How To's
How Much Does A Little Caesars Franchise Cost?
One of the top pizza chains in the United States has a proven business model that creates opportunities for franchisees all over the globe. To venture into franchising, read more about Little Caesars franchise cost.
Franchise Description
Little Caesars Pizza was established in 1959 and has been into franchising since. Its headquarters is located in Detroit, Michigan.
The franchisor’s name is Little Caesars Enterprises, Inc. Franchisees will sell pizza, chicken wings, Crazy Bread products, and other related products. Generally, they are a carryout-only restaurant and sometimes with a drive-thru window.
Franchise Training Details
Before deciding on the Little Caesars franchise, you need to know this franchise training overview:
- Before the training program, new franchisees must complete these pre-training steps:
- Discovery Day and interview (6 hours)
- Real estate, architectural, and equipment training (12 hours)
- On-Site Evaluation (8 hours)
- The franchisor allows one person from each franchisee to attend training.
- All trainees must finish the training program consisting of 64-hour classroom training and 250-hour OJT.
- The franchisor provides food safety certification like the National Restaurant Association ServSafe program as part of the initial training.
- Franchisees must attend all meetings, seminars, and conferences the franchisor may consider mandatory.
Franchise Territory
Here is the territory allowed in the franchise:
- The Franchise Agreement grants franchisees the right to operate the restaurant only at the approved location.
- It defines a territory within which the franchisor will not establish, operate, or franchise any entity to develop or run a business using the proprietary marks and system.
- The protected territory is usually defined as the territory within a one-mile radius of the approved location. Under certain circumstances, however, the protected territory may be reduced to a distance of 0.5 miles or less, or a protected territory won’t be allowed.
Obligations and Restrictions
Here are the franchise obligations and restrictions:
- The franchisor requires that the franchisee or an individual approved by the franchisor devote their full-time and best efforts to on-site management and operation of the restaurant.
- To guarantee that the highest degree of quality and service is maintained, franchisees must operate the restaurant in strict adherence to the standards, methods, and specifications that the franchisor prescribes in the guidelines.
Franchise Terms of Agreement and Renewal
The initial length of the franchise is ten years, renewable for another ten years, subject to complete requirements.
Financial Assistance
Little Caesar Enterprises, Inc. does not offer direct or indirect financing. Also, it does not guarantee a franchisee’s note, lease, or obligation.
Did You Know?
Here are five Little Caesars fun facts:
- Little Caesars’ co-founder used to be a baseball player. Mike Ilitch of the Detroit Tigers opened the first Little Caesars with his wife Marian in 1959.
- The couple now has two sports teams – the Detroit Tigers and the Detroit Red Wings.
- They used to sell spaghetti buckets back in the 90s.
- Little Caesar’s tagline “Pizza! Pizza!” is a 35-years-old campaign.
- The pretzel pizza was Little Caesar’s first limited-run pie in a decade.
Little Caesars Franchise Cost
Your Investment
Here is the Little Caesars franchise cost.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $20,000 |
| Rent | $1,500 | $7,000 |
| Leasehold Improvements | $50,000 | $1,000,000 |
| Fixtures, Equipment and Signage | $200,000 | $400,000 |
| Grand Opening Advertising | $12,000 | $20,000 |
| Training Expenses | $12,000 | $16,500 |
| Start-up Inventory and Supplies | $63,000 | $154,000 |
| Insurance | $1,200 | $2,000 |
| Utility Expenses | $1,000 | $9,000 |
| Licenses and Permits | $1,000 | $20,000 |
| Additional Funds – 3 months | $17,000 | $47,000 |
| ESTIMATED TOTAL | $378,700 | $1,695,500 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty | The greater of 6% of gross sales for each one-week period or $100 for each one-week period. |
| Advertising Fee | Up to 7% of gross sales, as determined by the franchisor. |
| Blue Line Purchases | Varies. |
| Caesar Vision System Annual Support Fee | Up to $3,000 per year per restaurant; currently $2,600 per year per restaurant. |
| Digital Transactions Fee | Up to $0.36 per transaction (currently $0.31). |
| Security and Technology Fee | Up to $0.06 per credit or debit transaction (currently $0.04). |
| Delivery Fees – Orders via Little Caesars App or Website | Delivery fee – $2.99 Service fee – 11% of food and beverage order (maximum $3.50) Small order fee – $2.00 Late-to-Portal fee – $0.50 per late order |
| Delivery Fees – Orders via DoorDash App or Website | Service fee – 17% of food and beverage order. |
| Learning Management System Fee | Currently $260 per year per restaurant. |
| Per Diem for Onsite Caesar Vison Support | $1,500 per day per technician, plus travel expenses. |
| M.I.K.E System Connection Fee | None currently. |
| Audit by Franchisor | The franchisor’s actual costs of audit (travel, lodging, wage expenses, and accounting and legal costs). |
| Follow-up Inspections | The franchisor’s actual costs, including travel expenses, meals, lodging, and compensation of its representatives. |
| Additional Trainees | Not more than $500 per attendee for initial training of additional employees. |
| Transfer Fee | Varies from $0 to $5,000 per restaurant. |
| Renewal Fee | $5,000 |
| Indemnification | Will vary with circumstances. |
| Special Marketing, Management, and Operational Assistance Performed at Franchisee’s Request | Reasonable fee plus expenses. |
| Private Securities Offering | $25,000 plus additional sums to cover the franchisor’s out-of-pocket costs to review the materials if greater than $25,000. |
| Relocation Fee | $2,500 |
| Interest | 18% per year or the maximum rate permitted by law where the restaurant is located, whichever is less. |
| Late Fee | Franchisor’s then-current late fee for overdue amounts. For overdue financial statements, tax returns, or other required reports, the then-current late fee for each 30 days (or portion thereof) that the financial statement, tax return or other report is overdue. |
| Insufficient Funds Fee | Up to $50 per occurrence. |
| Missing Sales or Late Sales Reporting Fee | Up to $50 per occurrence. |
| Missed Meeting Fee | Varies. |
| Management Fee | Commercially reasonable fee. |
| Liquidated Damages for Holding Over after Expiration | Calculated according to formula in FDD. |
| Liquidated Damages Upon Termination for Franchisee’s Default | Calculated according to formula in FDD. |
| Liquidated Damages – Failure to Comply with Post-Termination Obligations | $250 per day. |
| Costs and Legal Fees | Franchisor’s actual costs. |
If you’re ready to start your Little Caesars franchise, visit their website for more information. And for other franchising info, read more here at Franchise HOW!