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Domino’s, Papa Murphy’s and Little Caesar’s, among others, all offer pizza franchises for sale. If you’re not sure how franchises work, they’re basically business agreements between a known brand or company and an investor who pays an entrance fee and royalties in exchange for national advertising and profit sharing.
Pizza is not only one of America’s most popular foods, but it’s also a $40 million a year industry. According to the Food Industry News, a trade publication, pizza comprises up to 10 percent of all food service sales in the United States. Another study by Bolla Wines reported up to 93 percent of Americans eat at least one pie per month.
Exploring the Actual Costs of Investing in a Pizza Franchise for Sale
Investing in a pizza franchise for sale may be costly, especially if you’re looking to invest with a nationally known chain such as Domino’s or Papa Murphy’s. In exchange for higher startup costs, you may earn a great return on your investment in a shorter period of time. Domino’s recommends qualified candidates have liquid assets in excess of $200,000 and be prepared to pay startup fees of up to $75,000.
It’s not uncommon for a major pizza company to charge at least $25,000 in franchise fees. It’s a good idea to compare agreements for a few different companies before you sign anything. Compare royalty fees, training programs and advertising support, and make a note of how many how many people own more than one franchise.
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Between 2004 and 2005 over 300 new franchise concepts were launched in the US.
In today’s high growth franchising industry, 1 new franchise opens its doors every 8 minutes of every business day.
The execution of business requires a strategy and top talent.