There are many questions owners may have when it comes to owning a Little Caesars franchise. Opportunities like this don’t come around every day, so it’s important to do your research. This FAQ will aim to answer some of the most common ones. What are the ownership requirements? What are the franchise fees? How much profit can I expect to make? These are some of the questions that will be answered below. So if you want to know what it takes to own a Little Caesars franchise, read on!
Facts About Little Caesars Pizza Restaurants
Little Caesars was founded in 1959 by Mike and Marian Ilitch. Their first franchise opened in Warren, Michigan in 1962. It is the fastest growing pizza chain in the US and a globally recognized brand. They are the third largest chain in the United States by total sales behind only Pizza Hut and Domino’s Pizza.
Little Caesars Franchise Costs
Opening Little Caesars franchise business you will need a initial investment starts with eestimated at $379,000. These costs will vary based on factors such as the model you choose, the location of the franchise, and whether you are buying an existing restaurant or building from scratch. In addition to the traditional model, they have other franchise models available that are ideal for military bases, universities, airports, and convenience stores.
Small Caesars Franchise Fee
The initial franchise fee for a Little Caesars franchise is $25,000. This payment gives you the right to use their trademarked names and logos, as well as access to their proven business model. A franchise fee discount is available for military veterans and first responders. There are other costs involved in starting your own Little Caesars such as security and technology fees, housing, construction costs, and equipment.
Small Caesars Franchise Profits
Little Caesars is a profitable business. According to Statista, the total sales of Little Caesars pizza reached $4.23 billion in the United States in 2021. This is up from the 2020 total of $3.95 billion. This number has increased almost every year since 2008.
Little Caesars Franchise Owners Salary
A Little Caesars franchise owner can make about 17% profit before taxes, depreciation, rent, amortization, or interest. This comes out to about $90,000 but the owner’s salary can range anywhere from $50,000 to $200,000 a year after expenses. Of course, this number will vary greatly depending on your location, operating costs, and other factors. Also, many franchises that the owner has to succeed, this number will be high.
Little Caesars Franchise Requirements
There are several requirements that a prospective owner must meet before being allowed to open a restaurant at Little Caesars. Eligible franchisees will need to meet these requirements:
Net worth
To open a franchise restaurant with Little Caesars, each individual must have a net worth of $350,000. Your net worth can be made up of cash, savings, investments, or other assets.
Liquid Assets
A potential owner must also have liquid assets of at least $150,000. This is cash or other assets that can be quickly converted into cash.
Total investment
As mentioned earlier in this article, opening a franchise with Little Caesars requires an initial investment of $379,000. Having this amount, or the ability to get financing for this amount is required.
Benefit Amount
All shareholders are required to pay a penalty of 6% of gross sales or $100 per week, whichever is greater. This is how the company provides ongoing support to its franchisees. This is a low fee compared to other franchise companies.
Advertising Fee
In addition to the royalty fee, the franchisee is required to spend up to 7% of gross sales on advertising. This fee goes toward local, affiliate, and national advertising campaigns.
Hire
You will have to pay rent that can range from $1,500 per month to $7,000 per month. The amount you pay will depend on your restaurant.
Tenancy Development
Leasehold improvements can cost $50,000 to $1,000,000 and are required to build your restaurant.
Fixtures, fittings and signs
The cost of your repairs, equipment, and signs can cost you anywhere from $200,000 to $400,000. All of this is necessary to open and operate your restaurant.
Grand Opening Advertising
You will need to spend $12,000 to $20,000 on a good opening advertisement. This is a one-time fee that will help you promote your new restaurant and get it off the ground.
Training Expenses
Training costs are another necessary investment. This can cost you anywhere from $12,000 to $16,500 and is necessary to make sure your restaurant is running smoothly.
Beginning Inventory and Assets
You will need to have enough cash to purchase your opening inventory and supplies which can cost you between $63,000 and $154,000.
Insurance
Insurance fees can run you between $1,200 and $2,000. This is necessary to ensure that your restaurant and staff are protected.
Utility Costs
Service fees can cost you $1,000 to $9,000 per month. This is for things like water, electricity, garbage service, and natural gas.
Licenses and Permissions
You will need to obtain the necessary licenses and permits to open your restaurant. This can cost you between $1,000 to $20,000.
Additional fees – 3 months
It’s always a good idea to have extra cash on hand when starting out. Little Caesars recommends having a $17,000 to $47,000 cushion available. This is done to cover things like unexpected expenses, salary, and other operating expenses.
Eight-week in-store training program
Before you can open your doors, you’ll need to complete an eight-week in-store training program. The program covers everything from pizza making to employee management.
Is Opening a Little Caesars Pizza Franchise Worth It?
The answer to this question depends on many factors. If you love pizza and customer service, then owning a Little Caesars pizza chain franchise can be a very rewarding experience. It is important to do your research and make sure you know all the costs and ongoing expenses involved before making any final decisions about any franchise opportunities.
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