California Pizza Kitchen Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$50,000
Investment required
$990,000 - $6,900,000
Royalty fee
5.00%

California Pizza Kitchen: A Pioneer in Pizza Innovation

California Pizza Kitchen (CPK), a distinguished name in the restaurant sector, has led the way in crafting inventive and original pizzas since it was established. Founded in 1985 by Larry Flax and Rick Rosenfield in Beverly Hills, California, CPK has gained acclaim for merging California cuisine with classic pizza, creating a refreshing and distinctive dining experience. The franchise's headquarters, located in Playa Vista, California, reflect its deep Californian roots.

In 1987, California Pizza Kitchen began franchising, marking a pivotal point in its expansion journey. Renowned for its eclectic menu, CPK offers a wide variety of pizzas, pastas, salads, and unique appetizers, all bursting with bold and unique flavors.

CPK stands out in the competitive landscape due to its unwavering dedication to culinary creativity and the use of fresh, high-quality ingredients. The franchise has consistently redefined pizza innovation, introducing non-traditional toppings and combinations that cater to diverse palates, from the adventurous eater to the traditionalist.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

California Pizza Kitchen offers 3 types of franchises:

Restaurant Type Initial Investment
A NEW CPK RESTAURANT $2,332,000 to $6,940,000
A CONVERSION RESTAURANT $990,000 to $4,840,000
A CPK RESTAURANT AT A NON-TRADITIONAL FACILITY $1,925,000 to $5,400,000

We are summarizing below the main costs associated with opening a New CPK Restaurant franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

A New CPK Restaurant

Type of Expenditure Amount
Initial Franchise Fee $50,000 - $50,000
Construction and Leasehold Improvements $1,500,000 - $5,000,000
Architects and Design $150,000 - $240,000
Signs $15,000 - $50,000
Furniture and Fixtures $47,000 - $100,000
POS System, Back Office Technology and Software $35,000 - $100,000
Equipment and Security Systems $300,000 - $500,000
Lease Deposit $15,000 - $25,000
Lease Rent (3 months) $35,000 - $150,000
Utility Deposits $10,000 - $30,000
Licenses and Permits $5,000 - $20,000
Liquor License $10,000 - $200,000
Professional Fees $5,000 - $25,000
Initial Food Inventory $12,000 - $20,000
Initial Supplies and Non-Food Inventory $3,000 - $5,000
Insurance $10,000 - $15,000
Training Expenses $20,000 - $50,000
Grand Opening Marketing $10,000 - $10,000
Additional Funds – 3 Months (Working Capital) $100,000 - $350,000
Total Estimated Initial Investment $2,332,000 - $6,940,000

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Number of units

2024
Franchised units

16

13

15

Company-owned units

182

154

153

Total units

198

167

168

Franchise Disclosure Document

Training 

California Pizza Kitchen (CPK) offers a comprehensive training program designed to equip franchisees with the essential skills and knowledge for effective restaurant management. The training covers various facets of restaurant operations, including safety, sanitation, back-of-house (BOH) procedures, management routines, station training, skill development, and front-of-house (FOH) management.

Overview of the Training Program

  • Safety & Sanitation; BOH Round Robin: In the first week, franchisees receive 10-20 hours of classroom instruction and 30-40 hours of hands-on training. This phase covers safety protocols, sanitation standards, and an introduction to BOH operations.
  • Management Routines & BOH Station Training (Foundational Items): The second week continues with a similar structure, focusing on management routines and foundational training for BOH stations.
  • Management Routines & BOH Station Training (Station Skills & Bail Out): During the third week, training delves into detailed BOH station skills and emergency procedures.
  • Management Skill Building & FOH Management Training: The fourth week emphasizes management skill development and FOH management, ensuring franchisees are prepared for overall restaurant oversight.

Training can be delivered virtually, at a CPK restaurant, or at the Restaurant Support Center (RSC) in Costa Mesa, California, depending on the needs of the franchisee and CPK's assessment. The duration and specific content of the training program are customized based on the franchisee's previous experience.

Territory Protection

California Pizza Kitchen provides franchisees with a "Protected Territory" surrounding their restaurant location, within which the franchisor agrees not to operate or permit the operation of another CPK Restaurant. The size and boundaries of this territory are determined by factors such as demographics, population density, and the competitive landscape, and may be defined using specific street boundaries, county lines, state lines, municipal borders, or other similar descriptors.

This protected area is generally established as a radius around the restaurant location, though it can vary depending on the specific market conditions and location. However, CPK and its affiliates maintain the right to operate and license others to operate different types of restaurants, other than CPK Restaurants, within the franchisee's Protected Territory.

Additionally, CPK reserves the right to merchandise and distribute goods and services identified by the Marks through various channels, including e-commerce and retail outlets like grocery stores and supermarkets, both within and outside the Protected Territory. Furthermore, CPK retains the right to operate or license others to operate CPK Restaurants at Non-Traditional Facilities, which may be situated inside or outside the Protected Territory.

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