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MOD Pizza Franchise ProfileFood Franchises > Pizza |
To open a MOD Pizza franchise, you should expect an initial investment ranging from $1,001,223 to $1,301,134. This includes a franchise fee of $30,000, along with ongoing royalty and marketing fees of 5% and 2% of revenue, respectively. It's essential to have cash readily available within this investment range, as well as a net worth of between $500,000 and $1,000,000 to qualify for franchise ownership.
MOD Pizza franchises have shown promising financial performance, with average annual revenues reported at $1,614,246 per unit. The median revenue stands at $1,200,000, while the lowest and highest recorded revenues are $1,000,000 and $1,200,000, respectively. The breakeven period is approximately 12 months, and franchisees can expect to recoup their initial investment in about 24 months, making it an attractive option for aspiring entrepreneurs.
MOD Pizza has demonstrated steady growth in its franchise network. From 2021 to 2023, the number of franchised units increased from 84 to 87, while corporate-owned units rose from 422 to 465 during the same period. This growth indicates a strong brand presence and potential for expansion, making it an appealing choice for new franchisees looking to enter a thriving market.
Franchisees should be prepared for various ongoing costs associated with running a MOD Pizza franchise. These include a royalty fee of 5% of revenues, a marketing fee of 2%, and additional expenses such as sales and marketing costs, general administrative expenses, and IT support services. The total annual operating expenses can range significantly, so careful financial planning is crucial for maintaining profitability and ensuring long-term success.
MOD 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.
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MOD Pizza Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
Units | 2021 | 2022 | 2023 |
---|---|---|---|
Total Units | 506 | 531 | 552 |
Net Change YoY | 25 | 21 | |
Franchised Units | 84 | 86 | 87 |
Net Change YoY | 2 | 1 | |
Corporate Units | 422 | 445 | 465 |
Net Change YoY | 23 | 20 |
Starting a MOD Pizza franchise requires an initial investment ranging from $1,001,223 to $1,301,134. This includes a franchise fee of $30,000. It's essential for prospective franchisees to prepare for these costs, which cover everything from equipment and inventory to training and marketing support.
MOD Pizza franchises have shown promising financial performance, with average annual revenue per unit reported at $1,614,246. The median annual revenue stands at $1,200,000, while the lowest recorded revenue is $1,000,000. These figures highlight the potential profitability of investing in a MOD Pizza franchise.
Franchisees are required to pay a royalty fee of 5% of gross sales along with a marketing fee of 2%. These fees contribute to the ongoing support and brand development provided by MOD Pizza, ensuring franchisees benefit from a well-established marketing strategy.
Franchisees can expect to break even within 12 months of operation, with an investment payback period of approximately 24 months. This relatively quick turnaround can be appealing for investors looking to recoup their initial investment in a timely manner.
MOD Pizza has experienced steady growth, increasing its number of franchised units from 84 in 2021 to 87 in 2023. The total number of units, including corporate locations, has also risen, indicating a successful expansion strategy and strong brand presence in the market.
Operational expenses for a MOD Pizza franchise include various costs such as sales and marketing expenses, general and administrative expenses, and local marketing contributions. With total annual expenses ranging from approximately $3,629 to $43,629, franchisees must effectively manage these costs to maintain profitability.
Frequently Asked Questions
The initial investment for a MOD Pizza franchise ranges from $1,001,223 to $1,301,134, which includes the franchise fee and other startup costs.