How to Finance a Schmizza Franchise: Pizza by the Slice
By Chris Cornella
A Schmizza franchise loan finances a Pacific Northwest pizza concept built on pizza by the slice, and in its larger format, a pub-style dining room with beer on tap. That mix means the financing plan may need to cover pizza ovens and a quick-service counter, a dining room build-out and, for a public house, a liquor license and draft system.
This article walks through what to verify in the Franchise Disclosure Document (FDD), how the brand’s SBA Franchise Directory listing and its two notes affect your loan, how lenders view a regional pizza brand and the main financing tools buyers use for a new or existing location.
US Professional Funding is not affiliated with, sponsored by or endorsed by Schmizza or Pizza Schmizza; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current FDD with a franchise attorney and an accountant before you sign.
Schmizza Franchise Loan at a Glance
- Concept: Pizza Schmizza, an Oregon-based pizza brand known for pizza sold by the slice and whole pies, plus salads and beer.
- Formats: quick-service pizzerias and Schmizza Public House, a pub-style version of the concept.
- Costs and fees: we could not verify a current franchise fee, royalty or investment range from the franchisor’s own materials, so confirm them in Items 5, 6 and 7 of the current FDD.
- Key financing needs: restaurant build-out, pizza ovens and kitchen equipment, a beer or liquor license for a public house, opening inventory and working capital.
- SBA Franchise Directory: listed as Schmizza under code S1318, with notes on real estate purchase options and master franchise agreements.
What Is Schmizza?
Schmizza is the franchise brand behind Pizza Schmizza, a pizza chain rooted in the Portland, Oregon area. The concept is built around fast, casual pizza by the slice, with whole pies, salads and beer for customers who want to stay. Its larger Schmizza Public House format is designed as a more upscale, pub-style restaurant with a bigger dining room and a fuller drink program.
The brand is regional, with its footprint centered in Oregon. For a buyer, that means a concept with local name recognition in its home market but less brand awareness elsewhere, which affects how a lender thinks about sales ramp-up in a new market.
How lenders see the brand. Pizza by the slice offers quick service, lunch traffic and relatively simple operations, while a public house adds a dining room, alcohol and evening business. Lenders weigh the format you choose, the strength of your site and your own restaurant experience, and they pay close attention to whether the location is inside or outside the brand’s home region.
Schmizza Franchise Costs
We were unable to verify the brand’s current fee and investment figures from its own materials, so every number in your plan should come from the current FDD and your own bids.
Initial franchise fee. Item 5 of the FDD states the fee, when it is due and whether any part is refundable. Because it is an intangible cost, lenders often finance it together with tangible assets or expect it to come from your own funds.
Real estate and build-out. Most pizzerias lease space in strip centers, downtown storefronts or neighborhood retail. Build-out covers the kitchen, hood and fire suppression, walk-in cooler, front counter and seating. A public house adds a larger dining room, a bar and draft lines, which raises the budget.
Equipment. Expect pizza ovens, dough mixers, refrigerated make tables, a walk-in cooler and freezer, slice display warmers, point-of-sale systems and, for a public house, a draft beer system and bar equipment.
Opening costs and working capital. Food and beverage inventory, staff training, pre-opening marketing, deposits, licenses and insurance all come before the first sale, and the restaurant needs cash to cover payroll and rent while sales build.
Total investment. Item 7 of the FDD sets out the estimated initial investment as a table of line items, often separately for each format. When you review it, look for:
- Initial franchise fee
- Leasehold improvements and construction
- Kitchen equipment, ovens and smallwares
- Furniture, fixtures and decor
- Signage and point-of-sale technology
- Beer, wine or liquor license where applicable
- Opening inventory
- Training travel and expenses
- Rent and security deposits, licenses and insurance
- Additional funds for the initial operating period
Make sure your loan request matches the format you are opening.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any advertising or brand fund contribution, technology fees, transfer and renewal fees and other recurring charges. Ask whether fees are calculated on food sales only or on alcohol sales as well, since that matters for a public house.
How lenders factor them in. A lender deducts royalties and fees from projected sales before measuring how comfortably the restaurant can cover debt payments, rent and labor. Pizza margins depend heavily on food costs, especially cheese, so projections should use realistic cost of goods and show how the business handles price swings.
Franchisor Requirements for New Owners
We could not verify published net worth or liquid capital minimums for this brand. Expect the franchisor to look for candidates with restaurant or multi-unit management experience, enough personal capital to open without strain and a commitment to day-to-day operations. Ask the franchisor for its current financial qualifications, and review Item 11 of the FDD for training and opening support.
The approval process. Most franchisors move candidates through an application, an FDD review, conversations with existing franchisees, a visit to see operations and final approval. Start financing conversations early so your loan, lease and franchise approval line up.
Ways to Own a Schmizza
Opening a new restaurant. A new pizzeria or public house is a startup loan built on projections and your experience. Our page on restaurant start-up financing explains how these requests are structured.
Buying an existing location. An existing restaurant gives a lender real sales history to underwrite, but it requires franchisor approval of the transfer and a careful look at the remaining lease term. Our page on franchise restaurant acquisition financing covers how these purchases are financed.
Converting an existing pizzeria. An independent pizza operator may ask whether the franchisor will allow a conversion. If it does, financing usually focuses on remodeling, new signage and any required equipment.
Master franchise arrangements. Under the brand’s SBA listing, applicants operating under a master franchise agreement are not eligible for SBA financing, so anyone considering that role should plan on conventional funding.
Financing Options for a Schmizza Franchise
SBA 7(a) loans. For eligible borrowers, an SBA 7(a) loan can combine the franchise fee, build-out, equipment, inventory and working capital in one loan.
SBA 504 loans. If you buy the building, an SBA 504 loan can finance owner-occupied real estate and long-lived equipment. Note the directory’s purchase option rule explained below.
Conventional term loans. Experienced operators or buyers with strong collateral may use a conventional business loan, which is also the main route for anyone ineligible for SBA financing.
Equipment financing. Pizza ovens, mixers, make tables, walk-ins and draft systems can often be financed separately, with the equipment as collateral. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. A new restaurant needs cash for payroll and inventory during ramp-up, and a public house may need funds for its liquor license and opening stock. Learn more about restaurant working capital.
Seller financing on resales. A seller may carry part of the price on an existing restaurant. Any seller note is typically subordinate to the senior loan, and SBA rules can limit how it is structured.
SBA Loans for Schmizza Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to one of its franchisees. Schmizza is listed under code S1318, which means the franchise relationship has been reviewed for eligibility. A listing does not approve any borrower.
What the directory notes mean. The listing carries two notes:
- Real estate purchase option. The franchisor may not enforce a purchase option on real estate owned by the franchisee or an affiliate when that property is taken as collateral for an SBA loan. If you own your building and pledge it, the franchisor cannot use a purchase option to take it while the SBA loan is in place.
- Master franchise agreements. Applicants operating under a master franchise agreement are not eligible for SBA financial assistance. Individual unit franchisees are not affected by this note.
Application tips. Bring the current FDD, your lease or letter of intent, contractor bids, equipment quotes and projections for your specific format. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our SBA loan calculator can help you estimate payments for planning only.
How Lenders Evaluate a Schmizza Franchise Loan
Personal credit and financial history. Expect a review of your credit, tax returns, a personal financial statement and a personal guarantee.
Net worth and liquidity. Lenders want your equity contribution plus reserves to carry the restaurant through its opening months.
Industry and management experience. Pizza, quick-service or bar and restaurant management experience is the strongest support, and alcohol service experience matters for a public house.
Business plan and projections. Build projections around the format you are opening, lunch slice traffic, evening and weekend dining, delivery and takeout, and food costs. Be realistic about ramp-up if your market is new to the brand.
The FDD and franchise agreement. Lenders review the term, renewal and transfer terms in Item 17, any franchisor financing in Item 10 and whether Item 19 includes financial performance representations. Review Items 3 and 4 as part of your own due diligence. Our article on how lenders read a Franchise Disclosure Document explains what matters.
Site and lease. Lenders look at visibility, parking, nearby offices and schools for lunch traffic and whether the lease runs at least as long as the loan.
Historical financials for resales. For an existing restaurant, expect to provide several years of profit and loss statements and sales reports.
Pizza Kitchen and Public House Equipment
The kitchen centers on the ovens, which drive both speed and quality for slice service. Dough mixers, proofing and storage, refrigerated prep tables and slice warmers round out the line. A public house adds a bar, draft beer system, glass washers and more seating. Equipment financing lets you keep cash for opening needs, and the equipment itself serves as collateral.
Multi-Unit Growth
Operators who succeed with one restaurant may add a second location or a different format. Lenders can then underwrite existing cash flow alongside the new unit, and each new restaurant requires franchisor approval. Our article on multi-unit franchise financing explains how growth loans are structured.
Real-World Scenarios
A restaurant manager opening a slice shop. An experienced manager uses an SBA 7(a) loan for build-out, ovens and working capital for a pizzeria near offices and a college campus.
An operator opening a public house. A bar and restaurant veteran finances a larger build-out and draft system, budgeting separately for the liquor license and a longer ramp-up.
A buyer acquiring an existing location. A buyer purchases a franchisee’s restaurant, the lender underwrites its sales history and the seller carries a subordinate note.
Common Mistakes to Avoid
- Using one budget for both formats instead of the FDD’s figures for your format
- Forgetting liquor license costs and timing for a public house
- Projecting home-market sales in a market where the brand is less known
- Underestimating food cost swings
- Signing a lease shorter than the loan term
- Assuming SBA eligibility under a master franchise agreement
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Schmizza Franchise
Step 1: Request and review the FDD. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Choose your format. Decide between a pizzeria and a public house based on your experience and market.
Step 3: Build a budget. Start from Item 7 and add contractor bids, equipment quotes and a working capital cushion.
Step 4: Talk with a financing specialist early. Learn how a Schmizza franchise loan could be structured before you commit to a site.
Step 5: Secure your site and licenses. Negotiate a lease that fits your loan term and start any liquor license process.
Step 6: Apply and close. Submit your financial statements and projections, and coordinate closing with franchisor approval and construction.
Schmizza Franchise Loan FAQs
How much does a Schmizza franchise cost?
We could not verify a current investment range from the franchisor’s own materials. Item 7 of the current FDD gives the estimate for each format.
What is the Schmizza franchise fee and royalty?
Check Item 5 for the initial fee and Item 6 for the royalty and other ongoing fees.
Can I get an SBA loan for a Schmizza restaurant?
Yes, if you qualify. The brand is listed on the SBA Franchise Directory under code S1318. Master franchise agreement holders are not eligible.
What is the purchase option note?
If you own your building and pledge it as SBA collateral, the franchisor may not enforce a purchase option on that property.
Can I finance pizza ovens separately?
Yes. Ovens, mixers, refrigeration and draft systems can often be financed through equipment loans or leases.
Can I buy an existing location?
Yes, with franchisor approval. Lenders will review the restaurant’s sales history and lease.
Does the franchisor offer financing?
Review Item 10 of the current FDD to see whether the franchisor offers any financing.
Can a first-time owner qualify?
Possibly, with strong restaurant management experience, personal capital and a solid plan.
Does the FDD include financial performance information?
Check Item 19 of the current FDD, and rely on actual financial statements when buying an existing restaurant.
Final Thoughts
A Schmizza franchise loan can be a straightforward pizzeria startup or a fuller restaurant and bar project, depending on the format. Buyers who verify costs in the current FDD, understand the SBA directory notes and plan for ramp-up in their market will be in the strongest position with lenders.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
