consultants to guide their development.
Citations: Item 1, Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. FDD Item 1 does not indicate that the franchisor is owned or controlled by a private equity firm. However, the franchise agreement likely contains clauses allowing the franchisor to sell the entire system to any buyer, including a private equity firm, without your consent. This could change the nature of your relationship in the future.

Potential Mitigations

  • Your attorney should review the assignment clause in the franchise agreement to understand what happens if the system is sold.
  • It is prudent to ask the franchisor about any long-term plans for selling the company.
  • A business advisor can help you understand the potential impacts of a future sale to a different type of owner.
Citations: Not applicable

Non-Disclosure of Parent Company

Medium Risk

Explanation

The FDD discloses a predecessor/affiliate, Boss' Pizza & Chicken, LLC, which is the entity with operational history and which owns the trademarks. While the franchisor entity, Boss' Pizza Franchise, LLC, provides its own audited financials, the financial health of the predecessor, which is the operational backbone and brand owner, is not provided. Without the predecessor's financials, a full assessment of the overall enterprise's stability is difficult.

Potential Mitigations

  • Your accountant should review the provided financials and note the dependency on the predecessor for brand and operational concepts.
  • It is important to ask the franchisor for financial statements of the predecessor entity, as it is material to the health of the brand.
  • Your attorney can advise on the risks associated with contracting with a newly formed franchising entity that does not itself own the core assets.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package, as the franchisor clearly discloses its relationship with its predecessor, Boss' Pizza & Chicken, LLC. The document explains that the predecessor created the concept in 2005, operates restaurants, and licenses the trademarks to the new franchisor entity. The history appears to be transparently presented, though this structure itself presents other risks.

Potential Mitigations

  • A review of the predecessor's history in Items 3 and 4 with your attorney is still a prudent step.
  • You can conduct independent online research on the predecessor entity to check for any negative press or customer complaints with the help of a business advisor.
  • It is wise to ask long-term employees or managers of the predecessor's locations about the company's history.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states that no litigation is required to be disclosed. This indicates a clean recent history regarding legal disputes with franchisees, suppliers, or regulators. This is a positive factor, although it does not guarantee future disputes will not arise.

Potential Mitigations

  • Your attorney can conduct an independent public records search to verify the absence of significant litigation.
  • It is still beneficial to ask current franchisees about their relationship with the franchisor and if they are aware of any informal disputes.
  • Understanding the dispute resolution process in Item 17 with your attorney remains important for any future issues.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
6
4
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
3
5
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
5
5
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
2
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
5
2
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
4
6
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
6
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.