Pizza Hut, LLC (PHLLC or Pizza Hut) is the franchisor. YUM! Brands, Inc is the corporate parent of PHLLC. The franchisor offers businesses to operate Pizza Hut restaurants. Pizza Hut restaurants offer pizza, pasta and other Italian-style food items, and WingStreet chicken products and side dishes. There are three types of Pizza Hut-branded restaurants that the franchisor currently offer to operate:
- Restaurant-Based Delivery (RBD) System Restaurants: dine-in restaurants with carryout and delivery.
- Delivery/Carryout (Delco) System Restaurants have only carryout and delivery options.
- Delivery Based Restaurant (DBR)/Fast Casual Delco (FCD) System Restaurants: menu items available for dine-in and carryout consumption, or delivered for off-premises consumption.
All new franchisees must complete the Initial Training Program. The Initial Training Program is held in headquarters offices and at the system restaurant in Plano, Texas. The Initial training program includes a “First Slice” course. Duration of the First Slice depends on franchisees’ experience (or their qualified operators) and will vary from 8 to 12 weeks at the discretion of the franchisor.
This course requires from franchisees or other required trainees at least
- attend at all Franchisee Onboarding (one-on-one meetings with designated Pizza Hut functional leaders),
- attend and complete Restaurant Training (including all mandatory web-based training through the Learning Zone) at that franchisor designates,
- attend at all Pizza Prep classes that provided in headquarters or nearby,
- Completion of all parts of the First Slice Onboarding Checklist.
The First Slice must be completed three to four weeks before the opening of the restaurant. According to guidelines that the franchisor may specify in the brand standards or otherwise, the franchisee may request on-site training or assistance at any time. Periodically, the franchisor may offer additional training required to franchisees and the system restaurant manager(s) to attend and complete. The franchisor may also provide conferences, conventions, or training session programs.
Territory Granted: The franchisor will grant Protected Radius to the franchisees. Protected Radius consists of 500 yards surrounding each restaurant.
The franchisor will not develop or operate, or allow any other franchisee or licensee to develop or operate on-site or within the Protected Radius, a system restaurant that is similar to the type of system restaurant concept that the franchisee operates at the site, as long as the franchisee adheres to all brand standards, the fulfillment of delivery orders to national, regional and institutional accounts and provide adequate delivery services throughout the delivery area (s). For each restaurant, the franchisor will grant franchisees a specified delivery area, where they can deliver menu items.
Obligations and Restrictions: This is not a requirement, however, the franchisor recommends that the franchisee (or their principal owners) participate in the daily operation of the restaurant(s). An on-site manager who has completed the required training program must directly supervise the restaurant.
Franchisees must also appoint and maintain one or more qualified operators to actively manage and participate in the daily operation and ownership of their franchise business. The franchisor will designate a number of qualified operators depending on the size and scope of the restaurant.
The franchisor must approve each of the qualified operators (such approval must not be unreasonably denied). Unless otherwise agreed in writing, franchisees may sell only goods approved by the franchisor, and are standard for the type of system restaurant franchisees operate.
Term of Agreement and Renewal: Generally, the initial term of the franchise is 10 years. If requirements are met, franchisees have two consecutive Renewal Franchise Agreements for a period of five years each.
Financial Assistance: The franchisor does not offer, directly or indirectly, any arrangements for financing a franchisee’s initial investment or the continuing operation of their restaurants, except for circumstances described below. The franchisor may choose not to allow them to participate in any of the credit assistance programs, even if the franchisees meet all of the program requirements. Pizza Hut, LLC can close the Lending Assistance Programs at any time.
- YUM Minority Lending Assistance Program: YUM will guarantee 25% of up to $12,000,000 of the principal of the franchised business loan, up to a maximum of $3,000,000 per loan or franchisee if minority franchisees satisfy YUM’s participation criteria and YUM agrees to allow them to participate.
- Pizza Hut Employee Lending Assistance Program: For qualified former employees of Pizza Hut, LLC and its predecessor and/or affiliates the franchisor offers an optional lending assistance program. Lending assistance will take the form of guaranteeing 25% of their loan principal under this program, for a maximum guaranteed amount of $1,250,000 per loan or franchisee if the franchisee meets the participation criteria and the franchisor agrees to allow them to participate.