is the world's largest restaurant company in terms of the number of restaurants with more than 37.600 restaurants in other countries ‡For more than 50 years Yum!.000 restaurants in the United States and more than 5..has more than 6.S.MARKET PRESENCE ‡A subsidiary of Yum! Brands. Pizza Hut. Inc. International and China Division .000 locations in more than 120 countries ‡The Yum! system includes three operating segments: U.

franchised pizza chains command an approximately 60% share of the The pizza industry "has grown into a food service. commanding $30 billion a year from U.S. (pizzamarketplace. pizza market.S.‡ Pizza is the #1 dinner choice and 93% of Americans eat at least one pizza per month (Pizza Today Magazine) ‡ Today. customers .

Pizza Hut ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Review application Issue Franchise Disclosure Document (FDD) Verify assets and geographic interests Conduct and review credit check and franchise profile Conduct background check Identify candidate s goals Overview approval process Overview training requirements Overview Operating Plan outline Overview development plan opportunities Sign and return FDD receipt Review FDD and prepare questions Complete franchising profile Prepare Operating Plan Franchisee Candidate ‡ ‡ ‡ Sign and return FDD receipt Review FDD and prepare questions Complete franchising profile ‡ Prepare Operating Plan .

if applicable ‡ ‡ ‡ Franchisee Candidate Prepare for interview Attend interview Follow up with additional information after interview. if necessary .Pizza Hut ‡ ‡ ‡ ‡ Conduct Interview Review Operating Plan Identify and discuss issues Inspect candidate s existing operations.

Pizza Hut ‡ ‡ Set up half day in-store experience Host Discovery Day at Pizza Hut Center of Restaurant Excellence (CORE) Discuss initial trade area strategy ‡ ‡ Conduct Q&A ‡ ‡ ‡ ‡ Franchisee Candidate Attend half day in-store experience Attend Discovery Day Provide initial trade area direction Follow up with additional information after Discovery Day. if necessary .

Pizza Hut ‡ ‡ ‡ ‡ ‡ ‡ Determine trade area selection strategy Provide detailed demographic information on selected trade areas Discuss scale objectives and future development Discuss Pizza Hut Development Services options Create and approve proposed trade area map Prepare and issue Letter of Intent (LOI) ‡ ‡ ‡ Franchisee Candidate Outline development vision Identify focus trade area(s) Sign and return LOI with deposit .

Pizza Hut ‡ Conduct notification process to existing franchisee(s) Review and approve candidate s business entity ‡ ‡ Prepare and issue Development Agreement ‡ ‡ ‡ Franchisee Candidate Prepare business entity Begin initial site identification and negotiation Sign and return Development Agreement with development fee .

Pizza Hut ‡ ‡ Provide on-boarding support Review and approve architectural drawings Schedule/conduct operations training ‡ ‡ ‡ Provide development expertise ‡ Support Grand Opening ‡ ‡ ‡ ‡ ‡ Franchisee Candidate Finalize site negotiations and lease Finance restaurant Build restaurant Hire team Attend operations training Grand Opening .

Pizza Hut ‡ ‡ ‡ ‡ Provide business support Develop marketing calendar Provide on-going training Provide Pizza Hut brand leadership ‡ ‡ ‡ ‡ Franchisee Candidate Run a great restaurant Execute marketing programs Build people capability Create a growth vision .

Pizza Hut ‡ Verify Growth Readiness ‡ Franchisee Candidate Build Additional Restaurants .

‡ In-store training taught by a Restaurant Training Manager or Certified Training Instructor held in a certified training restaurant ‡ Store opening support.TRAINING SUPPORT ‡ 8-10 week operations training program highlighting all aspects of owning and operating a Pizza Hut restaurant. which includes members of the Pizza Hut Operations Development team present at the store prior to and after the restaurant opening to ensure execution excellence .

‡ Classes are offered through Yum! University that cover a wide range of topics. ‡ Educational sessions are held at two franchise business conferences each year. .CONT D ‡ Pizza Hut provides each franchisee with a Franchise Business Coach who provides individual business consultations and has a support team of operations managers and local store marketing experts. ‡ Regional meetings provide training on new product rollouts and other information pertinent to your local market.

Growth Mindset: ‡ A Pizza Hut franchisee must have a vision to be a five-unit operator in four to five years.‡ Minimum requirements to qualify to be a Pizza Hut franchisee Financial: ‡ $250. if opportunities are available.000 Liquid Assets ‡ Strong Credit Report and History ‡ Endorsed financial plan for future development Experience: ‡ A qualified candidate will have successful business ownership or management experience. ‡ Should be cutomer oriented .000 Net Worth ‡ $250. ideally in the restaurant or retail industries.

25% of Gross Sales Duration of approval process ‡ Initial qualification involves a series of background checks and interviews ‡ takes 10-12 weeks. franchisor only guides. franchaisee gets 1 year time to open. ‡ No personal equipments/ funtiure/menu can be used ‡ Material can only be purchased from the approved suppliers by pizza hut . trade area selection and approval can take three to nine months Opening $ running of the restaurant ‡ After approval. ‡ After that.Fees.000 Monthly Service Fee (Royalties) = 6% of Gross Sales Advertising = 4. ‡ Franchisee has the responsibility to open the restaurant . royalties and advertising payment ‡ ‡ ‡ Initial Franchise Fee = $25.

000-$200.000 When Acquired Smallwares Method: Lump Sum $10.Type of Expenditure Amount Payment When Due Initial Franchise Fee $25.000 Before Restaurant opens or when Method: Lump Development Sum Payment To: PHI Agreement signe d Method: Lump Sum Payment To: YRSG Method: Lump Sum Payment To: PHI or its Subsidiaries and Affiliates Within 30 days of receipt of invoice from YRSG Development Services Fee Varies Development Fees Varies At the time of signing Development Agreement Equipment Method: Lump Sum $100.000 Payment To: When Acquired .000-$20.000 Payment To: Vendor Method: Lump Sum Payment To: Vendor When Acquired Opening Inventory $4.000-$8.

000-$250. Utilities and Suppliers Method: As Incurred As Incurred Payment To: Employees.000 Start-up "Other" TOTAL $3.000-$22.000-$25.000-$20.000-$45.000-$620.Building and Improvements $115.000 Method: Varies Varies Payment To: Varies Method: See footnote Payment To: See footnote Delivery Vehicles See footnote See footnote Computers $15.000-$5.000 .000 Advertising $15.000 Miscellaneous $10. Utilities and Suppliers Method: As Incurred First 18 Weeks Payment To: Media Suppliers Additional Funds (Three Months) $5. When Acquired its Affiliates or approved Vendors Method: As Incurred Payment To: As Incurred Employees.000 $302.000 Method: Lump Sum Payment To: PHI.

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