In the early 1990’s, following numerous requests, Casa Mia decided to begin a limited franchise program. The first of these opened in Kennewick in 1992. There are now eight Casa Mia Italian Restaurants located in Hoquiam, Olympia, Lacey, Kennewick, Richland, Puyallup, and Lakewood, Washington. Our newest Casa Mia recently opened in Yelm, Washington. Growth has been slow and controlled with an emphasis on finding good locations at affordable costs.
A Casa Mia Franchised restaurant will normally cost from about $50,000 to about $200,000 not including real estate. Typically, the costs break down as follows: the franchise fee is $18,500, equipment costs are up to about $120,000 and leasehold improvements can range from $30,000 to over $60,000. These are only approximations, as every situation is different. Some of the factors that can influence the cost include the size and condition of the space, the willingness of the landlord to contribute, financing considerations, location and local codes, etc.
We have built and opened restaurants at both ends of the range. Keep in mind that the site selection and costs are probably the most difficult and variable factors affecting the long-term success of any business.
In addition to the franchise fee of $18,500 franchisees pay an ongoing royalty fee of 5% of gross sales.
Why should anyone pay such a substantial franchise fee and ongoing royalties and what do you get for your investment?
Basically, a franchise company sells a system that has been tried and successful. As we tell people, what you really are paying for is our mistakes, made since 1952 and the knowledge we’ve gained from them. Typically, the failure rate in the first five years for independent restaurants is around 80%, compared to about 20% for franchised restaurants, so there is a significant advantage to opening a franchised business compared to an independent. Even so, success is far from guaranteed.
Opening a business is a difficult challenge under any circumstance. The odds are formidable and the potential for loss great. It is clearly not for everyone. We encourage you to carefully examine not just Casa Mia, but any opportunity before committing the investment of money and time required.
If you would like more information we would be happy to meet with you and present a Casa Mia Franchise Offering Circular, which details our company and the Casa Mia Franchise program. Please call Bob Knudson at 360-352-0440 or at cmia@qwest.net.