Just came across this tidbit over on chowhound recently .Franchise?
You can read the thread here:http://chowhound.chow.com/topics/634364
I found the original prospectus. Here are some of the highlights:
Business Plan Overview
As described by Zagat’s restaurant guide, Frank Pepe Pizzeria
serves “the best pizza on the planet”. Widely recognized by
others such as The Food Network, The Travel Channel, Pizza
News, Citysearch, Forbes and GQ, Pepe’s has built its brand for
decades as one of the best pizza places in the country.
Frank Pepe opened his doors in 1925 priding himself on the
quality of the product he served. Pepe’s Pizza LLC will expand
Frank Pepe’s legacy by building and franchising new locations
throughout the U.S., starting with company owned stores In
Connecticut and the Northeast.
• Investors purchase 49% of Pepe’s Pizza LLC for
$1,000,000. Investors guarantee, on a pro-rata basis, a
$500,000 line of credit. The line of credit, agreed to in
principle by Fleet/BofA, cannot be used until the LLC is
generating revenues of at least $1,200,000 and cashflow of
$200,000 per year. 15% of Series A Stock is set aside for
management, board and advisors. Members of the Pepe
Family and Organization retain 36% of Pepe’s Pizza LLC.
The Pepe Family and Organization continues to wholly own
original Frank Pepe Pizzeria and The Spot (LLC holds right
to purchase original stores in the future). Members of the
Pepe Family maintain voting control through super-voting
rights until 5th store is successfully launched.
• 5,000,000 shares of Series A Common Stock to be
outstanding subsequent to funding. Shares issued to
following groups: 1,800,000 to the Pepe Family and
Organization; 2,450,000 to the Series A Common Stock
Investors; 750,000 to management, board and advisors.
• Series A Stock will be priced at $0.41 per share and sold in
$50,000 units (each unit representing 122,500 shares or
2.45% of the total shares outstanding).
• The funds generated from this transaction will fund the
development of the first new location. Plans are to use
internally generated cashflow to develop further locations
(external funds may be raised if the management and
board believe it most prudent to expand faster).