Love pizza? Well, who doesn’t? If you are planning in dipping your toes into the food and beverages business, you may want to consider a pizza business. Due to its increasing demand, the pizza industry is currently expanding. More and more pizza chains and shops are popping up. If you’re still in the process of deciding on the specifics of your business, you may want to consider franchising.
Franchising is one of the best ways to start a business. Some may seem intimidated when it comes to franchising a company due to the cost, and many believe that the price is beyond their means. Before jumping into the fray, it is better to understand everything you can about the business and get the technical knowhow. Take some time to learn about this segment of the food and beverage industry and you’ll find that, like any business venture offered out there, there are pros and cons when it comes to franchising.
Pros
- Easy Marketing
You already have an established customer base. You benefit from an already existing market, and you will have fewer issues acquiring or hiring staff since you’re already working with a trusted brand. Training will also be available for you and your team to be able to manage your business accordingly.
With their established marketing set-up, you can just add your own touch with online marketing strategies so you’ll reach an even broader market.
- Trusted Suppliers
You don’t have to put much effort into finding a trusted supplier since the franchisor will provide it for you. Machinery and the equipment needed will most likely be given too, depending on the contract.
- You’re the boss
You are in control of running the place. Unlike being an employee, you won’t take orders from other people. In doing business, you are the one who has a say on matters.
- Low-risk business
With the above mentioned, the risk is lower for franchised businesses than with starting up an independent one.
Cons
- High start-up cost
The cost in franchising is often higher than starting an independent business by yourself. You also have to pay a monthly percentage to the owner, depending on the contract.
- Limited flexibility
You have to follow the rules and guidelines provided for by the owner. While you have control when it comes to your employees and some of the day-to-day operations of your own pizza franchise, there is little wiggle room in terms of creativity and decision-making.
- Dependence on the franchisors credibility and success
The image of your franchisor will definitely affect your business too. You may start a franchise today with a reputable pizza business only to find that their reputation becomes tarnished down the road.
As you carefully examine the pros and cons, you may well see that the pros still outweigh the cons. If you think so, then here are some affordable pizzerias you can consider franchising:
- Papa John’s
As the third largest pizza company in the US, Papa John’s can credit its success to founder John Schnatter. This pizza chain has more or less 3300 establishments, most of which are in the US and the rest are in 30 different countries. The brand claims to be using fresh ingredients to set it apart from the competition.
Below are the requirements financially:
- Net worth requirement: $150,000
- Initial investment: $114,000- $800,000
- Initial Franchise Fee: $25,000
- Rosati’s
This chain had its break of dawn in the metropolitan Chicago area. In 1970, Rick Rosati opened his own establishment in Arlington Heights, Illinois. After him, ten more members of the Rosati family opened their branches in different locations.
Rosati’s specialty is the thin crust Chicago-style and double-dough crusted pizza. The chain has now more than 200 locations distributed in ten other states that include Arizona, California, Colorado, Indiana, Kansas, Missouri, Nevada, North Carolina, Ohio, and Texas.
Below are the requirements financially:
- Net worth requirement: $400,000
- Initial investment: $134,200 to $975,500
- Initial Franchise Fee: $25,000
- Royalty: 5%
- Marco’s Pizza
Marco’s was founded by Italy’s-own Pasquale “Pat” Giammarco in 1978 and is based in Toledo, Ohio.
With no compromises on the quality of the ingredients as their brand claims, Marco’s pizza is almost everyone’s favorite in the Midwest region. It opened 600 stores in 2015 and currently, about 1000 more are waiting to be opened.
Below are the requirements financially:
- Net worth requirement: $350,000
- Initial investment: $ 223,000 to $663,900
- Initial Franchise Fee: $25,000
- Royalty: 5.5%
- Ad Royalty: 1%
- Dominos
The chain was established in 1960 and had its headquarters at Domino’s Farms Office Park in Ann Arbor, Michigan. Its famous “Brooklyn” style pizza, also known as “New York” style, may be one reason why pizza enthusiasts keep coming back.
With its innovation, customers can track through its website the progress of their pizza being made, so they know when to go to the store and pick up their pizza — or when they can expect it at their doorstep.
Below are the requirements financially:
- Net worth requirement: $400,000
- Initial investment: $400,000- $423,000
- Initial Franchise Fee: $20,000
If you’re now craving a pizza and a new business venture, hopefully, this article has shed some light on some of your more promising and affordable franchise options. At the end of the day, it boils down to your proper research and sound business plan. Either go with your personal favorite or go with what is financially viable for you. Decide now and get that pizza business started!
