Your Guide To Opening a Pizza Franchise
If you’re thinking about opening a pizza franchise, then you’ve come to the right place. Owning your own business is a big responsibility, and a pizza business has many different parts.
The current demand for restaurants is incredibly high. The National Restaurant Association’s 2020 State of the Restaurant Industry report emphasizes how consumers are gunning for more food franchises, stating, “consumers’ pent-up demand for restaurants is high; nearly half of consumers say they aren’t using restaurants as often as they’d like.”
Founded in April of 2008, Your Pie was the first fast casual, down-the-line pizza concept to market. Your Pie is rapidly expanding, with more than 75 restaurants across 18 states. Based on Your Pie’s decades of experience and success, we’re here to help give you the best tips on what it takes to open a pizza franchise, how to manage pizza franchise costs, and what are some best practices.
Where do I start?
According to a state of the industry report done by PMQ, pizzerias are thriving internationally, with a predicted growth rate of 10.7% within the next five years. Data from the Economic Research Service also shows “the vast majority of adults reported that, in the last 12 months, they bought food from a fast-food or pizza place.” This tells you that you’re already in a market that is going to increase, so your next big move would be choosing a pizza franchise brand that embodies your same passion, mission and business mindset.
Do Your Research
The first thing you will have to do is choose the brand in which you want to invest. Research all the available pizza brands in the market and find one that aligns with your goals and business plans. Remember, when choosing a franchise brand to invest, you must keep in mind the pizza franchise cost.
Know what you are willing to spend up front when buying your own franchise location. Franchise brands should have their costs listed or available to you upon request. Brands also commonly have their own processes listed on their website, so take it upon yourself to comb through what they have shared and what resources are already available.
Understanding the Cost
You may be wondering what really goes into your pizza franchise cost and where that money goes. The Small Business Administration defines a franchise fee as the cost of entry, saying, “paying the upfront franchise fee unlocks the door to the franchisors’ proprietary business systems and more. The franchise fee is literally a license to own and operate the franchise business.” The SBA states how franchise fees can usually range from $20,000 to $50,000 (not including a Master Franchise purchase).
Franchise fees consist of other things too, including the royalties and fees you will pay toward your location’s marketing. You must be financially able and ready to own a new franchise location before going into a new franchise process.
I’ve Chosen My Brand, Now What?
Once you find the pizza franchise that best fits you and your business goals, contact the franchisor and set up a time to discuss your interest. What questions do you have for them? Connecting with a representative from the brand is a surefire way to get answers that may be more personal and specific to you, your location or your endeavors, answered.
When you choose which franchise you want to open your pizza restaurant, you’ll then send them an application for them to review. If the leadership team sees that you are a hard worker and good fit for their brand, they will ask you one of the biggest questions…
Have You Determined Your Franchise Location?
Arguably the biggest step of your franchise journey is choosing the right location for your business. Think of what geographical areas are available for a new pizza franchise, and which communities you would be a good fit for your restaurant. Is there a certain region that lacks pizza restaurants and could garner many customers from putting one in place? Perhaps you know of a great area that could benefit from another key pizza franchise location. Remember, this is something that could be a huge make or break for your pizza franchise costs and you must plan accordingly.
Hit The Ground Running
Once your application is reviewed and approved by the brand, you’ve paid your franchise fees and you are ready to go to work at your new location, you have officially opened your own pizza franchise! You will then want to find the right staff that is ready to work just as hard as you, make sure the proper marketing and promotion is in place and use your brand’s leadership team for support.
Now that you understand your pizza franchise cost, it’s time to find your franchise! Contact Your Pie and see how you can open your pizza franchise in your area today!