How to Finance a Godfather’s Pizza Franchise: Three Formats
By Marc Cornella
A Godfather’s Pizza franchise loan depends on the format you choose. The brand franchises full-size traditional restaurants, smaller traditional units built around carryout and delivery, and a compact Express kitchen designed for convenience stores and travel centers, so the same brand name can mean a project of a few hundred thousand dollars or one well over a million.
US Professional Funding is not affiliated with, sponsored by or endorsed by Godfather’s Pizza; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant before you commit.
Godfather’s Pizza Franchise Loan at a Glance
- Concept: a pizza brand serving guests since 1973, with dine-in, carryout, delivery and drive-thru pickup at traditional restaurants and a compact Express program inside convenience stores and travel centers.
- Initial franchise fee: $25,000 for Large Traditional and Small Traditional units and $10,000 for Express, according to the company’s franchising and licensing page.
- Continuing fee: 6.5% of sales, with a $350 weekly minimum for traditional units and a $200 weekly minimum for Express.
- Total investment: $708,600 to $1,620,800 for a Large Traditional restaurant, $522,600 to $1,118,550 for a Small Traditional unit and $156,500 to $421,750 for Express, per the same page.
- Financial requirements: $350,000 minimum net worth, including $200,000 in liquid net worth that excludes retirement accounts.
- Experience: one year of operations or management experience, or hiring someone who has it.
- Military discount: up to $10,000 off the initial fee for traditional formats.
- SBA Franchise Directory: listed as Godfather’s Pizza under code S2196, with no additional note.
What Is Godfather’s Pizza?
Godfather’s Pizza traces its start to the fall of 1973, when the first restaurant opened inside a bar in Omaha, Nebraska. The company began franchising the next year with a location in Lincoln, Nebraska. By 1982 the brand reported 632 franchise locations and described itself as the second-largest U.S. pizza chain of that era. It has been privately owned since 1988 and keeps its national headquarters and training facility in Omaha.
Between 1988 and 1990 the company launched Godfather’s Pizza Express, bringing its pizza into convenience stores, and today it offers both restaurant formats and nontraditional programs that sit inside another business.
The formats at a glance. The company’s franchising and licensing page describes four models:
- Large Traditional: a minimum of 2,000 square feet with 50 to 70 seats, offering dine-in, carryout, delivery and drive-thru pickup where the site allows.
- Small Traditional: a minimum of 1,300 square feet with no seating, built for carryout and delivery.
- Express: a kitchen and prep area of about 160 square feet inside a convenience store or travel center.
- To Go (licensed): under 140 square feet in total, with no franchise fee or continuing fee, using an approved commercial oven and warmer.
How lenders view the brand. A lender will see a long-established pizza brand with a decades-old franchise system and a strong nontraditional channel. Lenders will also weigh local market strength and the specific format, because a traditional restaurant and an Express kitchen inside a fuel stop are underwritten very differently.
Godfather’s Pizza Franchise Costs
The company’s main franchising and licensing page lists the figures below. Other company pages show different investment ranges and fees for some formats, so request the current FDD and use its Item 5 and Item 7 tables as the controlling numbers for your loan request.
Initial franchise fee
The initial fee is $25,000 for Large Traditional and Small Traditional units and $10,000 for Express. The licensed To Go program has no franchise fee. Eligible military candidates can receive up to $10,000 off the initial fee on traditional formats. Lenders treat the franchise fee as an intangible cost, so expect it to come from your equity or be wrapped into a loan supported by cash flow and other collateral.
Real estate and build-out
A Large Traditional unit needs at least 2,000 square feet and room for a dining area, while a Small Traditional unit needs about 1,300 square feet. Build-out covers the kitchen, ventilation, counters, restrooms, finishes and, where available, a drive-thru pickup window.
Equipment
Pizza equipment is the core of every format. The company’s Express page shows program-specific ovens, such as triple-stack impinger or double-stack wide-belt conveyor ovens, plus pizza display cases, prep and cut tables, and cold and dry storage. Traditional restaurants add a full prep line, walk-in refrigeration and dining furniture.
Opening costs and working capital
The company’s franchising site says its investment estimates include franchise fees, advertising, equipment, opening inventory, three months of real estate costs, construction, insurance, signage, training, security deposits and three months of food and labor. Lenders will still want reserves beyond that cushion.
Building your Item 7 budget
- Initial franchise fee (Item 5)
- Rent and security deposits for the first months
- Construction, leasehold improvements and signage
- Ovens, refrigeration, prep tables and smallwares
- Point-of-sale and online ordering technology
- Training and travel to the Omaha headquarters
- Opening inventory and grand opening advertising
- Insurance, licenses and permits
- Food and labor for the initial operating period
Total investment
The company’s franchising and licensing page lists a total investment of $708,600 to $1,620,800 for a Large Traditional restaurant, $522,600 to $1,118,550 for a Small Traditional unit and $156,500 to $421,750 for Express.
Ongoing Fees and How They Affect Your Loan
Continuing fee. Every franchised format pays a continuing fee of 6.5% of sales.
Weekly minimums. Traditional units pay at least $350 per week, and Express units pay at least $200 per week. A minimum fee works like a fixed cost during slow periods or a ramp-up, so lenders will include it when they test cash flow in a weaker sales scenario.
Advertising and other fees. The company’s pages do not publish a separate advertising fund rate, technology fee, transfer fee or renewal fee. Check Item 6 of the current FDD for every recurring charge.
How lenders factor these costs in. Lenders subtract the continuing fee, advertising, rent, food and labor before measuring the cash left for debt payments.
Franchisor Requirements for New Owners
Godfather’s Pizza publishes the same financial requirements for its three franchised formats:
- Net worth: a minimum of $350,000.
- Liquidity: at least $200,000 in liquid net worth, excluding retirement accounts.
- Experience: one year of operations or management experience, or a hired manager who has it.
- Training: a three-week certified class for traditional formats and a five-day class for Express, with a training certification required for each unit.
The approval process. After a qualified application, the company sends the FDD and invites the candidate to Omaha to meet the leadership team. A site submission form and deposit are required to approve a location and territory. Each unit’s operator trains at headquarters, and corporate staff support the opening for two weeks at traditional units and five days at Express.
One financing detail: the company’s franchising site says the franchise agreement is delivered at opening, with the signed agreement and fees due within 5 days after opening. Lenders usually review the franchise agreement before closing, so share the form agreement from the FDD early.
Ways to Own a Godfather’s Pizza
Open a new traditional restaurant. A Large or Small Traditional unit is a classic restaurant start-up. See our page on restaurant start-up financing for how these projects are structured.
Add Express to a convenience store or travel center. For a store owner, Express is a foodservice upgrade inside an existing business. The loan often finances equipment, a modest retrofit and the franchise fee, and the lender reviews the whole store’s cash flow. Our gas station and convenience store financing page covers how these operators borrow.
Buy an existing restaurant. When a franchisee sells, the buyer acquires an operating business with a sales history. The franchisor must approve the transfer, and lenders underwrite the actual results. Our article on buying a franchise resale walks through approvals and due diligence.
Financing Options for a Godfather’s Pizza Franchise
SBA 7(a) loans
Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan is a natural fit for a traditional restaurant. It can fund leasehold improvements, equipment, the franchise fee and working capital in one loan.
SBA 504 loans
If you are buying land and a building for a freestanding traditional restaurant with a drive-thru pickup window, an SBA 504 loan can finance the real estate and long-lived equipment.
Conventional term loans
Established restaurant operators and convenience store owners with solid financials may prefer conventional business loans, especially for smaller Express projects.
Equipment financing
Conveyor and impinger ovens, pizza warmers and display cases, refrigeration, prep tables and point-of-sale systems can be financed on their own through restaurant equipment financing and leasing. For Express, equipment can be most of the project, so an equipment loan or lease may cover the bulk of the cost.
Working capital and lines of credit
Pizza sales swing with school calendars, sports seasons and holidays, so a Godfather’s Pizza franchise loan package should include liquidity. A restaurant working capital line can cover payroll and food purchases during a slow stretch, pre-opening hiring and marketing, and the weekly minimum fee while sales ramp up.
Seller financing on resales
On the purchase of an existing restaurant, a seller may agree to carry part of the price. Seller notes are typically subordinate to the senior loan, and some loan programs limit how they can be structured.
SBA Loans for Godfather’s Pizza Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. A listing does not approve any borrower; it means the franchise relationship has cleared review.
Godfather’s Pizza’s listing. The brand appears as Godfather’s Pizza under code S2196, and the directory shows no special note or condition. In plain English, a borrower can pursue SBA 7(a) or 504 financing without any brand-specific document restriction, subject to normal SBA eligibility and the lender’s own underwriting.
Application tips. Give your lender the FDD, the site submission and approval, a lease or letter of intent, contractor bids, equipment quotes and a monthly projection that shows the 6.5% fee and the weekly minimum. The SBA 7(a) program maximum is currently $5 million, although program rules can change. For a planning estimate, try our SBA loan calculator.
How Lenders Evaluate a Godfather’s Pizza Deal
Personal credit and financial history
Lenders review your credit report, tax returns and personal financial statement, and usually require personal guarantees.
Net worth and liquidity
The franchisor’s $350,000 net worth and $200,000 liquidity minimums are a floor. Lenders will check how much cash you have left after your equity injection, because a new restaurant needs a cushion beyond the opening budget.
Restaurant or foodservice experience
The franchisor asks for one year of operations or management experience, or a hired manager who has it. If you plan to hire an operator, show their background and how you will oversee them.
Business plan and projections
Projections should reflect the format, trade area population, dine-in versus carryout and delivery mix, third-party delivery commissions, food and labor costs, rent and the continuing fee. For Express, show how foodservice sales fit with existing store traffic and staffing.
The FDD and franchise agreement
Lenders focus on Items 5, 6, 7, 10, 17 and 21, plus the franchise agreement’s term, renewal and transfer conditions. Review Item 19 to see whether the FDD includes financial performance representations, and rely on actual results when buying an existing unit. Our article on how lenders read a franchise disclosure document covers what each item means for a loan.
Site and lease
Lenders want a lease term long enough to cover the loan and the franchisor’s site approval. Delivery radius, parking and drive-thru pickup access matter for a traditional restaurant.
Historical financials for resales
For an existing restaurant, expect to provide several years of tax returns, profit and loss statements and sales reports, which the lender will reconcile against the seller’s records.
The Express Program: Financing Pizza Inside a Convenience Store
Express financing differs from a stand-alone restaurant. The company’s Express page describes layouts for new builds and retrofits, a menu of pizza, breakfast and grab-and-go items, and online ordering from day one, with a lead time of 3 to 4 months from approval to opening.
For a lender, the key questions are:
- Who is the borrower? Usually the store’s operating company, so the store’s financials drive the decision.
- What is being financed? Mostly equipment, a retrofit of the prep area, signage and the franchise fee.
- Who controls the real estate? A leased store may need landlord approval for alterations.
- How does foodservice change staffing? Projections should show the added margin after labor, food cost and the 6.5% fee or $200 weekly minimum.
Many store owners finance Express with equipment financing or a smaller term loan rather than a restaurant-style package.
Multi-Unit Growth and Development Agreements
An Area Development Agreement lets an operator lock in a territory and open several units on a schedule. Financing usually happens one unit at a time: the lender funds the first location, then looks at its results and the operator’s remaining liquidity before funding the next.
Plan equity for each opening, not just the first.
Real-World Godfather’s Pizza Franchise Loan Scenarios
A restaurant manager opens a Small Traditional unit. A longtime pizza manager opens a carryout and delivery unit in a strip center, using an SBA 7(a) loan for the build-out, ovens, franchise fee and opening costs.
A convenience store owner adds Express. A store owner with a busy highway location retrofits a corner of the store for Express. Equipment financing covers the ovens and display cases, and the store’s existing cash flow supports the payment.
A family buys an existing restaurant. A buyer acquires a traditional restaurant from a retiring franchisee. The lender underwrites its historical results, and the seller carries a small subordinate note.
Common Mistakes to Avoid
- Relying on investment ranges from a brochure instead of the Item 7 table in the current FDD.
- Leaving the weekly minimum fee out of slow-month projections.
- Underestimating the labor needed to run a hot food program inside a store.
- Signing a development agreement without planning equity for each unit.
- Skipping a review of the franchise agreement because it is delivered at opening.
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Godfather’s Pizza Franchise
Step 1: Choose your format for a Godfather’s Pizza franchise loan. Decide between Large Traditional, Small Traditional and Express based on your capital, site and experience.
Step 2: Confirm your qualifications. Check the net worth, liquidity and experience requirements, and line up an experienced operator if needed.
Step 3: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17, 19 and 21 and the form franchise agreement with a franchise attorney and accountant.
Step 4: Secure a site. Complete the site submission and approval, and negotiate a lease or store retrofit plan.
Step 5: Build your budget and projections. Tie your numbers to the Item 7 table, contractor bids and equipment quotes, and show the continuing fee at both the percentage and the weekly minimum.
Step 6: Choose a loan program and apply. Match the project to SBA 7(a), SBA 504, conventional or equipment financing.
Step 7: Close and open. Coordinate funding with construction, training and the opening date.
Godfather’s Pizza Franchise Loan FAQs
How much does a Godfather’s Pizza franchise cost?
The company’s franchising and licensing page lists $708,600 to $1,620,800 for a Large Traditional restaurant, $522,600 to $1,118,550 for a Small Traditional unit and $156,500 to $421,750 for Express. Confirm the current ranges in Item 7 of the FDD.
What is the Godfather’s Pizza franchise fee?
The initial fee is $25,000 for traditional formats and $10,000 for Express. The licensed To Go program has no franchise fee.
What royalty does Godfather’s Pizza charge?
The continuing fee is 6.5% of sales, with a weekly minimum of $350 for traditional units and $200 for Express.
How much net worth and liquid capital do I need?
The company requires a minimum net worth of $350,000, including $200,000 in liquid net worth that excludes retirement accounts.
Can I get an SBA loan for a Godfather’s Pizza franchise?
Yes, the brand is listed on the SBA Franchise Directory under code S2196 with no special note, so SBA 7(a) and 504 loans are available to eligible borrowers, subject to lender approval.
Can I finance the pizza equipment separately?
Yes. Ovens, warmers, display cases and point-of-sale systems can be financed through an equipment loan or lease.
Do I need restaurant experience?
The company asks for one year of operations or management experience, or a hired manager who has it.
Can I add Godfather’s Pizza to my convenience store?
Yes. The Express program is designed for convenience stores and travel centers, and a licensed To Go program is available for stores that want a smaller footprint with no franchise fee.
Can I buy an existing Godfather’s Pizza?
Yes, when a franchisee sells. The franchisor must approve the transfer, and lenders underwrite the unit’s actual results.
Does Godfather’s Pizza offer financing?
The company’s franchising pages do not describe any franchisor financing. Check Item 10 of the current FDD.
Final Thoughts
A Godfather’s Pizza franchise loan starts with the format. A full traditional restaurant is a classic start-up loan with a lease and build-out, while Express is a smaller equipment-driven project inside an existing store. Confirm the current figures in the FDD, plan for the continuing fee and its weekly minimum, and keep enough liquidity after closing to carry you through the opening months.
US Professional Funding helps franchise owners finance new units, acquisitions, equipment and multi-unit growth. Learn more about our franchise financing solutions and our restaurant financing programs, or talk to our team about your Godfather’s Pizza project.
