Pizza Ranch Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$985,000

-

$3,996,000

LOCATIONS

211

Emily

Updated

April 11, 2024

Is

Pizza Ranch

a franchise?

Yes,
Pizza Ranch
currently
accepts
franchise
applications

Pizza Ranch is a fast-casual restaurant chain with most of its locations concentrated in the Midwest US.

The chain was established in 1985 by Adrie Groeneweg and Lawrence Vander Esch. Groeneweg, who was offering pizza recipes developed by his mother, Lorraine, opened the restaurant's first location in Hull, Iowa.

Pizza Ranch serves a wide variety of pizza, chicken, fresh salads, Buffalo wings, and sweet, satisfying desserts. A distinctive feature that has endeared it to many is its beloved buffet-style dining experience.

The chain began its franchising journey in 1984 under Pizza Ranch Inc. and moved its headquarters to Orange City, Iowa. Today, Pizza Rnach has expanded its culinary and presence in over 210 restaurants operating across 14 states in the United States.

How many

Pizza Ranch

franchises

are there?

In 2022, there were
211
outlets in
the United
States, of which
205
are franchises, and
6
are corporate-owned.

What are the

Pizza Ranch

franchise

fees?

Advertising fee

3.00%

Initial Franchise Fee ($25,000 - $35,000)

  • The initial franchise fee is based on the type of restaurant and the territory. The fee is due upon signing the Franchise Agreement.

Royalty (4% of Gross Revenues)

  • After the opening of the Licensed Restaurant, the franchisee is required to pay a monthly royalty fee. This fee is the greater of $500 per month or 3.5% of the monthly Gross Revenues of the Licensed Restaurant. Additionally, there's a service fee equal to 0.5% of monthly Gross Revenues.

Advertising (Up to 3% of Gross Revenues)

  • The franchisee must contribute to the Marketing and Production Fund. The current contribution rate is 2.25% of Gross Revenues. The franchisee is also required to spend on local and regional advertising, which currently requires spending the difference between the amounts paid to the Marketing and Production Fund and 3% of Gross Revenues of the Licensed Restaurant for the preceding month. This amount can be increased upon 6 months’ notice.
  • The franchisee must also participate in promotional campaigns established by the company or the Advertising Cooperative. This includes costs related to marketing start-up materials, prize contests, sweepstakes, Ranch Rewards, FunZone Rewards for Restaurants with a FunZone, or other company-sponsored loyalty programs, coupon programs, posters, giveaway items, and gift cards. These expenditures are in addition to the contributions to the Marketing and Production Fund or the Advertising Cooperative and amounts spent on local and regional advertising.

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

Pizza Ranch

franchise?

It costs between
$985,000
and
$3,996,000
to start a
Pizza Ranch
franchise.

Depending on the choice of establishment, the initial investment for a Pizza Ranch restaurant varies. For those considering the Retrofit/Leased option, based on a 6,000 sq. ft. space, the initial investment is estimated to range from $984,875 to $2,430,500. Alternatively, for investors interested in a New Ground-Up Restaurant, the projected investment spans from $2,489,975 to $3,995,500. A detailed breakdown of these costs can be found in the table provided below.

Pizza Ranch Franchise Investment Breakdown:

Type of Expenditure Amount
Franchise Fee $30,000
Furniture, Fixtures & Equipment $473,375 to $694,000
Arcade Games $330,000 to $400,000
Leasehold Improvements $0 to $1,075,000
Construction Costs $1,439,600 to $1,950,000
Architect/Engineering Fees $46,000 to $130,000
Land $0 to $600,000
Pre-Opening Training Expenses $51,500 to $74,000
Food Used During Team Member Training $5,500 to $9,000
Start-Up Costs $23,500 to $43,500
Interest on Pre-Opening Loans $5,000 to $45,000
Working Capital $20,000
Total $2,489,975 to $3,995,500

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

Pizza Ranch

provide

training

to its

franchisees?

Yes,
Pizza Ranch
provides
training

Before opening a Pizza Ranch restaurant, franchisees undergo a detailed training program. This program encompasses various aspects of running the restaurant, from operational techniques to using the required equipment and computer systems.

The Principal or General Manager, Assistant General Manager, Kitchen Managers, and Guest Services Manager are all required to complete the Manager in Training Program.

This training takes place at a Certified Training Restaurant or another location designated by Pizza Ranch. The subjects covered in the training include Advertising/Marketing, Accounting/Profitability, Restaurant Operations, Restaurant Management, Guest Relations, and Soft Skills like Culture and Leadership.

Does

Pizza Ranch

provides

territory

protection?

Franchisees of Pizza Ranch® are not granted an exclusive territory. They are, however, provided with a designated location to operate their Pizza Ranch® restaurant. This means that while they have a specific location in which to conduct their business, there is no broader territory protection against the opening of other Pizza Ranch® restaurants or outlets.

The franchisees' rights are limited to the operation of their restaurant at the designated location. Any deviation from this location or any attempt to operate outside of it would require the franchisor's prior written consent. This setup emphasizes the importance of adhering to the designated location and understanding that there is no broader territorial exclusivity.

Can a

Pizza Ranch

franchise

be run as

a passive

investment?

For those considering a franchise with Pizza Ranch, active participation in the restaurant's operations is a key requirement.

The franchise must always have a "Principal" owner who has an ownership interest, serves as the General Manager or is responsible for hiring and overseeing a qualified General Manager, and oversees or remains active in overseeing the general management and operations of the restaurant.

This Principal also has the authority to sign on behalf of the franchise on all contracts and commercial documents.

In addition to the Principal, the franchise must designate at least one "General Manager." This individual is expected to invest their full time and attention to the on-premises general management of the day-to-day operations of the restaurant.

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