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

TOTAL:

Description
Investment Icon

What Are the Initial Investment Requirements for a MOD Pizza Franchise?

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.

Fees Icon

What Are the Financial Performance Metrics for MOD Pizza Franchise Units?

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.

Revenue Icon

What Is the Growth Trend for MOD Pizza Franchises?

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.

Breakeven Icon

What Ongoing Costs Should MOD Pizza Franchisees Anticipate?

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.

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

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

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

i Franchise Fee:

$30,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
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:

$1,001,223 - $1,301,134
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$1,001,223 - $1,301,134
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,614,246
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,200,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,200,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$1,000,000
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:

Scott Svenson
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

2035 158th Court NE, Suite 200, Bellevue, Washington 98008
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2013
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

MOD Super Fast Pizza Franchising, LLC

MOD 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

552
The number of locations owned by independent franchisees.

Franchised Units i

87
The number of locations owned and run by the franchisor.

Corporate Units i

465
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
Investment About

Initial Investment

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.

Potential About

Financial Performance

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.

Metrics About

Royalty and Marketing Fees

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.

Fees About

Breakeven and Investment Payback

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.

Breakeven About

Unit Growth

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.

Units About

Operational Expenses

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.