Get Franchise Bundle
Get Full Bundle:
$99 $79
$79 $49
$49 $29

TOTAL:

Description
Investment Icon

What Are the Initial Investment Requirements for a Marco's Pizza Franchise?

To open a Marco's Pizza franchise, potential franchisees should be prepared for an initial investment that ranges from $285,631 to $804,856. This includes a franchise fee of $25,000. Additionally, franchisees must have a minimum cash requirement of $9,000 and a net worth of between $250,000 and $1,000,000. Understanding these financial commitments is crucial for aspiring franchise owners to ensure they are adequately prepared for this business venture.

Fees Icon

What Are the Ongoing Fees Associated with a Marco's Pizza Franchise?

Franchisees of Marco's Pizza are subject to ongoing fees that help support the brand's marketing and operational efforts. There is a royalty fee of 5.5% on gross sales, along with a marketing fee of 7%. These fees are essential for maintaining brand presence and driving customer engagement, which can ultimately contribute to the franchisee's success. Being aware of these ongoing costs is vital for effective financial planning.

Revenue Icon

What Is the Average Revenue Potential for a Marco's Pizza Franchise?

Marco's Pizza franchises have shown impressive revenue potential, with average annual revenue per unit reaching approximately $1,405,079. The median annual revenue stands at $911,946, while the highest reported annual revenue can go up to $2,378,689. Such figures indicate a strong market position and the possibility for franchisees to achieve substantial financial returns, making it an attractive investment opportunity.

Breakeven Icon

How Quickly Can Franchisees Expect to Break Even?

One of the appealing aspects of investing in a Marco's Pizza franchise is the relatively quick breakeven time of just 12 months. This rapid return on investment is complemented by an investment payback period of the same duration. For entrepreneurs looking to enter the food service industry, this swift breakeven timeline can provide a sense of security and motivate them to pursue ownership with confidence.

Marco's Pizza Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$250,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

12 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$25,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5.5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

7%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$285,631 - $804,856
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$9,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$949,920
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$911,946
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$2,378,689
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$256,607
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Food Franchises
Category icon A more specific division within the broader industry.

i Category:

Pizza
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

John Butorac Jr.
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

5252 Monroe Street, Toledo, Ohio 43623
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2004
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Marco's Franchising LLC

Marco's Pizza Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

1063
The number of locations owned by independent franchisees.

Franchised Units i

1022
The number of locations owned and run by the franchisor.

Corporate Units i

41
Units 2021 2022 2023
Total Units 957 1000 1063
Net Change YoY 43 63
Franchised Units 912 956 1022
Net Change YoY 44 66
Corporate Units 45 44 41
Net Change YoY -1 -3
Investment About

Initial Investment

The Marco's Pizza franchise requires an initial investment ranging from $285,631 to $804,856. This includes a franchise fee of $25,000. Prospective franchisees should also be prepared for additional costs associated with equipment, leasehold improvements, and working capital.

Potential About

Financial Performance

On average, Marco's Pizza units generate annual revenues of approximately $949,920, with a median of $911,946. The highest annual revenue recorded is $2,378,689, showcasing the potential for significant profitability within this franchise model.

Metrics About

Franchise Growth

Marco's Pizza has shown impressive growth, increasing its number of franchised units from 912 in 2021 to 1,022 in 2023. This upward trend reflects the brand's expanding market presence and increasing popularity among consumers.

Fees About

Royalty and Marketing Fees

Franchisees are required to pay a royalty fee of 5.5% of gross sales, along with a marketing fee of 7%. These fees contribute to the overall support and development of the brand, ensuring consistent marketing efforts and operational guidance.

Breakeven About

Breakeven and Payback

Franchisees can expect to reach breakeven within 12 months of operation, with an investment payback period also estimated at 12 months. This rapid return on investment is a key selling point for potential franchise owners looking for quick profitability.

Units About

Corporate Structure

Marco's Pizza operates under the corporate entity Marco's Franchising, LLC, which oversees the franchise system. The company has a robust support structure in place, providing franchisees with training, marketing resources, and ongoing operational assistance to ensure success.

Frequently Asked Questions

The initial investment for a Marco's Pizza franchise ranges from $285,631 to $804,856. This includes the franchise fee of $25,000, along with other startup costs such as equipment and leasehold improvements.