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How do I Open a Pizza Franchise?

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  • Written By: Brendan McGuigan
  • Edited By: Bronwyn Harris
  • Last Modified Date: 30 July 2017
  • Copyright Protected:
    2003-2017
    Conjecture Corporation
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Opening a pizza franchise is surprisingly easy, and can be a lucrative way to make a living if handled correctly. It does require a bit of cash on hand, as well as a strong business plan. But if proper time is taken to make sure the market is ripe, and the proper franchise opportunity is chosen, it can be an excellent source of income with enormous growth potential.

A franchise is a business model in which a central company provides a brand, basic product, training, and large-scale advertising to a franchisee. In exchange, the franchisee gives a percentage of their gross sales, and often will pay a royalty fee. In addition, in some situations an up-front fee is paid at the beginning, to buy a starter-kit, and to demonstrate to the franchisor a real commitment on the part of the franchisee.

Restaurants are especially suited to being franchised, because many people want to find consistency in their food wherever they travel. Large chains accomplish this by having the same base ingredients, and by having similar training and equipment for all of their stores. This model can be difficult to sustain simply through a central company, however, since achieving the sort of market saturation necessary to be truly successful can be too much for one company. By opening the field to franchisees, the central company expands enormously with minimal investment on their part.

The pizza franchise is one of the most popular of the franchise systems, since pizza is a widely popular food in the United States, prices are relatively low, and consistency is important among consumers. As a result, a number of different pizza companies offer franchise opportunities, each with their own requirements and ways of doing things, and each with their own benefits and disadvantages.

The first step to opening a pizza franchise is simply to choose what company you want to open a franchise for. This can be as simple as choosing the type of pizza you most like personally, or as complex as investigating in great detail the financial pros and cons of each. You will want to make sure your local market isn’t already saturated by the franchise you want to open, and in fact many franchises will only allow one store in a certain area.

Once you’ve chosen a pizza franchise, you’ll need to apply to become a franchisee. Most pizza companies have minimum financial requirements you’ll need to meet before you can even apply. For example, to become a Little Caesars™ franchisee, you need to have a net worth of at least $150,000 US Dollars (USD), and at least $50,000 USD liquid, to become a Papa Murphy’s™ franchisee, you need to have a net worth of at least $250,000 USD and at least $80,000 USD liquid, and to become a Domino’s Pizza™ franchisee, you need to have a net worth of at least $75,000 USD liquid.

Every pizza franchise corporation has forms you can fill out, which you can often find online, to apply to become a franchisee. If you meet the minimum requirements, if a restaurant is needed in your region, and if your application interests them, you will be contacted for the next step. Starting a franchise costs anywhere between $100,000 USD and $500,000 USD, depending on many factors, and most pizza companies charge between $10,000 USD and $30,000 USD per year as a franchise fee.

Next, you’ll secure a location, and turn it into a pizza store, using equipment, branding materials, and furniture you can purchase through the central company or one of their vendors. When you’re ready, you’ll attend a training at headquarters, and then a training in your store. After completing the training, you can hire employees and open the store, paying monthly royalties out to the parent company. A good pizza franchise will keep you up to date on changes, encourage you to attend franchisee events, and help make sure your business remains successful and profitable.

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