There’s a variety of affordable, low-cost pizza franchises everywhere. While the list below highlights the top pizza franchises when it comes to franchise fees, it does not take into account the required initial investment into building the pizza stores and the profitability of these stores over time, especially as it relates to the return on investment (ROI) and the payback period.
Here are some of the most affordable pizza franchises based on franchise fees charged to franchisees.
- Marco’s Pizza Franchise Fee: $25,000. This Italian restaurant was founded in 1978. In 2007, the restaurant chain started to franchise and added 57 branches by 2010. Currently, Marco’s Pizza has 831 franchises in 2017. They sell different kinds of pizza, salad, chicken wings, cheesy bread, and sandwiches. It’s one of the top restaurant chains yet one of the most affordable pizza franchises.
- Little Caesars Pizza: $20,000. As the third largest pizza chain the world, Little Caesars is the #1 Value Leader in the pizza segment. The franchise focuses on smaller store formats that cater to the pizza take-away and delivery business. Little Caesars is already in 50 U.S. states and 27+ countries and territories.
- Papa John’s International Inc. Franchise Fee: $25,000. Founded in 1985, Papa John’s has already over 2,629 franchises in the US and 1,724 worldwide. Papa John’s offers interesting flavors and kicks to their pizzas, which is probably why customers keep coming back.
- Jet’s Pizza Franchise Fee: $25,000. Jet’s pizza tripled franchises in a span of a decade with over 388 branches all over the United States. With its signature dish being the deep-dish square pizza, it has won over the hearts of many.
- Hungry Howie’s Pizza Franchise Fee: $20,000. For over 35 years, Hungry Howie’s Pizza has over 600 branches across 24 states. What’s unique about this pizza franchise is that each pizza can be personalized according to bread, sauce, toppings, and baking instructions, which makes eating pizza a more enjoyable experience for adults and kids.
- Gatti’s Pizza Franchise Fee: $5,000. Founded in 1969 in Stephenville, Texas, Gatti’s pizza has been offering traditional pizza with the freshest ingredients. Each restaurant comes with game rooms where parents, grandparents, and kids alike can play in. Isn’t that an exciting experience for both kids and parents?
- RedBrick Pizza Franchise Fee: $30,000. Since 1999, RedBrick Pizza has been offering well-crafted pizza catering to friends and families. This pizza chain is an unusual hybrid between the modern and traditional by introducing baking pizzas in an open-flame brick oven. This is indeed a unique experience with a different taste for everyone of all ages.
- Sbarro Franchise Fee: $25,000. Sbarro is a large pizza chain which was founded in 1956. They’re famous for their XL NY Pizza using only in-house dough and 100% whole-milk mozzarella. Sbarro is a premium fast-food-style pizza chain and has over 800 franchises worldwide.
- Papa Murphy’s Franchise Fee: $25,000. With over 1,500 branches worldwide, Papa Murphy’s offers affordable pizzas with savory flavors. Even though it’s less pricey, Papa Murphy’s makes sure to prepare their ingredients fresh every single day with a variety of toppings to choose from.
- Domino’s Pizza Franchise Fee: $25,000. Surely, you’ve heard of Domino’s Pizza. Even if Domino’s has grown to over 8,000 branches worldwide, franchises for this pizza parlor is actually quite affordable. This franchise also makes promising returns and value for money.
Note that many franchisors will require business plans as a part of the franchise application process. You must do your own personal research in order to be successful in acquiring these franchises. Getting advice from qualified franchise consultants and brokers in your area is highly advisable if you need professional assistance with the business planning process.
Author: Sean T. Ngo is the CEO and Co-Founder of one of Asia’s leading franchise consultancy, VF Franchise Consulting. He is Vietnamese American and has been living in Vietnam for over 16 years. You can reach him at sean@vffranchiseconsulting.com or info@vffranchiseconsulting.com
Frequently Asked Questions (FAQS) About Pizza Franchises
Pizza is a very good business. Consider these 3 advantages to owning a pizza business:
1. Consumer demand: 13% of Americans over age 2 eat pizza on any given day. It’s popular all over. It is most popular in the Northeast and Midwest, according to PMQ Magazine. 3 We eat 3 billion pies per year.
2. Profitability: Ingredient costs are relatively low compared to the price charged, ensuring profitability.
3. Growing industry: The pizza industry is $47 billion a year, and franchises constitute $36.4 billion of that, according to research firm IBISWorld. It is forecast to continue growing over the next five years.
Pizza has become a food staple — whether deep dish, thin crust, unusual toppings or more. Among food franchises it is one of the most popular categories. You get the benefits of the franchise system and branding, together with sound business fundamentals and help choosing locations.
Accordion Sample DesThe amount you make with franchise pizza depends on the type of pizza business you operate. For example, the average Dominoes owner might expect to make between $107,000 to $116,000 per year, according to Glassdoor. However, a Papa John’s franchise owner might make about $142,000 before taxes, says Franchise.com. First, of course, you need to subtract out costs related to food, labor, marketing, supplies, royalty fees and real estate associated with these franchises.cription
Yes, a pizza franchise can be profitable. For example, the top 75 percent of Marco’s Pizza restaurants made between $543,093 and $1,736,679 in net royalty sales in 2019. The average store spent about 31 percent on food and supplies and 25 percent on labor. The exact amount each store makes depends on the size, market, and expenses.
Opening a pizza franchise can cost anywhere from $25,000 to over $1 million, depending on locations of your franchise business and other factors. Most fall somewhere between $200,000 and $600,000. Those that just offer a mobile component or pickup and delivery service tend to be cheaper. Large, dine-in restaurant locations with extensive menus fall on the more expensive end of the spectrum.
