Round Table Pizza Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$347,000

-

$1,092,000

LOCATIONS

411

Emily

Updated

May 2, 2024

Is

Round Table Pizza

a franchise?

Yes,
Round Table Pizza
currently
accepts
franchise
applications

Round Table Pizza is a leading American fast-food franchise with most of its locations in the heart of the Midwest United States.

Round Table Pizza offers a delectable menu that includes pizza, chicken wings, salads, appetizers, mouthwatering desserts, and a delightful range of complementary beverages.

The chain was established by Bill Larson in 1959, with the first restaurant in Menlo Park, California. Round Table Pizza embarked on its franchising journey in 1962 and today it is part of the FAT Brands Inc.family, a leading franchising company headquartered in Atlanta, Georgia.

By the end of 2022, the chain had grown and expanded its presence across over 400 locations in the United States and five other nations around the world.

How many

Round Table Pizza

franchises

are there?

In 2022, there were
411
outlets in
the United
States, of which
409
are franchises, and
2
are corporate-owned.

What are the

Round Table Pizza

franchise

fees?

Advertising fee

4.00%

Initial Franchise Fee ($25,000)

This fee grants the franchisee the right to operate a single Round Table Pizza restaurant. The fee is due upon signing the Franchise Agreement and is non-refundable.

Royalty Fee (4% or $750 per month)

Franchisees are required to pay the greater of 4% of their Net Sales or a minimum royalty amounting to $750 per month. This fee is for the ongoing right to use the Round Table Pizza trademarks and systems.

Advertising (4%)

Franchisees must contribute an amount equal to 4% of the Net Sales of their restaurant to the RTP brand and marketing fund. This fund is used for marketing, advertising, and promoting the brand and its products.

Some franchisees from past agreements might not contribute to the Marketing Fund at the same rate. They are also required to advertise locally and provide evidence of their advertising efforts.

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

Round Table Pizza

franchise?

It costs between
$347,000
and
$1,092,000
to start a
Round Table Pizza
franchise.

Round Table Pizza offers potential franchisees the opportunity to operate different models of their restaurant. The total investment necessary to begin operation varies based on the model:

  1. Dine-In Model: This model offers and sells menu items for dining at the restaurant premises as well as via delivery and carryout services. The estimated initial investment for the Dine-In Model ranges from $504,000 to $1,062,500.
  2. Delivery Carry Out Unit (DCU) Model: This model is only authorized to offer and sell menu items for delivery and carry out from the restaurant premises. The estimated initial investment for the DCU Model ranges from $327,800 to $511,500.

Initial Investment for a Dine-In Model

Type Of Expenditure Amount
Initial Franchise Fee $25,000
Travel And Living Expenses While Training $1,500 - $3,500
Real Estate And Improvements $175,000 - $600,000
Furniture, Fixture & Equipment $210,000 - $295,000
Point Of Sale Systems and Related Technology $35,100 - $59,000
Opening Inventory/Smallwares $12,000 - $15,000
Interior Décor Package/Exterior Signage $15,000 - $35,000
Uniforms $1,000 - $2,000
Insurance $4,500 - $7,000
Additional Funds – 3 Months $25,000 - $50,000
Total $504,100 - $1,091,500

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

Round Table Pizza

provide

training

to its

franchisees?

Yes,
Round Table Pizza
provides
training

Before opening a Round Table Pizza outlet, franchisees are required to undergo a detailed training program. This program is designed to equip them with the necessary skills and knowledge to run the restaurant efficiently.

The training typically covers various aspects of restaurant operations, including operational techniques, equipment usage, computer software and hardware training, and maintaining the brand's operational standards.

In addition to the initial training, Round Table Pizza emphasizes the importance of ongoing training. Franchisees may be required to attend additional training sessions, depending on their prior restaurant experience.

These sessions can cover a range of topics, from operations and orientation to crew training, product make-up, dough room procedures, shift management, and sales initiatives.

Does

Round Table Pizza

provides

territory

protection?

Franchisees are provided with a geographical area amounting to a one (1) mile radius around the primary entrance of their Restaurant, referred to as the "Designated Territory".

During the term of the Franchise Agreement, Round Table Pizza commits not to own, locate, or license any third party the right to own or locate another Restaurant within this Designated Territory, except for certain "Non-Traditional Sites".

However, franchisees do not receive an exclusive territory. They may face competition from other franchisees, outlets owned by Round Table Pizza, or other channels of distribution or competitive brands controlled by Round Table Pizza.

Can a

Round Table Pizza

franchise

be run as

a passive

investment?

When it comes to franchising with Round Table Pizza, active involvement in the restaurant's operations is a fundamental requirement. Franchisees are expected to put forth their full-time and best efforts to ensure the restaurant's effective functioning.

If the franchisee is an individual, they have the option to act as the Manager or appoint someone else for the role. On the other hand, if the franchisee is a business entity, they are mandated to designate a Manager.

The restaurant should always be under the direct, on-site supervision of either the franchisee or a Manager. Both the franchisee and the Manager are required to successfully complete Round Table Pizza's training program.

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