How Much To Buy A Pizza Hut Franchise
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how much to buy a pizza hut franchise
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Pizza Hut selects franchisees with solid restaurant or retail management experience. Owners must commit to opening at least two locations and ideally have eyes to open at least five Pizza Huts in as many years. Selected Pizza Hut franchisees will complete a training program in Dallas, Texas for over two months. Currently, Pizza Hut is particularly focused on building and growing franchises in New York, Massachusetts, Washington D.C., Rhode Island, and New Hampshire.
Frank and Dan Carney founded Pizza Hut in Wichita, Kansas in 1958. Since this time, Pizza Hut has grown exponentially. The restaurant chain now has over 6,000 Pizza Hut franchises in the United States, plus another 5000-something abroad in nearly 100 other countries.
Pizza Hut has a franchise fee of $25,000 for a 20-year agreement, although the total initial investment ranges between $297,000 and $2,109,000. Additionally, Pizza Hut franchisees must pay the company ongoing royalty fee of 6% on all sales, as well as an additional 3% to be applied toward national marketing efforts. To purchase a Pizza Hut franchise, interested parties must have a net worth of at least $700,000, with at least half of that amount available in liquid assets.
Pizza Hut was founded by two brothers in Wichita, Kansas in 1958 and began franchising the following year. Today, Pizza Hut has over 16,500 location operating around the globe, and is one of the leading franchises in pizza delivery. Pizza Hut is owned by Yum! Brands, the same parent company of KFC and Taco Bell, a global conglomerate specializing in broad appeal and massive market share.
The initial franchise fee to own a Pizza Hut franchise is $25,000, then after construction costs, equipment, and other startup costs, the total Pizza Hut franchise cost ranges between $367,000 to $2,063,500. In addition to this investment, Pizza Hut requires a minimum net worth of $700,000 and a cash requirement of $350,000. And while the average QSR franchise royalty fees range between 5-8 percent, Pizza Hut charges a combined 10.75 percent in ongoing fees.
The cost to own a Your Pie restaurant ranges between $364,750-$610,000, a much more inclusive price range than that of Pizza Hut. Additionally, Your Pie requires a more reasonable $500,000 net worth and $150,000 cash availability. After a $35,000 initial franchise fee, the rest of your investment goes toward the planning, layout and construction of your restaurant, along with training, marketing tools, and proprietary menu design. Ongoing royalty fees are a reasonable five percent.
Franchising since 2008, Your Pie is a much younger brand than Pizza Hut, but with nearly 70 locations currently in operation, it is a growing brand with a focus on the innovative flavors and creative practices that both customers and franchise owners crave.
One of the greatest advantages of joining a boutique franchise like Your Pie is the support and attention to detail you will receive as a franchisee. Larger brands adhere to a more homogonous, assembly line approach to their product and procedure, whereas brands like Your Pie take a special pride in the individuality of each location. Your Pie works with new and experienced entrepreneurs alike to tailor your franchise owning experience to your own set of needs, goals, and capabilities, providing a level of support that massive brands cannot sustain.
Your Pie franchisees benefit from the experience of a dedicated team of experts who are fully invested in growing an exceptional brand at every level. Each Your Pie franchisee gets to experience the opportunity to own their own vibrant pizza restaurant while receiving the support and guidance of a winning team.
Whenever a company is a leader in its industry, there will be, unsurprisingly, added interest in owning a franchise. Becoming a franchisee with Pizza Hut, however, is a multi-step process, beginning with an online application that inquires about your net worth, liquid assets, and relevant experience. Next steps involve disclosure documents, asset verification, background checks, and interviews. Pizza Hut is most interested in multi-unit operators, and currently has 20 multi-unit opportunities available (via Pizza Hut). So, how much would it actually cost to open your own Pizza Hut franchise, if you're financially ready?
The initial franchise fee to open a Pizza Hut is $25,000. However, the estimated total cost of investment, including equipment, computer systems, smallwares, a building, etc., can range between $367,000 and $2,063,500, according to Franchise Direct. This cost does not include monthly service fees, technology fees, training fees, and more. There's a lending assistance program in place for minorities and qualified former employees who are interested in franchising. The assistance equates to 25 percent off the principal of the business loan.
Remember those net worth and liquid asset requirements? According to Entrepreneur, the net worth that Pizza Hut requires from its franchisees is $700,000, and liquid assets should be $350,000. Want to jump right into running your new business? Not so fast. Entrepreneur notes that there are 43 to 65 hours of classroom training, and another 320 to 480 hours of on-the-job training before Pizza Hut hands over the keys to the kingdom.
For example, Pizza Hut ranks third among pizza franchises in the 2018 Entrepreneur Franchise 500 list (and 47th overall), trailing just Papa John's and Marco's Pizza. But, at the start of 2017, Pizza Hut had just under 15,000 locations worldwide, while Papa John's had approximately 5,000.
There are plenty of franchises on the Franchise 500 that you can buy for $25,000 or less. Pizza Hut is not one of them. In fact, you'll pay that just in the initial franchise fee. Then, after construction costs, buying equipment and other startup costs, you'll end up paying $302,000 -- minimum. Depending on your exact location and specifications, that number could balloon to more than $2 million.
Given Papa John's and Marco's respective price tags, you might think the Pizza Hut price is exorbitant, but it's actually right in line with other popular food franchises. For example, a McDonald's will cost between $1 and $2.3 million. A Dunkin' Donuts will run between $229,000 and $1.7 million. Sonic's price range is $1.1 and $2.4 million.
But, just because it's on par with other big-name brands, doesn't mean it's affordable for everyone. Pizza Hut requires a franchisee has a net worth of at least $700,000. That's not exactly chump change.
Pizza Hut's training regiment is a little different than most other restaurants and franchises. Most places require a combination of classroom and on-the-job training. For example, Marco's requires 266 hours of on-the-job training and 60.4 hours of classroom training.
Pizza Hut skips the classroom training altogether and extends the on-the-job training. Expect eight to 12 weeks (or 320 to 480 hours) of training at your location when you start a Pizza Hut franchise.
However, just as important as the geographic location is the physical location -- or what type of store you choose to franchise. Do you want to be part of a mall or a standalone restaurant? Pizza Hut says you can find its restaurants in airports, shopping malls, college campuses, casinos, resorts and more.
What exactly are you getting with your investment, other than a pizza restaurant? After all, you could probably start your own pizza delivery place for $2 million. Pizza Hut is similar to many franchises in that it offers two types of support.
The first is ongoing business support, which includes a newsletter and conventions you can attend with other franchisees to learn tips and tricks of the trade, as well as a grand opening, a toll-free line and online support.
Pizza Hut is an American restaurant chain and international franchise founded in 1958 by Dan and Frank Carney. The company is known for its Italian-American cuisine menu including pizza and pasta, as well as side dishes and desserts. Pizza Hut has 16,796 restaurants worldwide as of March 2018, making it the world's largest pizza chain in terms of locations. It is a subsidiary of Yum! Brands, Inc., one of the world's largest restaurant companies.
We provide estimated franchise costs for some countries: - In the United States, the total investment to start the Pizza Hut restaurant is around $302,000 to $2,185,500. - In Indian currency, the investment comes around Rs 72 lakhs to Rs 3.6 crores. - In Canadian currency, the investment comes around CAD 400,377 to CAD 2,897,436. - In Pakistani currency, the investment comes around PKR 47,360,971 to PKR 342,739,746.
Crave Hot Dogs & BBQ is a fast casual restaurant franchise that offers a unique and exciting dining experience. The menu features a variety of delicious hot dogs and BBQ dishes that are sure to satisfy everyone's craving. The restaurant offers a self-pour beer wall, allowing customers to choose from a selection of craft and domestic beer, ciders, and mixed drinks and pour their own drink.
Term of Agreement and Renewal: The length of the initial franchise term is typically 10 years. Franchisees can enter into two consecutive Renewal Franchise Agreements for a term of five years each, if they meet certain requirements. 041b061a72