California Pizza Kitchen Franchise Costs, Fees & Owner Salary (2023)

California Pizza Kitchen (CPK), a renowned franchise in the restaurant industry, has been a trailblazer in the world of creative and innovative pizzas since its inception. Founded in 1985 by Larry Flax and Rick Rosenfield in Beverly Hills, California, CPK has earned a reputation for its fusion of California cuisine with traditional pizza, setting the stage for a fresh and unique dining experience. The franchise's headquarters is located in Playa Vista, California, a testament to its California-inspired roots.

California Pizza Kitchen began offering franchise opportunities in 1987, marking a significant milestone in its growth and expansion efforts. CPK is celebrated for its diverse menu, which includes an array of pizzas, pastas, salads, and unique appetizers, all infused with bold and distinctive flavors. 

What sets CPK apart from the competition is its commitment to culinary creativity, with a focus on using fresh and high-quality ingredients. The franchise has continuously pushed the boundaries of pizza innovation by introducing unconventional toppings and combinations that appeal to a wide range of tastes, from the adventurous to the traditional.

Initial Franchise Fee

The Initial Franchise Fee is $50,000, payable upon signing the Franchise Agreement.

Royalty

The Royalty Fee is 5% of Gross Sales, paid monthly. For CPK Restaurants operated in kiosks, the Royalty is reduced to 3% of Gross Sales.

Brand Fund Contribution

The Brand Fund Contribution is 1% of Gross Sales, due on the 10th day of each reporting period.

Transfer Fee

The Transfer Fee for the Franchise Agreement and the Development Agreement is $10,000, due upon demand.

Renewal Fee

The Renewal Fee is $5,000, payable upon execution of a renewal franchise agreement.

California Pizza Kitchen (CPK) provides a structured training program for franchisees, focusing on the skills and knowledge necessary for successful restaurant operation. The training encompasses various aspects of restaurant management, including safety, sanitation, back-of-house (BOH) operations, management routines, station training, skill building, and front-of-house (FOH) management.

Training Program Overview

• Safety & Sanitation; BOH Round Robin: The first week includes 10-20 hours of classroom training and 30-40 hours of on-the-job training, covering safety protocols, sanitation standards, and an overview of BOH operations.
• Management Routines & BOH Station Training (Foundational Items): The second week continues with similar hours dedicated to management routines and foundational BOH station training.
• Management Routines & BOH Station Training (Station Skills & Bail Out): The third week advances to more detailed BOH station training, including station skills and emergency procedures.
• Management Skill Building & FOH Management Training: The fourth week shifts focus to management skill building and FOH management, preparing franchisees for comprehensive restaurant oversight.

Training can be conducted virtually, at a CPK Restaurant, or the Restaurant Support Center (RSC) in Costa Mesa, California, depending on the franchisee's needs and CPK's assessment. The length and specific content of the management training program are tailored on a case-by-case basis, factoring in the franchisee's prior experience.

Additional Training and Support

• Franchisees have the option to request self-training or third-party training for certain components, subject to CPK's approval.
• CPK's NSO Team may assist in training personnel and supporting the restaurant opening, particularly for franchisees opening their first CPK Restaurant.
• Franchisees are responsible for all costs associated with training, including travel, lodging, meals, and training materials.

California Pizza Kitchen grants franchisees a "Protected Territory" around their restaurant location, where the franchisor agrees not to operate or allow others to operate a CPK Restaurant. The size and boundaries of this territory are determined based on factors such as demographics, population density, and the competitive environment, and they may be described using specific street boundaries, county lines, state lines, municipal boundaries, or other similar descriptors.

This territory is typically set as a radius around the restaurant location but can vary depending on the specific location and market conditions. However, CPK and its affiliates reserve the right to operate and license others to operate different types of restaurants other than CPK Restaurants within the franchisee's Protected Territory.

They also retain the right to merchandise and distribute goods and services identified by the Marks through various channels, including e-commerce and retail outlets like grocery stores and supermarkets, both inside and outside the Protected Territory. Furthermore, CPK reserves the right to operate or license others to operate CPK Restaurants at Non-Traditional Facilities, which may be located inside or outside the Protected Territory.

The franchisor places a strong emphasis on the franchisee's active involvement in the franchise operation. This is particularly evident in terms of financial commitment and decision-making responsibilities. The franchisor expects the franchisee to not only invest financially but also to take a leading role in the management and strategic decisions of the restaurant.

For example, the document specifies that the franchisor may require the franchisee, or if the franchisee is an entity, its owners and executives, to have a personal leadership role in the development of the restaurants. This includes maintaining absolute control over decisions related to the business, such as operational methods, standards, and the overall direction of the franchise.