CPK

Item 7 in the FDD outlines the initial franchise fee at $50,000 for a single unit, with ongoing royalties at 5% of gross sales plus 1% into the brand/advertising fund—fees that align with casual dining norms but stack up amid thin franchisee ranks of just 12 locations versus 119 company-owned. No Item 19 earnings disclosure means no official AUV or profit figures, forcing reliance on broader benchmarks where similar full-service pizza concepts average $1.5M-$2M in sales but face 10-15% failure risks in urban/suburban spots. Projected 7 new units signal intent to expand into airports and malls, yet one non-renewal last year underscores selectivity in high-traffic conversions or area developments.

System health flags caution: a 20% franchise contraction from 15 to 12 units between 2023-2024 highlights vulnerability, especially post-bankruptcy under CPK Holdings Inc., which has prioritized corporate control since franchising began in 1996. SBA default rates for casual dining hover at 15-20%, and CPK's history amplifies lender scrutiny, potentially hiking financing costs for the full buildout in mixed-use centers. For investors eyeing $1M+ total investments typical in this category, the lopsided corporate dominance questions support depth, making due diligence on real estate approvals and beverage margins critical to offset contraction trends.