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Marco’s offers something unique in the pizza franchise segment — a chance to get in on the ground floor.

If you want a chance to run your own franchise with the fastest-growing pizza chain in the country, we have the experience to help our franchisees succeed.

Taking Orders for Delivery at Marco's Pizza

 

Franchise Business Review included Marco’s in its Top 200 ranking in 2014. The ranking evaluates franchise systems for franchisee satisfaction based on interviews with hundreds of owners with more than 350 companies.

Consider this breakdown from Item 19 of our Franchise Disclosure Document:

OPERATING RESULTS

Charts 1 and 2 below provide the average Net Royalty Sales of the 240 Franchised Stores and 29 Company-Managed Stores which were open for business for 52 weeks in our 2012 fiscal year. The Net Royalty Sales figures after coupons and discounts for the Franchised Stores are based upon unaudited royalty reports supplied by franchise owners. Included in Chart 1 are the specific results for MPI, our largest independently-owned franchisee with 16 Franchised Stores.

Chart #1 – Net Royalty Sales of System-wide Stores – 2012

Average Net Royalty Sales of 269 System-wide Stores$670,582
No. of Stores Above the System-wide Store Average119 (44%)
No. of Stores Below the System-wide Store Average150 (56%)
Average Net Royalty Sales of 29 Affiliate-Managed Stores (see Chart #2 below)$806,025
No. of System-wide Stores Above the Affiliate-Managed Store Average59 (22%)
No. of System-wide Stores Below the Affiliate-Managed Store Average210 (78%)
Average Net Royalty Sales of MPI Stores (the largest independently owned franchisee with 16 Stores)$813,651
No. of MPI Stores Above the MPI Store Average8 (50%)
No. of MPI Stores Below the MPI Store Average8 (50%)
No. of MPI Stores Above the System-wide Store Average55 (20%)
No. of MPI Stores Below the System-wide Store Average214 (80%)

Chart #2 – Net Royalty Sales of 29 Affiliate Managed Stores – 2012

Highest Volume Store$1,153,692
Lowest Volume Store$560,349
Average Net Royalty Sales of 29 Affiliate Managed Stores$806,025
No. of Affiliate Managed Stores with Net Royalty Sales above the Average12 (41%)
No. of Affiliate Managed Stores with Net Royalty Sales Below the Average17 (59%)

Chart #3 - Statement of Typical Expenses for Affiliate-Managed Stores at Average Volume Sales

The costs presented in Chart 3 below are the actual averages of the costs incurred by the 29 Company-Managed Stores that were open during the entire 52-week period ending December 25, 2012. The operating data for these Stores were re-stated to a common format. Revenues and expenses were eliminated which did not directly relate to the operation of Marco’s Pizza Stores, or the determination of Store earnings before interest, income taxes and depreciation and amortization. Some cost categories are omitted in order not to mislead you as these cost categories are highly dependent upon factors beyond our ability to explain.

 

 
29 Stores Average
Net Royalty Sales
% of Gross Sales
REVENUE
Gross Sales$806,025100%
Less Total Coupons$29,3324%
Net Royalty Sales$761,36896%
DIRECT COSTS
Total Food$219,32927.1%
Paper$36,2714.5%
Freight$4,0300.5%
Total Cost of Food, Paper and Freight$259,54032.1%
Direct Labor$148,30918.4%
Management Salary
Gross Profit (Operations)
INDIRECT LABOR EXPENSE
Taxes on Labor
Worker's Compensation
Bonuses
Insurance & Employee Benefits
Total Indirect Labor Expense
Adjusted Gross Profit
OPERATING EXPENSES
Delivery Expense$24,1813%
Bad Debts & Fees
Bank Fees$1,6120.2%
Cash (Over) & Short
Credit Card Fees$8,0601%
Crew Meetings & Special Training$8060.1%
Laundry & Uniforms$8060.1%
Repairs & Maintenance$7,2540.9%
Theft & Security$2230%
Supplies and General$4,0300.5%
Supplies and Janitorial$2,4180.3%
Trash Removal$1,6120.2%
Telephone$4,8360.6%
Utilities$14,5081.8%
Total Operating Expenses
Gross Controllable Profit
FIXED & NON CONTROLLABLE EXPENSES
Rent
Licenses & Taxes$8060.1%
Royalties
Auto Insurance$2,4180.3%
Insurance and Business$3,2240.4%
Total Fixed Expenses
Advertising
Advertising and Brand Development$8,0601%
Advertising and Regional
Advertising and Other$46,7495.8%
Advertising and Flyers$3,2240.4%
Total Advertising Expense
Total Fixed & Non-Controllable Expenses
Store Level Income Before Owners Compensation, Interest & Administration

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