Area Representative Program

Typical Area Representative Territory

A typical Area Representative territory will have the ability to build 20 – 25 stores. Marco’s Franchising LLC reserves the right to consider isolated areas that will support a lower store count.

Requirements of the Area Representative

Meet our Development schedules – Franchise Signed and Franchises Opened
Developed Stores must maintain a 70% sales average compared to the system wide sales average
Must have an approved training store in operation within 18 months. A penalty will be assessed if a training store is not established in 24 months
Provide on-going operational and marketing support working a minimum of 40 hours a week

Development Schedule

Area Representatives will be held to two collaborative schedules; Franchise Signed and Franchises Opened. Both schedules will be based off a 5 year span and be specific to that DMA.

Term of Agreement

Area Representative will be subject to a 2 Year Probation period and then an 8 year agreement – totalling 10 year term with 5 year extensions there after.

Fee Structure

60% of the Franchise Fee to Marco’s Franchising LLC – based on a $17,500 Franchise Fee
40% of the Franchise Fee to Area Representative – based on a $17,500 Franchise Fee
- NOTE: However, if the Area Representative does not own a training store then a portion of their Franchise Fee will be retained by Marco’s Franchising LLC to provide funds to pay the store providing training
40% of the royalties collected will be paid to the Area Representative paid once per period on the 15th of the period for the preceding period

Approval

Marco’s Franchising LLC must approval all franchisee applicants for Area Representative stores.

Training

Marco’s Franchising LLC will provide a comprehensive training program and training manual will be developed – at least one week in Toledo
Marco’s Franchising LLC will provide training up to 2 principals when Area Representative agreement is signed. Additional initial training will cost $7,500 per person.
Area Representative must attend annual franchise meetings or be subject to a $1,000 fine if written approval is not acquired from Marco’s Franchising LLC.

Marketing Support

Marco’s Franchising LLC will not require the Area Representative to spend any money on local advertising, however we will recommend an Area Rep spend advertising on specific time tested programs we have utilize in franchisee recruitment. Nationally, Marco’s Pizza will support “lead” advertising between $250,000-$300,000 annually. Marco’s Franchising LLC has the right to assess a monthly fee that is applied towards “lead” advertising. Marco’s Franchising LLC internal marketing department will allow Area Representatives to utilize any or all designed creative with approval.

Licensing

The cost to the Area Representative of complying with franchise laws will be at the cost of Area Representative.

Marco's Pizza Franchise