Straw Hat Pizza

Straw Hat Pizza Franchise FDD, Costs & Fees (2025)

Straw Hat Pizza serves a variety of specialty pizzas, salads, and sandwiches, focusing on fresh ingredients and a family-friendly dining experience.

Straw Hat Pizza has been delighting pizza lovers since July 10, 1959, when it first opened in San Leandro, California. Now based in Brentwood, California, the brand began franchising a decade later in 1969, steadily expanding its presence across the state.

Famous for its “Genuine California Pizza,” Straw Hat offers a signature flaky, layered crust topped with fresh ingredients, a light and flavorful sauce, and a proprietary blend of six aged cheeses. The menu has evolved to include a variety of options like Hot Hat® sandwiches, crispy chicken wings, and fresh salads, ensuring there’s something for everyone.

What truly sets Straw Hat Pizza apart is its unwavering focus on quality and its welcoming, family-friendly atmosphere. Each day, the dough is freshly prepared, and the sauce is crafted from fresh-packed tomatoes, underscoring the brand’s dedication to authentic taste and premium ingredients.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $20,000
Initial Real Estate Costs (Leased) $6,000 to $20,000
Construction & Leasehold Improvements $30,000 to $750,000
Utility Deposits $2,000 to $70,000
Equipment & Fixtures $50,000 to $200,000
Exterior Signage $2,000 to $20,000
Computer System $6,000 to $25,000
Initial Inventory & Supplies $4,500 to $12,000
Business Licenses & Permits $3,000 to $105,000
Insurance (General) $6,000 to $12,000
Travel/Room & Board for Training $500 to $4,000
Opening Advertising & Promotional Costs $10,000
Outdoor Patio Area (Optional) $0 to $30,000
Food Truck or Trailer (Optional) $0 to $250,000
Additional Funds $5,000 to $50,000
Total Estimated Investment $145,000 to $1,568,000
Type of Expenditure Amount
Initial Franchise Fee $20,000
Initial Real Estate Costs (Leased) $6,000 to $20,000
Construction & Leasehold Improvements $30,000 to $750,000
Utility Deposits $2,000 to $70,000
Equipment & Fixtures $50,000 to $200,000
Exterior Signage $2,000 to $20,000
Computer System $6,000 to $25,000
Initial Inventory & Supplies $4,500 to $12,000
Business Licenses & Permits $3,000 to $105,000
Insurance (General) $6,000 to $12,000
Travel/Room & Board for Training $500 to $4,000
Opening Advertising & Promotional Costs $10,000
Outdoor Patio Area (Optional) $0 to $30,000
Food Truck or Trailer (Optional) $0 to $250,000
Additional Funds $5,000 to $50,000
Total Estimated Investment $145,000 to $1,568,000

Franchise Disclosure Document

Number of units

Training

Straw Hat Pizza provides its franchisees with a structured series of training programs to ensure proper business operations. Here’s a clear explanation of the key programs:

  1. Initial Training Program
    Straw Hat Pizza offers initial training to the franchisee or the Operating Principal and one restaurant manager, covering the Straw Hat system and methods. This training, which typically lasts three weeks and is held at a designated Straw Hat restaurant, must be successfully completed at least 60 days before opening.
  2. Additional and Refresher Training
    The franchisor may offer additional or refresher training, which can include materials delivered via paper, video, or electronic formats. Franchisees may be required to attend refresher courses around six months after opening, and Straw Hat may charge reasonable fees for these sessions.
  3. Opening Assistance
    Straw Hat Pizza provides opening support, including consultations on starting inventory and advertising for the grand opening. A representative may also visit the restaurant to provide operational feedback, though additional visits may incur consulting and travel fees.

Territory Protection

Straw Hat Pizza provides franchisees with a defined territory, but it does not offer exclusive territorial protection. While the franchisor agrees not to place another Straw Hat restaurant within the designated territory without written consent, it reserves the right to operate in nontraditional locations, use alternative distribution channels, and market through various platforms within that territory.

This means franchisees may face competition from company activities like online sales or special events. Franchisees are allowed to offer delivery and catering services outside their territory and may advertise into neighboring areas.

However, other franchisees may also advertise, deliver, or cater into the same territory, and third-party delivery platforms are not restricted by territorial boundaries. Additionally, the franchisor retains the right to adjust territory boundaries based on operational needs, demographics, or traffic changes, although such adjustments are not meant for placing competing restaurants.

Competitors

Below are some of

Straw Hat Pizza

key competitors in the

Pizza

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
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Gross Profit
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EBITDA
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29

New
+
12%
12%

$20,000

$145,000

$1,568,000

n.a.

$472,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

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Franchisees

?

73
+
66%
66%
Investment

?

$290,000 - $551,000

Paulie Gee's

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Franchisees

?

5
+
25%
25%
Investment

?

$255,000 - $734,000

Slice House by Tony Gemignani

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Franchisees

?

3
+
50%
50%
Investment

?

$406,000 - $1,148,000

East of Chicago Pizza

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Franchisees

?

60
+
-2%
-2%
Investment

?

$214,000 - $690,000

Mellow Mushroom

Mellow Mushroom is a pizza franchise known for its stone-baked pizzas, craft beers, and eclectic, artistic restaurant atmosphere.

Franchisees

?

161
+
-2%
-2%
Investment

?

$1,688,000 - $4,832,000

Russo's New York Pizzeria

Russo’s New York Pizzeria is a pizza franchise serving authentic New York-style pizzas, pastas, and Italian dishes in a casual dining setting.

Franchisees

?

37
+
3%
3%
Investment

?

$439,000 - $1,501,000