Is
Marco’s Pizza
a franchise?
How many
Marco’s Pizza
franchises
are there?
What are the
Marco’s Pizza
franchise
fees?
Initial Franchise Fee ($25,000 - $30,000)
The initial franchise fee for Marco’s Pizza ranges between $25,000 and $30,000. This fee grants the franchisee the right to operate a single Marco’s Pizza location under the brand's guidelines and standards.
Royalty Fee (5.5% of Net Royalty Sales)
Franchisees are required to pay a royalty fee of 5.5% of their Net Royalty Sales. This fee is for the ongoing support and services provided by the franchisor, including the use of the Marco’s Pizza brand name.
Advertising Fee (7% of Net Royalty Sales)
Franchisees must spend a minimum of 7% of their Net Royalty Sales on advertising, marketing, and promotional programs. This includes:
- Brand Development Fund (1% of Net Royalty Sales): This fund is dedicated to the overall brand development of Marco’s Pizza.
- National Advertising Fund (4% of Net Royalty Sales): Contributions to this fund are used for national advertising campaigns to promote the brand.
- Local Store Marketing (2% of Net Royalty Sales): If franchisees are not required to participate in any other Geography-Based Advertising Fund or Ad Co-op, they will need to allocate the remaining 2% of their Net Royalty Sales for local store marketing.
Other Notable Fees:
- Additional Training ($1,000 per person): This fee applies if additional training is required.
- Replacement Designated Franchise Operator Training ($5,000 per person): This fee is charged for the training of a replacement designated franchise operator.
- Interest and Additional Expense Fee on Late Payments (1.5% per month): If payments are late, an interest fee of 1.5% per month is charged, along with an additional expense fee of 5% of the amount due for any amounts not paid within 10 business days of the due date.
Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.
How much does
it cost
to start a
Marco’s Pizza
franchise?
The total investment is estimated to be between $286,852 and $805,927.
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Does
Marco’s Pizza
provide
training
to its
franchisees?
Marco's Pizza has a comprehensive training program. Here's a breakdown of the training process:
Initial Training Program:
- The Designated Franchise Operator, who is responsible for managing the store, must be proficient in English (reading, writing, and speaking).
- Before opening the store, the Designated Franchise Operator is required to complete Marco's Pizza's initial training program.
- This program spans eight weeks and is conducted at Marco's training center, known as "Marco’s University", located in Toledo, Ohio.
- Additionally, training is provided at a certified training store, chosen based on Marco's discretion.
Continuous Training:
- Upon opening the store, franchisees must implement and maintain a continuous training program for their employees.
Does
Marco’s Pizza
provides
territory
protection?
Except for this territorial protection, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that Marco’s Pizza owns, or from other channels of distribution or competitive brands that Marco’s Pizza controls.
During the franchise term, Marco’s Pizza will not operate, nor grant anyone but you the right to operate, a Marco’s Pizza Store in your Area of Responsibility, except with respect to Special Venues.
However, Marco’s Pizza and other franchisees may operate and license others to operate Stores at any location outside the Area of Responsibility, regardless of their proximity to the Area of Responsibility or the Permitted Location or their actual or threatened impact on sales at the Franchised Business.
Can a
Marco’s Pizza
franchise
be run as
a passive
investment?
For Marco's Pizza, franchisees must ensure that each store is under the direct on-premises supervision of a manager at all times the store is open for business. The Designated Franchise Operator, who is responsible for supervising all store managers, must also supervise the on-premises store operation management duties.
If the franchisee is a corporation, partnership, or limited liability company, each owner holding 5% or more of the entity must complete certain obligations as outlined in the Franchise Agreement.
At least one Designated Franchise Operator must devote their entire working time, which must be no less than 40 hours per week, to the on-site management and supervision of the Store.
While franchisees can employ store managers to direct the daily operations, the Designated Franchise Operator must oversee the Store Manager.
