How to Finance a Simple Simon’s Pizza Franchise: Oklahoma Roots
By Chris Cornella
A Simple Simon’s Pizza franchise loan typically finances a modest pizza restaurant in a small town, not a big-city storefront. Simple Simon’s has served rural communities since 1983, and its franchise program focuses on the small towns of Arkansas, Kansas, Missouri, Oklahoma and Texas, where real estate, labor and overhead tend to cost less.
This article covers what the franchisor publishes about its royalty and liquid capital requirement, how lenders look at a small-town pizza restaurant, where SBA 7(a), SBA 504 and conventional loans fit, and how financing differs when you buy one of the existing stores the brand offers for sale.
US Professional Funding is not affiliated with, sponsored by or endorsed by Simple Simon’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 lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) with a qualified franchise attorney and accountant.
Simple Simon’s Pizza Franchise Loan at a Glance
- Royalty: 5%, which the franchisor lists as its combined fee and royalties.
- Advertising: the franchisor says there is no advertising co-op requirement.
- Minimum liquid capital: $75,000, as of August 1, 2024, according to the franchisor.
- Initial franchise fee and total investment: not published on the franchise pages we reviewed; see Items 5 and 7 of the current FDD.
- System size: the company describes itself as over 200 stores strong, with its corporate office in Glenpool, Oklahoma.
- Formats: dine-in, high-volume carryout, or a combination of both.
- SBA Franchise Directory: listed as Simple Simon’s Pizza (code S1574), with no additional notes.
What Is Simple Simon’s Pizza?
Simple Simon’s Pizza has been operating since 1983, and the company describes its roots as being in rural communities across America’s heartland. Its corporate office is in Glenpool, Oklahoma, and it says it is over 200 stores strong.
Small-town positioning. The franchise program targets towns that may lack reliable pizza options. The company points to lower real estate prices, more affordable labor and lower overhead in small towns, and it says it offers affordable build-out options designed for smaller towns. Its Kansas page alone lists over 100 towns as available franchise locations.
Long-tenured owners. The brand highlights franchisees who have operated for decades, including owners with 20, 30 and even 40 years in the system, and families that have brought the next generation into the business.
Why lenders view it the way they do. Lenders generally like a long-running brand with modest build-out costs and a simple menu. The other side of the picture is that small-town restaurants depend on a limited customer base, so lenders look hard at the local market, the owner’s community ties and the store’s actual or projected sales.
Simple Simon’s Pizza Franchise Costs
Initial franchise fee. The franchisor’s pages we reviewed do not state the initial franchise fee in dollars, though a featured franchisee describes it as lower than at many other franchises. Item 5 of the current FDD lists the fee and any discounts.
Real estate and build-out. Most stores lease space in a small-town commercial building or strip center. Build-out may include a kitchen, counter, dining area for dine-in formats and signage. Costs vary with the condition of the building and whether the site was previously a restaurant.
Equipment. Pizza ovens, dough mixers, prep tables, walk-in or reach-in refrigeration, a hood and ventilation system, point-of-sale technology and smallwares.
Opening costs and working capital. Opening inventory, training expenses, insurance, deposits, grand opening marketing and cash to cover payroll and operating costs until sales stabilize.
Total investment. Simple Simon’s does not publish a total investment range on its franchise pages. Request the FDD after your application is approved and review the Item 7 table, which lists each cost category with low and high estimates. Your loan request should tie back to that table.
Ongoing Fees and How They Affect Your Loan
Royalty. The franchisor lists a combined fee and royalty of 5%. Confirm in Item 6 how it is calculated and whether any other recurring fees apply, such as technology or software fees.
Advertising. The company says there is no advertising co-op requirement and that marketing support is available. Owners should still budget for local marketing, especially in the first months.
Purchasing. The franchisor says it offers national account pricing and that its ingredients are relatively simple, inexpensive and turn over weekly, which helps manage food costs.
How lenders factor them in. Lenders deduct the royalty and other fees from projected sales before measuring how much cash is left to cover loan payments. A lower fee load can help a Simple Simon’s Pizza franchise loan qualify, but lenders still test the projections against slower months.
Franchisor Requirements for New Owners
- Liquid capital: a minimum of $75,000, as of August 1, 2024, according to the franchisor.
- Application: includes references, financial information and permission to pull a credit report.
- Disclosure: after approval, candidates receive the FDD.
- Discovery Day: prospects visit the corporate office in Glenpool, tour stores and meet franchisees.
- Training: an initial training program plus ongoing sessions on operations, leadership, financial controls and brand standards, backed by an operations manual that includes P&L sheets.
The company says the process can move from first inquiry to opening in as few as 6 months. A net worth requirement is not published; ask the franchisor.
Ways to Own a Simple Simon’s Pizza
A new store. Financing covers the franchise fee, build-out, equipment and working capital. Read more about franchise start-up financing.
Buying an existing store. The franchisor lists existing businesses for sale on its franchising site, including stores in Missouri, Oklahoma and Texas, which it describes as ready for immediate operation. It also says existing businesses may qualify for easier financing. Our guide to buying a franchise resale explains how transfers work.
Multiple stores. Some families operate more than one store, and some across two states. Each additional store is financed on its own merits, often supported by the first store’s results.
Licensing. The franchising site also has a separate licensing section. Ask the company how that option differs from a franchise, because lenders will review whichever agreement you sign.
Financing Options for a Simple Simon’s Pizza Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine the franchise fee, build-out, equipment and working capital, or fund the purchase of an existing store.
SBA 504 loans. If you buy the building, an SBA 504 loan can finance owner-occupied real estate and long-lived equipment. In small towns, buying a building can sometimes be practical.
Conventional term loans. Owners with good credit and collateral may qualify for conventional business loans, especially for a second store.
Equipment financing. Ovens, mixers, refrigeration and point-of-sale systems can often be financed separately. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. Pizza sales can swing with school calendars, sports seasons and holidays. A reserve or line of credit helps cover payroll and inventory in slower weeks. Learn about franchise working capital.
Seller financing on resales. When buying an existing store, the seller may carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit how they are structured.
SBA Loans for Simple Simon’s Pizza Franchisees
SBA-guaranteed loans are made by participating lenders. For a franchise, the SBA Franchise Directory simplifies the lender’s review of the brand’s agreements.
Directory listing. Simple Simon’s Pizza appears on the SBA Franchise Directory under code S1574, with no additional notes. A listing means the brand’s documents have been reviewed for eligibility. It is not an endorsement or a loan approval.
Program size and tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Prepare a business plan, personal financial statement, tax returns and the FDD. Our SBA loan calculator can help with early payment estimates, which are for planning only. See also our guide to a franchise business plan for an SBA loan.
How Lenders Evaluate a Simple Simon’s Pizza Deal
Personal credit and financial history. Expect a credit review, tax returns, a personal financial statement and a personal guarantee.
Liquidity. The franchisor’s $75,000 minimum is a starting point; lenders also look for an equity injection and reserves after closing.
Restaurant and management experience. Prior restaurant or management experience helps, along with completing the brand’s training.
Business plan and projections. Projections should reflect the town’s population, local competition, delivery and carryout demand, labor costs and the 5% royalty.
The FDD and franchise agreement. Lenders review the term, renewal and transfer terms in Item 17, any franchisor financing in Item 10, and Items 3 and 4. The company says its FDD includes Item 19 historical financial performance data; review it with your accountant. Our guide to how lenders read an FDD explains what they focus on.
Site and lease. Lenders want a lease long enough to cover the loan term, with renewal options.
Historical financials on a resale. For an existing store, expect to provide several years of profit and loss statements, sales reports and tax returns.
Kitchen and Equipment Deep Dive
A Simple Simon’s store runs on a compact pizza kitchen: ovens, dough mixers, make lines, refrigeration, a hood system and a point-of-sale system for carryout and dine-in orders. When buying an existing store, have the equipment inspected; older ovens or refrigeration may need replacement soon after closing, and lenders may want that cost built into the loan.
Multi-Unit Growth
Owners who do well in one town sometimes add a second store nearby. Lenders typically look at the first store’s track record before financing the next, and they will want consolidated financial statements as you grow. Read our article on multi-unit franchise financing.
Real-World Scenarios
A first-time owner opening in a small town. A local resident with restaurant management experience leases a former restaurant space and uses an SBA 7(a) loan for the franchise fee, equipment and working capital.
A buyer purchasing a listed store. A buyer acquires one of the stores the franchisor lists for sale. The lender underwrites on the store’s history, and the seller carries a subordinated note.
A family adding a second store. An owner with years in the system buys a building in a nearby town with an SBA 504 loan and finances the equipment separately.
Common Mistakes to Avoid
- Assuming the $75,000 liquid capital minimum covers the full equity a lender will require
- Borrowing before reviewing the Item 7 table
- Overestimating sales in a small market
- Skipping an equipment inspection when buying an existing store
- Signing a lease shorter than the loan term
- Leaving too little working capital for the first months
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Simple Simon’s Pizza Franchise
Step 1: Submit an application. Provide references, financial information and credit authorization.
Step 2: Review the FDD. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Attend Discovery Day. Visit Glenpool, tour stores and talk with franchisees.
Step 4: Choose a new or existing store. Compare a new build with the existing stores for sale.
Step 5: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional options.
Step 6: Close and open. Complete training, keep a working capital reserve and plan your local launch.
Simple Simon’s Pizza Franchise Loan FAQs
How much does a Simple Simon’s Pizza franchise cost?
The franchisor does not publish a total investment range on its franchise pages. Item 7 of the current FDD lists the estimated initial investment.
What royalty does Simple Simon’s Pizza charge?
The franchisor lists a combined fee and royalty of 5%, and says there is no advertising co-op requirement.
How much liquid capital do I need?
The franchisor lists a minimum of $75,000 in liquid capital as of August 1, 2024.
Is Simple Simon’s Pizza eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S1574. Each loan still depends on the borrower and lender approval.
Can I buy an existing Simple Simon’s Pizza?
Yes. The franchisor lists existing stores for sale, and a resale lets a lender review real sales history.
Can a first-time owner get a Simple Simon’s Pizza franchise loan?
Yes, with franchisor and lender approval. Management experience, liquidity and a solid local plan help.
Does Simple Simon’s offer financing?
The company says its franchise team guides financing options and helps connect prospective owners with lenders. Check Item 10 of the FDD for any direct financing.
How long does it take to open?
The company says the process can take as few as 6 months from first inquiry to opening.
How long is the franchise term?
Item 17 of the FDD lists the term, renewal and transfer conditions. Make sure your loan and lease fit within it.
What documents do I need to apply?
A personal financial statement, tax returns, resume, business plan, the FDD and franchise agreement, and the lease or purchase agreement.
Final Thoughts
A Simple Simon’s Pizza franchise loan is usually a right-sized restaurant loan for a small market. Know the 5% royalty and liquidity requirement, review the FDD, build realistic small-town projections and compare new and existing stores before you borrow.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing programs.
