In the early 1990's, following
numerous requests, Casa Mia decided to begin a limited franchise program.
The first of these opened in Kennewick in 1992. There are now nine Casa
Mia Italian Restaurants located in Hoquiam, Olympia, Lacey, Kennewick,
Richland, Yakima, Puyallup, and Lakewood, Washington. Our newest Casa
Mia recently opened in Yelm, Washington. Growth has been slow and controlled
with an emphasis on finding good locations at affordable costs.
A Casa Mia Franchised restaurant will normally cost from about $50,000
to about $200,000 not including real estate. Typically, the costs break
down as follows: the franchise fee is $18,500, equipment costs are up
to about $120,000 and leasehold improvements can range from $30,000
to over $60,000. These are only approximations, as every situation is
different. Some of the factors that can influence the cost include the
size and condition of the space, the willingness of the landlord to
contribute, financing considerations, location and local codes, etc.
We have built and opened restaurants at both ends of the range. Keep
in mind that the site selection and costs are probably the most difficult
and variable factors affecting the long-term success of any business.
In addition to the franchise
fee of $18,500 franchisees pay an ongoing royalty fee of 5% of gross
sales.
Why should anyone pay such a substantial franchise fee and ongoing royalties
and what do you get for your investment?
Basically, a franchise company sells a system that has been tried and
successful. As we tell people, what you really are paying for is our
mistakes, made since 1952 and the knowledge we've gained from them.
Typically, the failure rate in the first five years for independent
restaurants is around 80%, compared to about 20% for franchised restaurants,
so there is a significant advantage to opening a franchised business
compared to an independent. Even so, success is far from guaranteed.
Opening a business is a difficult challenge under any circumstance.
The odds are formidable and the potential for loss great. It is clearly
not for everyone. We encourage you to carefully examine not just Casa
Mia, but any opportunity before committing the investment of money and
time required.
If you would like more information we would be happy to meet with you
and present a Casa Mia Franchise Offering Circular, which details our
company and the Casa Mia Franchise program. Please call Bob Knudson
at 360-352-0440 or at cmia@qwest.net.
return
to top^