How to Finance a Great Alaska Pizza Company Franchise: SBA Basics
By Chris Cornella
A Great Alaska Pizza Company franchise loan funds a made-to-order pizza restaurant in a regional brand that has built its name across Alaska’s largest communities. Because this is a small, tightly focused system with limited published franchise data, buyers need to lean on the Franchise Disclosure Document (FDD) and a clear lending plan from the start.
Below we cover what is publicly known about the brand, the costs to pin down in the FDD, its SBA Franchise Directory listing and how deals are typically financed.
US Professional Funding is not affiliated with, sponsored by or endorsed by Great Alaska Pizza Company; 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 lender review and approval. Nothing here is legal, tax or investment advice. Review the current FDD and franchise agreement with a qualified franchise attorney and accountant before you commit.
Great Alaska Pizza Company Franchise Loan at a Glance
- Concept: a locally owned Alaska pizza brand serving made-to-order pizza, wings, salads, breadsticks, pepperoni rollers and desserts for carryout, pickup and delivery.
- Track record: the company describes itself as Alaska’s favorite locally owned pizza location for over 30 years.
- System size: the company’s website lists 12 restaurants in Anchorage, Eagle River, the Mat-Su Valley, Fairbanks and North Pole.
- Franchise fee, royalty and investment: not published on the company’s public pages; Items 5, 6 and 7 of the current FDD control.
- Owner requirements: net worth and liquidity expectations are set by the franchisor during the application process.
- SBA Franchise Directory: listed under code S5768, with a note about the Collateral Assignment of Lease when real estate secures the loan.
What Is Great Alaska Pizza Company?
Great Alaska Pizza Company, often shortened to GAPCO, is a pizza chain built for Alaska. The company says it has been the state’s favorite locally owned pizza location for more than 30 years, and its website lists restaurants in Anchorage, Eagle River, Wasilla, Palmer, Settlers Bay, Fairbanks and North Pole.
The menu and service model. The company says its dough is made in house daily and that its ingredients are never frozen. The menu centers on pizza, with chicken wings, salads, breadsticks, pepperoni rollers, drinks and desserts. Customers order for carryout, pickup or delivery, including online ordering, and the company promotes group orders and a pizza kit fundraiser program for schools and organizations.
Why lenders view it the way they do. Lenders see a regional brand with a long operating history and strong local recognition. Because the system is small, they put more weight on the site, the borrower’s restaurant experience and the FDD than they would with a large national franchise.
Great Alaska Pizza Company Franchise Costs
GAPCO does not publish its fee schedule or investment range on its public pages. The figures that matter for a loan are in the FDD, which the franchisor must provide before you sign or pay. Use the sections below as a checklist when you read it.
Initial franchise fee. Item 5 discloses the initial fee, when it is due, whether any part is refundable and whether reduced fees apply to additional restaurants. Lenders typically treat the franchise fee as part of the total project cost.
Real estate and build-out. Most pizza restaurants operate in leased space. Build-out for a delivery and carryout pizza kitchen usually includes ventilation for the ovens, electrical and gas service, plumbing for prep and dish areas, a customer counter and signage. Alaska freight costs and a short building season call for a realistic schedule and contingency.
Total investment. Item 7 breaks the estimated initial investment into line items. Expect categories such as:
- Initial franchise fee
- Rent, security deposits and pre-opening occupancy costs
- Leasehold improvements and construction
- Kitchen equipment, smallwares and furniture
- Signage and decor
- Point-of-sale and online ordering technology
- Opening inventory and supplies
- Training, travel and pre-opening labor
- Insurance, licenses and permits
- Grand opening marketing
- Additional funds for the initial operating period
Lenders size a Great Alaska Pizza Company franchise loan from that table, then adjust it for your actual site, bids and lease terms. Kitchen equipment typically includes pizza ovens, dough mixers, refrigeration, make lines and an online ordering system.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing. Item 6 of the FDD lists the royalty, any advertising or marketing contribution, and how each is calculated. Confirm whether fees are based on gross sales, whether minimums apply and when payments begin.
How lenders factor these costs in. Royalties and marketing fees come off the top of sales before debt service. Item 6 also lists technology, transfer and renewal fees. Lenders build them into projected cash flow, then test whether the restaurant can still cover loan payments if sales come in below plan.
Franchisor Requirements for New Owners
GAPCO does not post minimum net worth or liquid capital figures on its public pages. Ask the franchisor for its financial qualifications early and confirm them against the FDD. Expect it to review your personal financial statement, restaurant management experience, operating plan and target market.
The approval process. Expect an inquiry, FDD review, site approval and the franchise agreement. Start the financing conversation as soon as you have the FDD.
Ways to Own a Great Alaska Pizza Company Restaurant
A new restaurant. A new unit is financed on projections, the build-out budget and your experience. Lenders review the lease, contractor bids and the Item 7 estimate. Our restaurant start-up financing options are built for this stage.
Buying an existing restaurant. If a franchised or company location becomes available, a resale lets a lender underwrite actual sales and expenses. The franchisor must approve the transfer, and you should confirm the remaining franchise and lease terms. Learn more about financing a franchise restaurant acquisition.
Multiple restaurants. Owners who add locations over time usually finance each one separately at first, then consolidate as their track record grows. Any development rights are described in the FDD.
Financing Options for a Great Alaska Pizza Company Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can cover the franchise fee, build-out, equipment, working capital or the purchase of an existing restaurant, subject to approval.
SBA 504 loans. If you buy or build the building, an SBA 504 loan is designed for owner-occupied real estate and long-lived equipment. This is where the directory note discussed below comes into play.
Conventional term loans. Borrowers with strong credit, collateral and restaurant experience may prefer a conventional business loan, which can offer more flexible structures for some deals.
Equipment financing. Pizza ovens, mixers, refrigeration and make lines can be financed separately so that equipment debt is matched to the life of the assets. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. Pizza sales in Alaska can shift with daylight, weather, school calendars and seasonal tourism. A line of credit helps cover payroll, food purchases and delivery costs during slower stretches. Explore restaurant working capital for that purpose.
Seller financing on resales. When an existing restaurant is sold, a seller may agree to carry part of the price. Any seller note must be acceptable to the senior lender, is typically subordinate to it, and loan programs may limit how it is structured.
SBA Loans for Great Alaska Pizza Company Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally require a brand to appear on the directory before making an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it simply clears the franchise relationship for review.
The listing. Great Alaska Pizza Company appears on the directory under code S5768.
What the directory note means. The note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Collateral Assignment of Lease Agreement may not be executed. In plain English, many franchisors ask a tenant franchisee to sign a document that lets the franchisor step into the lease if the franchise ends. When the owner holds the property and pledges it to the SBA lender instead, that lease assignment no longer fits and could conflict with the lender’s lien, so it is not used for that loan. For a buyer leasing space, the standard lease documents apply; for a buyer purchasing the building, the lender’s security comes first.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. Give the lender the full FDD, the franchise agreement, your lease or purchase contract, contractor bids, a personal financial statement, tax returns and a business plan with monthly projections. Our FDD financing overview shows which items lenders read first.
How Lenders Evaluate a Great Alaska Pizza Company Deal
Personal credit, net worth and liquidity. Lenders review your credit report, tax returns and personal financial statement, typically require a personal guarantee, and want to see cash for the equity injection plus reserves after closing.
Industry and management experience. Pizza delivery and carryout depend on labor scheduling, driver management and speed. Prior restaurant management experience strengthens a request.
Business plan and projections. Projections should reflect the Alaska market you plan to serve, the mix of carryout, pickup and delivery, group order and fundraiser business, and the royalty and marketing fees from Item 6.
The FDD and franchise agreement. Lenders check the franchise term, renewal, transfer and termination provisions in Item 17 and whether Item 19 includes financial performance representations.
Site and lease. Lenders want a lease term that covers the loan, reasonable rent, and visibility and access suited to delivery and pickup traffic.
Historical financials for resales. For an existing restaurant, expect to provide several years of profit and loss statements, sales reports and tax returns.
Equipment and Operations in Alaska
A pizza kitchen is equipment intensive. Ovens, mixers, refrigeration, make lines and holding cabinets carry most of the hard asset value, and they are also collateral. In Alaska, shipping and installation can take longer and cost more, so get firm quotes and keep a repair reserve.
Delivery adds vehicles, insurance and winter road conditions to the plan, so show the lender how you will handle the winter months.
Multi-Unit Growth
Ask about development rights and territory protection in the FDD. Lenders typically finance a second or third restaurant once the first has a track record, using the combined cash flow of all units, so keep consolidated financial statements from day one.
Real-World Scenarios
A restaurant manager opening a first location. An experienced pizza manager secures a site in a growing Mat-Su Valley neighborhood. The buyer uses an SBA 7(a) loan for build-out, equipment and working capital, contributes the required equity and keeps a reserve for the first winter.
A buyer purchasing an existing restaurant. A local entrepreneur buys an established location from its owner with the franchisor’s approval. The lender underwrites the restaurant’s actual history, and the seller carries a small subordinate note.
An owner buying the building. A franchisee purchases a freestanding building for a new restaurant and finances it with an SBA 504 loan. Because the real estate secures the loan, the Collateral Assignment of Lease is not executed, as the directory note provides.
Common Mistakes to Avoid
- Building a budget before you have the FDD and Item 7
- Underestimating Alaska construction, freight and installation costs
- Ignoring seasonal swings in sales and delivery costs
- Signing a lease shorter than the loan term
- Leaving too little working capital for the first winter
- Skipping a review of transfer and renewal terms before buying a resale
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Great Alaska Pizza Company Franchise
Step 1: Contact the franchisor. Request the current FDD and ask about financial qualifications and available markets.
Step 2: Review the FDD with advisors. Focus on Items 5, 6, 7, 10, 17, 19 and 20 with a franchise attorney and accountant.
Step 3: Estimate your budget. Use our SBA loan calculator for early payment estimates, which are for planning only and are not an offer or approval.
Step 4: Find a site or a resale. Gather the lease, contractor bids or the seller’s financial statements.
Step 5: Build your business plan. Prepare monthly projections that include royalties, marketing fees, delivery costs and seasonality.
Step 6: Apply for financing. Submit your application with the FDD, franchise agreement, financial statements and projections.
Step 7: Close and open. Coordinate the franchise agreement, lease and loan closing, then complete training and prepare for opening.
Great Alaska Pizza Company Franchise Loan FAQs
How much does a Great Alaska Pizza Company franchise cost?
The company does not publish its investment range on its public pages. Item 7 of the current FDD gives the estimated initial investment, which depends on the site, size and build-out.
What is the franchise fee?
The initial franchise fee is disclosed in Item 5 of the FDD. Ask the franchisor for the current figure and whether reduced fees apply to additional restaurants.
What royalty does Great Alaska Pizza Company charge?
The royalty and any marketing contributions are listed in Item 6. Confirm the rates before you build projections.
How much liquid capital or net worth do I need?
The franchisor sets its own financial qualifications. Lenders will also expect enough cash for the equity injection plus reserves.
Can I use an SBA loan as my Great Alaska Pizza Company franchise loan?
Yes, subject to approval. The brand is listed on the SBA Franchise Directory under code S5768.
What does the SBA directory note mean?
When real estate where the restaurant operates secures the SBA-guaranteed loan, the Collateral Assignment of Lease Agreement may not be executed. It protects the lender’s position when the owner holds the property.
Can I buy an existing location?
If one is available and the franchisor approves the transfer, a resale can be financed with SBA or conventional loans based on its actual financial history.
Can I finance the pizza ovens separately?
Yes. Ovens, mixers, refrigeration and make lines can be financed or leased on their own.
Does the franchisor offer financing?
Item 10 of the FDD discloses any franchisor financing. Most buyers use SBA or conventional loans.
How long is the franchise term?
The term, renewal and transfer rules are in Item 17. Lenders look for a franchise term and lease that cover the loan term.
Final Thoughts
A Great Alaska Pizza Company franchise loan starts with the FDD. The brand’s local history and SBA listing give buyers a path to financing, but the numbers that drive the loan are in Items 5, 6 and 7. Budget carefully for Alaska construction, seasonality and delivery.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing programs.
