How to Finance a Slice House Franchise: Multi-Style Pizzeria
By Marc Cornella
A Slice House franchise loan finances a fast-casual pizzeria built around a world pizza champion’s recipes and several regional pizza styles sold by the slice and by the pie. Because Slice House by Tony Gemignani is listed on the SBA Franchise Directory, many buyers can consider SBA 7(a) financing alongside conventional and equipment loans.
This article covers how the concept works, the cost categories to confirm in the Franchise Disclosure Document (FDD), the two notes attached to the brand’s SBA listing and how lenders are likely to evaluate a new or existing restaurant.
US Professional Funding is not affiliated with, sponsored by or endorsed by Slice House by Tony Gemignani; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Slice House Franchise Loan at a Glance
- Concept: fast-casual pizzeria serving New York, Sicilian, Grandma, Detroit and California style pizza, plus pasta, wings and salads.
- Origin: started as a single slice shop in San Francisco’s North Beach neighborhood.
- Formats: traditional restaurants, plus non-traditional venues such as stadium and arena kiosks.
- Franchise fee, royalty and marketing fund: not verified from the franchisor’s own materials; see Items 5 and 6 of the current FDD.
- Estimated initial investment: see the Item 7 table in the current FDD.
- SBA Franchise Directory: listed under code S7287, with notes about the lease assignment document and a real estate purchase option.
What Is Slice House?
Slice House is the fast-casual pizza brand of Tony Gemignani, a world pizza champion and pizza-making instructor. It began as a slice shop in San Francisco’s North Beach next to the founder’s flagship pizzeria and grew into restaurants and venue kiosks before launching a national franchise program.
The menu’s hook is variety. A single restaurant offers several regional styles, including thin New York slices, thick square Sicilian and Grandma pies, crispy-edged Detroit pizza and California-style options, along with gluten-free, vegetarian and vegan choices. Many locations also serve craft beer and wine, and the brand has given new restaurants their own signature specialty pizza.
Formats. Traditional restaurants offer dine-in, takeout and delivery. The brand also operates in stadiums, arenas and other high-traffic venues. Ask the franchisor which formats are offered to new franchisees and how each changes the investment.
How lenders view the concept. Pizza is a durable category with strong takeout and delivery demand, and a chef-driven brand can help a new unit stand out. Lenders will still underwrite each restaurant on its own projections, lease and operator, especially in markets where the brand is new.
Slice House Franchise Costs
We could not verify the franchise fee or Item 7 investment range from the franchisor’s own published materials, so this section explains the cost categories rather than quoting figures. Use the current FDD for exact amounts.
Initial franchise fee. Item 5 lists the initial fee and any development fee for multi-unit agreements, including whether fees are reduced for additional units.
Real estate and build-out. Most units are leased. Build-out typically covers a hood and fire suppression system, gas and electrical upgrades for the oven package, plumbing, a display counter for slices, dining room finishes and restrooms. Second-generation restaurant space can lower costs, so compare sites carefully.
Equipment. Pizza ovens are the centerpiece, supported by dough mixers, prep tables, walk-in and reach-in refrigeration, heated display cases, a beverage system and point-of-sale technology.
Opening costs and working capital. Training, opening inventory, pre-opening payroll, grand opening marketing and insurance come before revenue, and Item 7 typically includes additional funds for the first months.
Total investment. Typical Item 7 line items to confirm:
- Initial franchise fee
- Lease deposits and pre-opening rent
- Leasehold improvements and construction
- Ovens, kitchen equipment and smallwares
- Furniture, fixtures and signage
- Technology and point-of-sale systems
- Opening inventory and supplies
- Training, licenses, permits and professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 lists royalties, marketing or brand fund contributions, technology fees, transfer and renewal fees. Third-party delivery commissions are not franchise fees, but they also cut into margins and belong in your projections.
How lenders factor fees in. Lenders subtract royalties, marketing contributions and other percentage-of-sales fees before measuring debt service coverage. Show each fee separately so the lender can see what remains to repay the loan.
Remodel obligations. Ask whether the franchise agreement requires periodic remodels or equipment upgrades, and plan for them in a Slice House franchise loan or a later financing.
Franchisor Requirements for New Owners
We could not verify the brand’s minimum net worth or liquid capital requirements from its own published materials. The franchisor shares them during discovery, and lenders will want to see that your personal financial statement meets them with room to spare.
Restaurant or multi-unit management experience helps both the franchisor and the lender. Some Slice House franchisees sign multi-unit development agreements, so ask whether single-unit agreements are available in your market.
The approval process. Expect an inquiry, discovery calls, FDD review, meetings with leadership, approval and signing, then site selection, lease negotiation, construction and training.
Ways to Own a Slice House
A new restaurant. Most opportunities are new units. Financing covers the franchise fee, build-out, equipment and working capital, and lenders rely on projections. See our franchise start-up financing page.
Buying an existing restaurant. As the system grows, some franchised restaurants may come up for sale. Transfers require franchisor approval under Item 17, and the lender will underwrite the restaurant’s actual sales. Learn about franchise restaurant acquisition loans.
Multi-unit development. A development agreement grants a territory and a schedule of openings. Each unit is usually financed as it is built.
Financing Options for a Slice House Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, SBA 7(a) loans can cover the franchise fee, build-out, equipment and working capital in one loan.
SBA 504 loans. If you buy a freestanding building or a commercial condo for the restaurant, an SBA 504 loan can finance the real estate and long-lived equipment.
Conventional term loans. Experienced operators with strong liquidity may use conventional business loans, particularly for multi-unit groups.
Equipment financing. Deck or conveyor ovens, mixers, refrigeration, heated slice displays and draft beer systems can be financed separately. See restaurant equipment financing and leasing.
Working capital and lines of credit. Sales can swing with sports seasons, school calendars and holidays. A line of credit can cover payroll and food costs during the ramp-up or a slow stretch. See our restaurant working capital options.
Seller financing on resales. A seller may carry part of the price on a resale. Any seller note is typically subordinate to the senior lender, and SBA programs may limit its terms.
SBA Loans for Slice House Franchisees
SBA lenders generally require a brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to its franchisees. The listing confirms that the franchise documents were reviewed for eligibility; it does not approve any borrower.
The brand’s listing. Slice House by Tony Gemignani is listed under code S7287 with two notes.
Note 1: the lease assignment document. When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Conditional Assignment and Assumption of Lease may not be executed. That document usually lets the franchisor take over a franchisee’s lease if the franchise ends. It works when you rent. But if you or an affiliate own the building and pledge it as collateral, there is no third-party lease to assign, and the document must not interfere with the lender’s collateral. For more on these documents, read about restaurant lease assignments.
Note 2: purchase options. The franchisor may not enforce a purchase option on the real estate if it is owned by the franchisee or an affiliate and used as collateral for the SBA loan. In plain terms, if you own the property and it secures your SBA loan, the franchisor cannot use a contractual option to buy that property out from under the lender.
Loan size and tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Prepare the FDD, franchise agreement, lease or letter of intent, contractor bids, equipment quotes and monthly projections. Our SBA loan calculator can help with early payment estimates, which are for planning only.
How Lenders Evaluate a Slice House Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus personal guarantees from owners.
Net worth and liquidity. Lenders look for your equity injection plus reserves after closing to handle the ramp-up.
Industry and management experience. Restaurant management, especially pizza or high-volume quick service, carries weight. Without it, a strong general manager and the franchisor’s training plan matter more.
Business plan and projections. Model the mix of slices, whole pies, catering and delivery, plus beer and wine sales where allowed. Show food and labor cost assumptions, delivery commissions and the royalty and marketing fees from Item 6.
The FDD and franchise agreement. Lenders focus on Items 5, 6, 7 and 17. Review Items 3 and 4, and check whether Item 19 includes financial performance representations. Our guide on how lenders read the FDD explains what matters.
Site and lease. Lenders review lease length, renewal options, co-tenancy, parking and visibility, and want the lease term to cover the loan.
Historical financials for resales. For an existing restaurant, expect to provide several years of profit and loss statements, sales reports and tax returns.
Ovens and Kitchen Equipment
Serving several pizza styles means the kitchen must handle different doughs, pans and bake profiles. Ovens, dough mixers, sheeters or presses, proofing space, pan inventory for Detroit and Sicilian pies, refrigerated prep tables and heated slice displays are all central. Ventilation and fire suppression must match the oven package. Because equipment is a large share of the budget and holds collateral value, lenders like detailed vendor quotes.
Multi-Unit Growth and Development Agreements
Development agreements set a schedule of openings in a defined territory. Missing deadlines can cost territory rights, so the financing plan should match the schedule. The first unit is typically underwritten on projections and the owner’s strength, and later units can lean on its results. Read about area development agreement financing to plan the sequence.
Real-World Scenarios
A restaurant manager opening a first unit. A former general manager signs for one restaurant, leases a second-generation pizza space and uses an SBA 7(a) loan for the franchise fee, build-out, ovens and working capital.
A multi-unit group with a development schedule. A group signs for several units, finances the first with an SBA 7(a) loan and plans conventional or SBA financing for later units once the first has a track record.
An owner buying the building. A franchisee buys a small freestanding building with an SBA 504 loan and works with an attorney on the lease assignment and purchase option notes.
A buyer acquiring an existing restaurant. A buyer purchases an open restaurant from a franchisee, and the lender underwrites its historical sales and the remaining franchise and lease terms.
Common Mistakes to Avoid
- Picking a site without confirming hood, gas and electrical capacity for the oven package
- Overlooking the SBA directory notes when buying the building
- Ignoring delivery commissions and Item 6 fees in projections
- Committing to a development schedule without a funding plan for each unit
- Leaving too little working capital for the ramp-up
For more pitfalls, read about common restaurant loan mistakes.
Next Steps to Finance Your Slice House Franchise
Step 1: Study the FDD. Focus on Items 5, 6, 7, 10, 17 and 19, and review Items 3 and 4.
Step 2: Confirm your unit commitment. Decide on a single unit or development agreement and confirm the franchisor’s net worth and liquidity requirements.
Step 3: Talk to a financing specialist. Learn how large a Slice House franchise loan you can support and what equity lenders will expect.
Step 4: Secure a site. Confirm utilities, ventilation and lease terms, and negotiate improvement allowances.
Step 5: Build your loan package. Assemble projections, contractor bids, equipment quotes, the lease and franchise documents.
Step 6: Close and open. Coordinate construction draws, equipment delivery, hiring and training with your opening date.
Slice House Franchise Loan FAQs
How much does it cost to open a Slice House franchise?
The estimated initial investment is in Item 7 of the current FDD. Site size, build-out, oven package and local costs drive the total.
What is the Slice House franchise fee?
Item 5 of the FDD discloses it. We could not verify it from the franchisor’s own materials.
What royalty does Slice House charge?
Royalty and marketing fund contributions are disclosed in Item 6.
How much liquid capital or net worth do I need?
The franchisor shares its requirements during discovery, and lenders also expect an equity injection and reserves.
Can I get an SBA loan for a Slice House franchise?
Yes, subject to approval. The brand is listed on the SBA Franchise Directory under code S7287.
Can I finance the pizza ovens separately?
Yes. Ovens and other kitchen equipment can often be financed with equipment loans or leases.
Does the franchisor offer financing?
Check Item 10 of the FDD for any financing the franchisor or its affiliates offer.
Can I buy an existing Slice House?
Yes, if one is for sale and the franchisor approves the transfer.
Can a first-time owner get a Slice House franchise loan?
Yes, if the franchisor approves you and you meet lender standards. Restaurant management experience helps.
Can I open multiple locations?
Yes, through a development agreement if the franchisor approves; each unit is usually financed as it opens.
How long is the franchise term?
Item 17 of the FDD lists the term, renewal and transfer conditions. Lenders want the franchise and lease terms to cover the loan.
Final Thoughts
A Slice House restaurant pairs a chef-driven pizza brand with the familiar economics of a fast-casual pizzeria. Buyers who start from the FDD, choose a site that fits the oven package, understand the SBA directory notes and keep healthy reserves give their financing the best chance of success.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
