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Should You Start a MOD Pizza Franchise? (Exact Startup Cost)

How much does MOD pizza franchise costs? With a franchise fee of $30,000, the average investment for a MOD Pizza outlet ranges from $714,000 to $1,092,000. If you have the necessary funds, you can franchise the original pizza concept.

mod pizza franchise costs

Mod Pizza Franchise Costs

In addition to these costs, MOD Pizza demands a constant fee of 5% of weekly earnings.

A marketing fee of 2.5% of weekly revenues is also charged, with the possibility of an increase to 3%. Before the percentage for this fee increases, a 90-day warning will be sent.

Please be aware that fees might fluctuate, so by the time you read this, they might have changed.

Before you sign any kind of contract, make sure to get MOD Pizza’s most recent prices in writing. You can confirm this information by getting a copy of their most recent FDD.

Average Sales and Annual Revenue

In 2020, MOD Pizza recorded $461 million in sales. Despite the enormous numbers, MOD Pizza actually saw a 5% fall in sales from their $483 million high point in 2019.

Of course, the epidemic had an impact on their revenue. Some pizza concepts that were more geared toward delivery ended up profiting from state-wide lockdowns.

However, MOD Pizza has seen a greater portion of its revenue come from dine-in sales. When it comes to converting to an online ordering environment, MOD Pizza has shown a lot of potentials, with digital sales currently accounting for 40% of the company’s overall revenue.

How Can a MOD Pizza Franchise be started?

The idea behind the Mod Pizza franchise is to take care of its staff members, who will then take care of the customers and run a successful business.

It implies that an entrepreneur will always receive help and direction if they own a Mod Pizza business franchise.

The eatery sells freshly baked pizza along with salads, sides, and drinks.

Make Sure you Have Enough Capital

You need to have between $30,000 and $50,000 in operating capital in order to start a Mod Pizza business franchise.

Recognize the financial commitment needed for a restaurant franchise.

You must take into account costs associated with purchasing real estate, purchasing tools, and signs, obtaining licenses and permissions, purchasing uniforms, purchasing insurance, etc.

Consider Your Past Expertise and Strong Points

Before submitting an application to become a franchise owner of a Mod Pizza quick casual pizza restaurant, you need carefully assess your prior business experience.

Analyze the Supply on the Market

Before moving on, you should check the market availability for Mod Pizza franchises and see whether there are any markets in the area you are interested in.

Send Your Application in

The team that oversees the Mod Pizza franchise will examine your application.

Upon receiving your online application, you will receive a confirmation email. In this email, we will also include the franchise owner’s contact information.

Get the Go-ahead to Start Your Mod Pizza Franchise

Following the conclusion of your background and financial checks, you will be granted franchise clearance.

Only applicants who fully satisfy the standards of franchise owners will receive approval.

How Much Does MOD Pizza Make in Profit?

In 2020, MOD Pizza reported $388 million in net revenue in its year-end report. In that particular year, their revenue fell by 1%.

But digital revenue increased by 275%. Digital sales climbed to 216% of all revenues, accounting for 40% of the total.

Since MOD Pizza is a privately held company, it is impossible to obtain precise data to determine whether MOD Pizza may be successfully franchised.

I can still estimate the annual profitability per store using averages for the pizza business.

For instance, a pizza parlor typically makes between 7% and 13% in profit. I’ll base this estimate on a 10% profit margin to make things straightforward. 

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Benefits of Owning a MOD Pizza Franchise

Here are some benefits you might anticipate from owning a MOD Pizza franchise should your application be accepted in the future.

Concept

You can “make your own” pizza at other restaurants besides MOD Pizza.

However, the fact that it is one of the few establishments with over 40 topping selections, a variety of crust-size options, and finishing sauces appeals to many people.

Everyone in the family can obtain what they desire thanks to the popularity of this notion.

So if there is a MOD Pizza in your neighborhood, it may become a popular place for people to bring their friends and families for fun as well as dining.

Beyond Just Food

It’s not simply good pizza at MOD Pizza. They pride themselves on being a “people place,” as was already noted, by taking care of their employees and giving many people the chance to find work.

They also actively promote awareness of suicide prevention and mental health, as well as the LGBTQ+ community and those with IDD.

Being a part of the MOD Pizza family is something to be proud of.

Vegan Food and Other Nutritious Choices

MOD Pizza offers more than simply traditional pizza fare. Additionally, they offer vegan consumers toppings like their brand-new plant-based Italian sausages.

Customers can choose their cauliflower crusts in place of the usual ones if they are following a low-carb diet. For those who have dietary limitations, they also provide a gluten-free crust.

MOD Pizza is available to everyone in your neighborhood, leaving no one out.

It is advantageous to be able to provide food that people with various special diets can actually eat.

Challenges of a MOD Pizza Franchise

Even the pizza businesses with the quickest growth confront obstacles. When you open a franchise with MOD Pizza, you may anticipate the following.

Mixed Opinions

Despite MOD Pizza’s claims that they want to be a “people place” first and ensure that its staff is satisfied with their employment, there are conflicting opinions about working there online.

Although working with them was “light and fast,” according to one evaluation, the management lacked the necessary leadership skills.

Another review claims that they were not reimbursed and that their query went unanswered.

Competition

There are other “build your own pizza” concepts besides MOD Pizza. There is Pieology, The Pizza Press, and Blaze Pizza.

Customers may enjoy this idea, but it can be more difficult for business owners to implement. More toppings and top-notch customer service can dazzle customers.

However, you must continually consider fresh strategies to draw in new clients or convince your current ones to return.

Additionally, while offering more toppings is usually beneficial to clients, it presents difficulties for you as a business owner.

This year, issues with the supply chain have affected every restaurant. Keeping all these fresh goods on hand might be challenging.

For at least another year, supply chain difficulties are going to be a problem for all eateries.

Frequently Asked Questions

What is the mod pizza franchise costs? The initial investment range for Mod Pizza is between $714,000 and $985,000, with a franchise fee of up to $30,000.

The American pizza chains with the biggest sales in 2021. In 2021, Domino’s Pizza was the largest chain of pizza restaurants in the US, with revenues of about 8.64 billion dollars. Little Caesars and Pizza Hut came in second and third place, respectively.

Pizza restaurants should aim for a 15% profit margin as the industry norm. You can anticipate pre-tax profits of $150K with 1 million in annual sales! Pizza is a popular fast food item in the United States.

  • Ensure you have adequate capitalization.
  • Appreciate the investment required for a restaurant franchise.
  • Evaluate your prior experience and strengths.
  • Assess market availability.
  • Submit your application.
  • Receive approval & opening your mod pizza franchise costs.

Those who wish to become a McDonald’s franchisee must pay a $45,000 franchise fee and have liquid assets of at least $500,000 accessible. It will cost between $1,314,500 and $2,306,500 to open a new McDonald’s franchise. Mod pizza franchise costs can reach $1 million or more.

Scott and Ally Svenson

Total cost: Excluding land and leasing charges, the cost of a single Taco Bell franchise store is projected to range from $1.2 million to $2.6 million. Initial outlay: Depending on where you are and what kind of restaurant you are opening, your initial outlay will differ greatly.

An 800° oven cooks piping hot pizzas in just three minutes, and if the consumer doesn’t like their first dish, they get a free second one. Scott and Ally Svenson created the idea for MOD Pizza, who were looking for a cheap method to feed their four hungry boys. MOD is an acronym for Made On Demand.

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