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Boston's The Gourmet Pizza Restaurant & Sports Bar
How much does Boston's The Gourmet Pizza Restaurant & Sports Bar cost?
Initial Investment Range
$1,040,030 to $8,661,075
Franchise Fee
$85,000 to $259,050
Boston’s The Gourmet Pizza Restaurant & Sports Bar® restaurants feature gourmet pizza and pasta dishes, and a wide variety of mouth-watering entrees, appetizers, fresh salads, sides and desserts, specializing in serving family and friends in a full-service casual dining restaurant combined with an exciting sports bar featuring large flat screen TVs, drinks, and great food in a fun atmosphere.
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Boston's The Gourmet Pizza Restaurant & Sports Bar March 26, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 22, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor explicitly warns that its financial condition calls its ability to provide support into question. The 2024 audited financial statements in Exhibit B confirm this, showing a net loss of over $164,000 and a negative partners' capital (net worth) of over $458,000. The franchisor also made large capital distributions to partners while incurring losses, which could indicate a significant risk to its long-term stability and ability to support you.
Potential Mitigations
- A franchise accountant should thoroughly analyze the franchisor's financial statements, including the negative net worth and cash flow from operations.
- It is crucial for your attorney to investigate if any financial assurances, like a bond or escrow of initial fees, are required by state regulators.
- Discuss the franchisor's specific plans to address its financial condition and fund its support obligations with your business advisor.
High Franchisee Turnover
High Risk
Explanation
Item 20 data from 2023 indicates a very high annual turnover rate. Approximately 24% of the franchised outlets that started the year (5 of 21) either terminated or ceased operations. This level of turnover is a significant warning sign and could suggest systemic problems, franchisee dissatisfaction, or issues with profitability or support that may impact your potential for success.
Potential Mitigations
- Your business advisor should help you analyze the turnover data over the last three years to identify any persistent negative trends.
- It is essential to contact a significant number of former franchisees listed in Item 20 to understand the specific reasons for their departure.
- Your attorney can help you frame questions to the franchisor regarding the high rate of terminations and cessations.
Rapid System Growth
Low Risk
Explanation
This risk was not identified in the FDD Package. Rapid system growth can be a concern if a franchisor's support infrastructure cannot keep pace. This could strain resources for training, site selection, and ongoing assistance, potentially impacting the quality of support for all franchisees. An analysis of the franchisor's financial statements and system growth tables is necessary to assess this risk.
Potential Mitigations
- Engaging a business advisor to question the franchisor about their infrastructure and plans for scaling support services is a wise step.
- You should discuss the quality and responsiveness of franchisor support with a wide range of existing franchisees.
- An accountant's review of the franchisor's financial health in Item 21 can help determine if they have the resources to support their growth.
New/Unproven Franchise System
Low Risk
Explanation
This risk was not identified in the FDD Package. The franchisor has been operating and franchising for many years. For new systems, risks include an unproven business model, lack of brand recognition, and underdeveloped support systems, which can lead to higher failure rates. It's important to verify the operational history and experience of any emerging franchisor.
Potential Mitigations
- For any new franchise system, a business advisor can help you conduct extensive due diligence on the founders' industry and franchising experience.
- Speaking with the earliest franchisees about their experiences with a new system is crucial.
- A thorough review of a new franchisor's capitalization and business plan with an accountant is advisable.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD Package. The full-service restaurant and sports bar concept is well-established. A fad business is one tied to a fleeting trend, which can create significant risk when that trend fades. Evaluating a concept's long-term consumer demand and its ability to adapt beyond current trends is crucial for assessing its viability and your long-term investment.
Potential Mitigations
- A business advisor can help you research the long-term market demand for the product or service to gauge its sustainability.
- Evaluating the franchisor's stated plans for innovation and adaptation to market changes is a key due diligence step.
- Consider the business model's resilience to economic shifts and changing consumer tastes with your financial advisor.
Inexperienced Management
Medium Risk
Explanation
The FDD discloses that the company's President is scheduled to take a "temporary leave of absence," with an Interim President appointed. While other executives appear to have industry experience, this change at the highest level of leadership creates uncertainty. The transition and the temporary nature of the new leadership could potentially disrupt strategic direction and the quality of support you receive.
Potential Mitigations
- You should inquire directly about the reason for the President's leave and the long-term leadership plan with your business advisor.
- Contacting existing franchisees to gauge their confidence in the current and interim management team is recommended.
- Your attorney can help assess any potential instability this leadership change might signal for the franchise system.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD Package, as the franchisor appears to be privately held by family investment entities, not a private equity firm. When a franchisor is owned by a private equity firm, there may be a focus on short-term returns, which could lead to increased fees, reduced franchisee support, or a rapid resale of the entire system, creating uncertainty for franchisees.
Potential Mitigations
- A business advisor can help research a private equity firm's track record with other franchise systems it has owned.
- It is wise to discuss with existing franchisees any changes in culture, support, or fees since a private equity acquisition.
- Your attorney should review the assignment clause in the Franchise Agreement to understand your rights if the system is sold.
Non-Disclosure of Parent Company
Medium Risk
Explanation
The franchisor is part of a complex, multi-layered international corporate structure, but the FDD does not include financial statements for the ultimate parent companies. Given the franchisor's disclosed financial weakness and negative net worth, the absence of parent financials makes it difficult to assess the overall financial strength and backing of the entire organization. You cannot determine if the parent companies have the resources or obligation to support the franchisor.
Potential Mitigations
- Your accountant should review the provided financials and note the absence of parent company data as a significant information gap.
- It is important to ask your attorney whether the parent companies have provided any form of financial guarantee for the franchisor's obligations.
- You should request the parent company's financial statements from the franchisor for a complete picture of the system's financial health.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD Package, as the franchisor has a long history and does not disclose any recent predecessors. When a franchisor acquires a system from a predecessor, it's important to understand the predecessor's history, including any past litigation, bankruptcies, or high franchisee turnover. A lack of transparency about a predecessor's track record can obscure inherited problems within the franchise system.
Potential Mitigations
- Your attorney should carefully review Items 1, 3, and 4 for any information regarding predecessors.
- If a predecessor is identified, a business advisor can help you conduct independent research into its history and reputation.
- Speaking with long-term franchisees who operated under the predecessor can provide valuable insights.
Pattern of Litigation
High Risk
Explanation
Item 3 discloses litigation that could indicate a pattern. One case initiated by a franchisee alleging fraud and misrepresentation was settled with the franchisor paying the franchisee. In another case brought by the franchisor, the franchisee filed a counterclaim alleging fraud. While not conclusive, these instances of fraud allegations in formal legal disputes may suggest potential issues in the franchise sales process or relationship management that could pose a risk to you.
Potential Mitigations
- A thorough review of the details of all disclosed litigation with your attorney is crucial to understand the nature of the allegations.
- Your attorney may be able to conduct independent research on these cases to gather more context.
- It is wise to ask existing franchisees about their interactions with the franchisor and whether their experience aligns with these legal disputes.
Disclosure & Representation Risks
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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Financial & Fee Risks
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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Legal & Contract Risks
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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Territory & Competition Risks
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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Regulatory & Compliance Risks
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
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Franchisor Support Risks
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
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Operational Control Risks
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
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Term & Exit Risks
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.
Miscellaneous Risks
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.