How Much Does a Marco’s Pizza Franchise Cost? (Profit + Royalty Fees)
The knowledge of the Marco pizza franchise cost would prepare you mentally and your finances, especially if you want to become a part of the company. It is important that you know this.
It’s time to think about everyone’s “Favorite Pizza Chain”.
Marco’s Pizza, the pizza establishment received that award in 2017. This pizzeria is positioned to be one of the dominant ideas in the United States with more than 1,000 sites.
How Much Does it Cost to Open Marco’s Pizza?
Thankfully, Marco’s is available for franchising! Marco Pizza franchise cost fee is $25,000, and the anticipated starting investment for Marco’s Pizza is $552,713.
A minimum of $150,000 in cash money and $450,000 in net worth are needed to qualify financially.
Financial Requirement and Cost
|
Fees / Expenses |
Financial Amount |
|
Liquid Capital |
$150,000 |
|
Net Worth |
$450,000 |
|
Total Investment |
$183,408 to $552,713 |
|
Franchise Fee |
$25,000 |
For potential franchise applicants, Marco’s Pizza requires the aforementioned payments. Don’t forget to account for the 5.5% royalty on sales. Corporate Marco’s Pizza retains the ability to raise royalties to 6%.
Franchisees will be advised of such an increase, so there won’t be any unexpected adjustments to your payments.
Franchisees with many locations who meet certain growth milestones could qualify for a reduced price.
Additionally, Marco’s Pizza charges 7% in advertising fees. This contains 1% for brand development, 2% for regional or local retail marketing, and 4% for the national advertising fund.
Make sure you’re okay with sending 12.5% of your gross sales to corporate before investing in this venture.
Reduced Cost for Veterans and First Responders
Considering you still have to cover all the other typical overhead expenses associated with a pizza business, this represents a sizeable portion of each pizza pie you sell.
The pizza franchise also provides rewards to franchisees with several locations and first responders.
If a veteran has a 50% or higher military service-connected disability rating, the Marco pizza franchise cost fee is reduced to $15,000 for veterans and totally eliminated for those individuals.
The cost is reduced to $20,000 for first responders with five or more years of service. For multi-unit franchisees that sign up for more than 5 units, reduced franchise fees and royalty fees are also available.
For franchisees who open 4 or more locations quickly, Marco’s Pizza additionally provides additional incentives. Additionally, potential candidates must have a credit score of 680 or higher.
Average Sales/Revenue Per Year
Sales of $1,059,571 or more were produced annually by half of the Marco’s Pizza locations.
In order to cover costs like franchise fees, labor, leasing, insurance, food costs, and other expenses related to operating a restaurant, operating Marco’s Pizza requires you to be in the upper half of sales performance.
According to statistics, Marco’s Pizza had $760 million in revenue in 2020. Additionally, they saw a 21.0% increase from their 2019 results.
You can anticipate a continued rise in system-wide sales as long as Marco’s Pizza keeps adding new locations.
Marco’s Pizza Franchise Facts
The only national pizza chain in America started by an Italian is known as Marco’s Pizza.
In 1978, Pat Giammarco founded Marco’s Pizza in Toledo, Ohio. Giammarco was born in Sulmona, Italy, and immigrated to the United States with his family when he was 9 years old.
Giammarco’s conviction that you can create a good pizza comes from his upbringing in Italy, where food is always natural and fresh.
In addition to using fresh Roma tomatoes for the sauce and a unique three-cheese mixture to produce the pizza, the pizzeria creates its dough from scratch every day.
Along with using fresh products, the Pat Giammarco valued prompt service.
Marco’s Pizza organizes competitions among its staff members to see who can make the best pepperoni pizza the quickest as part of their training.
Marco’s Pizza Menu
Pizzas, sub sandwiches, salads, and chicken wings are all available on their menu. In addition, they sell pizza bowls, which are bowl-baked pizzas without a crust.
Customers have a choice of four toppings for their pizza bowls. This is the pizza chain’s method of providing customers with low-carb/high-protein alternatives.
Additionally, they provide catering services for occasions and big groups. These shops also offer dine-ins, take-outs, and delivery.
More than 1,000 Marco’s Pizza outlets may be located in 34 states, the Bahamas, and Puerto Rico. They are well-known for having received recognition as America’s favorite pizza in 2019.
More Franchise Facts
Additionally, Marco’s Pizza, which was ranked sixth on Restaurant Business’ Top 500 Chains in 2020 for the Largest Pizza Chain category, is one of the “fastest expanding pizza enterprises” in America.
Additionally, they rank in 2021’s Entrepreneur Franchise 500. They take their franchise seriously since they give franchise owners 8 weeks of training.
Franchisees will be able to create a pizza for the corporate personnel during their last week of training. In Toledo, Ohio, in the learning lab, this training is being conducted.
According to the franchise, the top 50% of Marco’s Pizza franchised locations had an average unit volume of $1,059,571 in sales for 2020. One Marco’s Pizza location in Fulton County, which generates $908,000 annually, is for sale.
Other Franchise Facts
This is a great listing to investigate further in order to comprehend the precise charges associated with a Marco’s Pizza enterprise.
In other words, you get to see how business processes work. Highlights from this listing include:
- Asking Price: $250,000
- Monthly lease: $5,125
- Square feet of the store: 2,400
- Dining: Seating for 42 customers. No drive-thru window according to the business listing.
When it comes to developing a store, Marco’s Pizza is searching for the following qualities in real estate properties:
- 1,200 to 1,600 sq. ft. of space
- Pick-up windows
- Highly visible location
- Can be an inline, endcap, or standalone store
- Has great co-tenants
How Much Does Marco’s Pizza Make in Profit
The amount of profit earned by Marco’s Pizza franchisees is not known with certainty.
However, by examining the profitability of the pizza business as a whole, we may also estimate the net profit after expenses.
After expenses, a pizza restaurant might anticipate a profit of 7%, according to information from Pizza Today.
Naturally, there are some higher-margin products whose margins can reach 10% to 20%, therefore the profitability of running a Marco’s Pizza may vary.
We can assume that if an average unit earns $1,059,571 in profit a year, a franchisee can anticipate $74,169.97 to hit the bottom line using 7% as a rough profitability metric.
You can boost sales and reduce expenses if you want to earn more money.
Why You Should Start Marco’s Pizza
We can assume that if an average unit earns $1,059,571 in profit a year, a franchisee can anticipate $74,169.97 to hit the bottom line using 7% as a rough profitability metric.
You can boost sales, reduce expenses, such as waste, or open new franchise locations if you want to generate more money (encouraged by corporate).
As you can see, you might make a respectable living working full-time if you were able to manage a few Marco’s Pizza stores.
According to research by QSR Magazine, Marco’s Pizza’s sales increased by roughly 20% in 2020, leading us to believe that business may be booming for this pizza franchise. Over the next five years, there will be growth in this idea.
Advantages of a Marco’s Pizza Franchise
Interested in opening a Marco’s Pizza franchise? Here are a few benefits this pizza chain provides.
Special Recipes
Because of the founder’s Italian heritage, Marco’s Pizza is regarded as an authentic Italian pizza, but they are also renowned for offering up wonderful cuisine thanks to a unique recipe they developed and kept up over the years.
Their freshly baked dough, Roma tomato sauce, and three-cheese mixture are the special recipes that were previously described.
A restaurant with a unique recipe is another indication that a company was meticulous while creating its menu.
And you know that Marco’s Pizza has remained profitable throughout the years because so many people can attest to its taste and quality of it.
Well-Known Brand
The well-known pizza brand Marco’s Pizza has more than 1,000 outlets. They were recognized as the Best Pizza Chain, Most Loved Pizza Restaurant Brand, and Most Trusted Pizza Restaurant Brand of 2019 by the Entrepreneur.
In addition to providing excellent food, they also ensure that clients can get their orders quickly.
If you join them in franchising, you’ll be a part of this well-known business that has been refining delectable pizza since 1978.
Training
At Marco’s Pizza, they have a training lab where they ensure every franchisee leaves their eight-week training with a solid understanding of how to run the company.
As was already mentioned, they educate you on how to cook a wonderful pizza in addition to teaching you about management.
Charitable
The personnel at Marco’s Pizza are well-treated.
Their “Slice of Support” program is designed to assist their staff members who are dealing with personal or family issues, such as critical illnesses, the loss of houses and other property due to accidents and natural disasters, death, and unanticipated events.
Additionally, a non-profit, Slice of Support supports a number of causes.
Challenges of a Marco’s Pizza Franchise
Before signing up to become a franchise operator with Marco’s Pizza, you should be aware of the numerous difficulties you’ll encounter. Here are a few you may anticipate.
Lack of a Global Presence
Marco’s Pizza is only well-known in the United States despite being a pizza franchise with more than 1,000 locations and award-winning menu items.
Since they haven’t yet grown, they aren’t well-known outside of the United States, but after more than 40 years in business, it’s high time they thought about doing so.
This will increase competitiveness within the pizza sector while also enhancing its global visibility.
Does not Provide Financing
Unfortunately, financing is not offered by Marco’s Pizza when you register to operate a franchise. To assist you, they will instead give you a list of their favorite lenders.
Is the Marco’s Pizza Franchise Right for You
Marco’s Pizza is a business opportunity worth exploring further if you’re seeking an authentic Italian pizza with a proven franchise business plan.
Even after more than 40 years, there are still plenty of prospects for growth. For instance, there is a possibility that you can open a franchise outside of the United States because Marco’s Pizza wants to grow abroad.
Alternative to Marco’s Pizza Franchise
One brand that is available for franchising besides Marco’s Pizza is Papa John’s. They have more than 5,000 outlets globally and have been in operation for more than 30 years.
Franchise costs for Papa John’s range from $115,120 to $794,420. A $25,000 franchise fee is required. Visit our guide here to learn more about how much it costs to franchise a Papa John’s location.
Conclusion
We hope you were able to learn a lot from this article and understand the factors you need to weigh before starting a pizza business.
We’ve given out the advantages and disadvantages of Marco’s Pizza and that of Marco Pizza Franchise Cost fee for you along with the necessary finances and expected expenses.
This would serve as a guide for you and prove very useful for your future franchising plans
