How to Finance a Figaro’s Pizza Franchise: Take-and-Bake Costs
By Marc Cornella
A Figaro’s Pizza franchise loan funds a small pizza shop built around a choice the brand calls “We Bake or You Bake”: customers can take home an unbaked pizza to finish in their own oven or order one baked in the store. That model shapes the budget, because the equipment, store size and staffing for a take-and-bake counter differ from a full dine-in restaurant.
This article explains what the franchisor publishes about Figaro’s costs and formats, the loan types that may fit, the important SBA Franchise Directory note for this brand and what lenders review. It is general information only. US Professional Funding is not affiliated with, sponsored by or endorsed by Figaro’s Pizza; the name is used only to describe the business. Figures come from the franchisor’s own materials and disclosure document and can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Figaro’s Pizza Franchise Loan at a Glance
These facts come from the franchisor’s own website and company materials:
- Founded: 1981, in Salem and Albany, Oregon
- Franchisor: Figaro’s Italian Pizza, Inc., based in Salem, Oregon
- Concept: “We Bake or You Bake” pizza, with take-and-bake plus pickup or delivery at every location
- Single-unit investment: $86,000 to $546,000, according to the company’s franchising pages last updated in 2017; confirm the current Item 7 range
- Experience: the company says no prior experience is required
- SBA Franchise Directory: listed as Figaro’s Pizza (code S0637); an applicant operating under an area representative agreement is not eligible
We could not verify the current franchise fee, royalty, advertising contribution, net worth or liquidity requirements, franchise term or system unit count from the franchisor’s current materials. Those details appear in the Franchise Disclosure Document, which you should read in full.
What Is Figaro’s Pizza?
Figaro’s began in 1981 in Salem and Albany, Oregon, as a take-and-bake pizza business aimed at busy families. The company had four stores when it changed hands in 1986, and a new ownership group acquired it on June 1, 2001. Ovens were added in 1994 and 1995, turning a take-and-bake-only operation into the “We Bake or You Bake” concept the brand uses today. The company describes itself as a carryout home meal replacement business, with a menu of pizza, sides, wings and Italian classics.
The franchisor has also looked overseas. In January 2022 it announced a development agreement to expand the brand in India over 25 years.
Store formats. The company describes several single-unit models: take-and-bake only; dine-in with take-out and delivery; and take-out and delivery only. Facility size depends on the market and site. The company notes that many locations operate in smaller communities of 9,000 to 12,000 people.
How lenders see it. A small-footprint carryout pizza shop is a familiar restaurant type, and a take-and-bake-only store needs less cooking equipment than a full kitchen. Lenders still underwrite the owner, the site and the lease carefully, because restaurant margins depend on labor, food cost and local demand.
Figaro’s Pizza Franchise Costs
The company’s franchising pages list a single-unit investment of $86,000 to $546,000. Those pages were last updated in 2017, so treat the range as a starting point and rely on Item 7 of the current disclosure document. The wide spread reflects the format: a take-and-bake-only counter in a small strip-center space sits at the low end, while a dine-in store with ovens and seating costs far more.
Initial franchise fee
The company says the investment includes initial franchise fees, but it does not publish the amount on its website. Check Item 5 for the fee and any multi-unit pricing.
Lease and build-out
Most stores lease retail space. Build-out covers walls, flooring, plumbing, electrical, a make line, refrigeration space, counters and, for baked or dine-in formats, ventilation for ovens and seating. Lenders want a signed lease or letter of intent with terms that run at least as long as the loan.
Equipment
A take-and-bake store needs make tables, walk-in or reach-in refrigeration, dough equipment, packaging stations and a point-of-sale system. Adding baked pizza brings pizza ovens and hood systems, and dine-in adds furniture and dishware.
Opening inventory, training and working capital
The company lists training costs, inventory, computer hardware and software, and insurance among the items in the investment. Add pre-opening payroll, grand opening marketing and reserves for the first months.
Expect the Item 7 table to group costs into categories such as:
- The initial franchise fee
- Lease deposits and rent before opening
- Leasehold improvements and build-out
- Kitchen equipment, refrigeration and, where used, ovens
- Signage, furniture and fixtures
- Computer hardware, software and point of sale
- Opening inventory and supplies
- Training expenses and insurance
- Grand opening marketing and additional funds
Our article on how much franchise you can afford helps match the range to your cash and borrowing capacity.
Ongoing Fees and How They Affect Your Loan
Item 6 of the disclosure document lists the royalty, any advertising or marketing fund contribution, technology fees and transfer and renewal fees. The company describes marketing support that includes grand opening campaigns, radio and TV commercials, promotional materials and a private intranet with marketing aids.
Lenders take royalty and marketing fees off the top, then subtract food, paper, labor and rent before testing whether the remaining cash flow covers the loan payment. Take-and-bake can mean lower labor and energy per pizza than a full kitchen, but projections should reflect your actual format.
Franchisor Requirements for New Owners
The company says the main requirement is the desire to be your own boss, and that no prior experience is needed. Applicants complete a confidential franchise application, and suggested sites are scored against attributes the company considers important.
Training includes classroom and on-the-job instruction in site selection, pre-opening, daily operations, food preparation, hiring, customer service, ordering, business management and food cost control. After opening, field service representatives support owners by phone and in-store visits, and owners receive a confidential operations manual.
Ways to Own a Figaro’s Pizza
A new store. Most owners open a new location, choosing the format that fits the site and market. Our page on franchise start-up financing explains how new units are funded.
Buying an existing store. A resale offers sales history and an operating crew. The franchisor must approve the buyer. See franchise restaurant acquisition financing and our article on buying a franchise resale.
Multi-unit ownership. The company offers single-unit and multi-unit franchises, with the multi-unit investment depending on the number and type of stores.
Financing Options for a Figaro’s Pizza Franchise
SBA 7(a) loans. An SBA 7(a) loan can cover the franchise fee, build-out, equipment, inventory and working capital for a new store, or the purchase price of an existing one.
SBA 504 loans. If you buy the building, SBA 504 financing may fit the real estate and long-lived equipment.
Conventional term loans. Experienced restaurant operators with strong credit may consider conventional business loans.
Equipment financing. Ovens, refrigeration, make tables and point-of-sale systems can often be financed separately through restaurant equipment financing, which keeps cash for opening.
Working capital and lines of credit. Payroll, food inventory and marketing all run ahead of sales in the first months. Restaurant working capital can help cover that ramp-up and slower seasons.
Seller financing on resales. A seller may carry part of the price. Seller notes are typically subordinate to the primary loan, and SBA rules may limit how they are structured.
SBA Loans for Figaro’s Pizza Franchisees
SBA loans are made by participating lenders with an SBA guarantee on part of the loan. For a franchise, the lender confirms that the agreement leaves the owner in control of the business, and the SBA Franchise Directory helps with that check. The SBA 7(a) program maximum is currently $5 million, and program rules can change.
The directory listing. Figaro’s Pizza appears on the SBA Franchise Directory under code S0637. A listing does not approve any borrower or guarantee a loan.
What the directory note means. The listing says an applicant operating under an area representative agreement is not eligible for SBA assistance. An area representative typically recruits and supports other franchisees in a region in exchange for a share of fees. If you plan to take on that role, SBA financing will not be available for that business, so a conventional loan would be the likely route. A standard single-unit or multi-unit franchisee is not affected by this note.
Application tips. Prepare the disclosure document and franchise agreement, a lease or letter of intent, equipment quotes, a sources and uses statement, personal financial statements and tax returns.
How Lenders Evaluate a Figaro’s Pizza Deal
Personal credit and financial history. Lenders review credit, tax returns and debts, and expect personal guarantees from significant owners.
Net worth and liquidity. Expect questions about your cash injection and the reserves left after opening.
Restaurant or management experience. The franchisor does not require experience, but lenders give weight to food service or management background.
Business plan and projections. Show your format, local demand, the mix of take-and-bake and baked sales, food and labor cost assumptions, and the royalty and marketing fees.
The disclosure document and franchise agreement. Lenders review the term, renewal and transfer rules, and whether you are signing a franchise agreement or an area representative agreement.
Site and lease. Lenders look at visibility, parking, traffic and lease length.
Historical financials on resales. For an existing store, expect several years of sales reports, tax returns and profit and loss statements.
Multi-Unit Growth and Development Agreements
Owners who do well with one store may add more. Lenders financing a second or third Figaro’s look at the first store’s results, your global cash flow and remaining liquidity. Our article on multi-unit franchise financing explains the process.
Real-World Scenarios
A first-time owner in a small town. A buyer opens a take-and-bake-only store in a small community, using an SBA 7(a) loan for the build-out and working capital.
A restaurant manager adding ovens. An experienced manager opens a baked and take-and-bake store and finances the ovens and hood separately.
A buyer purchasing an existing store. A buyer acquires an operating Figaro’s; the lender underwrites its history and the seller carries a small subordinate note.
A prospective area representative. An investor considering an area representative role learns that SBA financing is not available and plans a conventional loan instead.
Common Mistakes to Avoid
- Relying on an older website range instead of the current Item 7 table
- Choosing a format without pricing its equipment and build-out
- Leaving royalty and marketing fees out of projections
- Signing a lease shorter than the loan term
- Assuming an area representative agreement qualifies for SBA financing
For more, see the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Figaro’s Pizza Franchise
Step 1: Request the disclosure document. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney.
Step 2: Pick your format and site. Match the store model to your market.
Step 3: Price the build-out and equipment. Get contractor and equipment quotes.
Step 4: Build your budget. Use our SBA loan calculator to estimate payments for planning only.
Step 5: Gather documents. Collect tax returns, a personal financial statement, a resume and the franchise documents for your Figaro’s Pizza franchise loan request.
Step 6: Apply and close. Coordinate franchisor approval, lease signing and loan approval.
Figaro’s Pizza Franchise Loan FAQs
How much does it cost to open a Figaro’s Pizza?
The company’s franchising pages, last updated in 2017, list a single-unit investment of $86,000 to $546,000. Confirm the current range in Item 7.
What is the Figaro’s Pizza franchise fee?
The fee is included in the investment but not published on the company’s website. Check Item 5.
Do I need restaurant experience?
The company says no prior experience is required, though lenders weigh experience in their review.
Is Figaro’s Pizza on the SBA Franchise Directory?
Yes, under code S0637. An applicant operating under an area representative agreement is not eligible.
Can I get a Figaro’s Pizza franchise loan for a take-and-bake-only store?
Yes, subject to approval. A take-and-bake-only store usually needs less equipment, which can mean a smaller loan.
Can I finance equipment separately?
Often, yes. Ovens, refrigeration and point-of-sale systems can be financed on their own.
Does Figaro’s offer financing?
Check Item 10 of the disclosure document for any franchisor financing.
Can I own more than one store?
Yes. The company offers multi-unit franchises, and lenders review the first store’s results before financing the next.
How long is the franchise term?
The term and renewal rules appear in Item 17. Lenders want the term to cover the loan.
Final Thoughts
A Figaro’s Pizza franchise loan can fund a lean take-and-bake counter or a full baked and dine-in store. Owners who confirm current Item 7 costs, choose the right format and avoid the area representative pitfall give lenders a clear, financeable plan.
US Professional Funding helps owners finance restaurant start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing.
