Kono Pizza: Exploring the Facts Behind the Claims
Considering investing in a business to potentially boost your income? Well, before you make any hasty decisions, it’s important to exercise caution, especially when it comes to Kono Pizza. While there have been allegations of fraudulent activities surrounding this franchise concept, it’s crucial to approach the subject with a degree of uncertainty. In this blog, we will explore some reasons why you may want to exercise caution before considering an investment in Kono Pizza.
Kono Pizza Franchise: Potential High Investment Costs, Royalties, and Fees
One area of concern with Kono Pizza revolves around the initial investment required. While they may claim that you can establish your own business with minimal costs, it’s essential to note that the actual expenses involved tend to be higher. The initial investment only marks the beginning of your financial obligations, as ongoing fees and royalties also come into play. Even if you manage to generate some profits with Kono Pizza, they may not be sufficient to cover the substantial costs associated with running your business.
2020 The Joint Median Kono Pizza Franchise Sales: $461,485
Additionally, Kono Pizza imposes relatively high royalty fees, obliging you to pay a percentage of your sales to the company each month. This fee can potentially reach up to 20% of your total sales. Considering that most businesses typically operate with a profit margin of around five percent, it becomes evident that Kono Pizza could claim the lion’s share of your business’s profits.
Two master franchise owners are David Ragosa and Carlo Ruggiero. They said they were FDD approved and had a successful location in Edison, NJ. However, it’s worth mentioning that the corporate location in question has since closed. Furthermore, a Jersey City location situated in Newport Mall faced a similar fate.
…In the FDD, they listed figures which showed them selling up to 350 cones per day, which is nearly impossible and obviously they never accomplished or the stores wouldn’t close. There is no documentation demonstrating any success as they claimed.
Data Source: Organization Date: 03/08/2019
Evaluating the Price/Quality Ratio of Kono Pizza
The concerns surrounding Kono Pizza don’t end there. Various hidden costs are associated with the franchise, such as marketing materials that Kono Pizza insists are crucial for promoting your business. Unfortunately, these materials often turn out to be of subpar quality and overpriced. Furthermore, Kono Pizza may require you to purchase inventory exclusively from them, and unfortunately, the quality of such inventory is frequently below par and overpriced.
“They sold me a franchise in Dallas, Texas in March 2016. I spent $39,000 for the franchise fee and $10,000 for site admin. Nobody knows what the site admin fee was for, but they did not help me find a location. I had a location in mind (Town East Mall) and they did not help me with verifying GGP (the mall owner) sales figures of the stores in the malls. Once a Franchise Agreement has been signed and necessary permits are secured, it usually takes 4–8 weeks to get open.
…They did not even have a standard design. It took me 8 months to open, considering all preparations, involved, mall construction timing, mall requirements, etc. They are completely lying. In Texas, the laws are more lenient and it took 8 months to open.
Data Source: Organization Date: 03/08/2019
Examining the Terms and Conditions of Kono Pizza
Apart from the high investment costs and hidden fees, Kono Pizza has been accused of employing additional tactics that could raise concerns among potential franchisees. One such tactic involves frequently altering the terms outlined in the franchise agreement. These modifications may affect the royalty structure, marketing requirements, or inventory regulations. Additionally, adequate support for franchisees is often lacking, which can leave you feeling frustrated and isolated as you navigate the challenges of running your own business.
Lastly, the biggest part of the scam is that they sold me expired food product , 8 months expired. When confronted they claimed it was because of the food distributor did not check their inventory but when I asked Eric in Philly he said they knew about it for a long time.
Data Source: Organization Date: 03/08/2019
Conclusion
Considering the allegations surrounding Kono Pizza, it is crucial to exercise caution before investing your hard-earned money. While it is not our place to definitively declare them a scam, it is advisable to approach the franchise with skepticism. It would be prudent to avoid disclosing any personal information or providing them with access to your financial resources and to visit their site and analyze it thoroughly. Instead, it would be wise to explore other business opportunities that have established reputations and demonstrate a commitment to integrity. Remember, thorough research and astute investment decisions are essential to safeguard your financial well-being.
At Vetted Biz, we specialize in identifying reputable businesses worthy of your investment. Our team of experts is dedicated to conducting comprehensive research on your behalf, providing you with a carefully curated list of businesses that align with your investment goals. Reach out to us today to discover more about our services.
