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How Much Can I Make?

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 – 2013

Average Net Royalty Sales of 319 System-wide Stores$660,483
No. of Stores Above the Average134 (42%)
No. of Stores Below the System-wide Store Average185 (58%)
Average Net Royalty Sales of 29 Affiliate-Managed Stores (see Chart #2 below)$806,590
No. of System-wide Stores Above the Affiliate-Managed Store Average67 (21%)
No. of System-wide Stores Below the Affiliate-Managed Store Average252 (79%)
Average Net Royalty Sales of MPI Stores (the largest independently owned franchisee with 16 Stores)$827,499
No. of MPI Stores Above the MPI Store Average9 (56%)
No. of MPI Stores Below the MPI Store Average7 (44%)
No. of MPI Stores Above the System-wide Store Average14 (88%)
No. of MPI Stores Below the System-wide Store Average2 (12%)

Chart #2 – Net Royalty Sales of 29 Affiliate Managed Stores – 2013

Highest Volume Store$1,156,872
Lowest Volume Store$535,688
Average Net Royalty Sales of 29 Affiliate Managed Stores$806,590
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%)
No. of Affiliate Managed Stores with Net Royalty Sales Above the System-wide Store Average24
No. of Affiliate Managed Stores with Net Royalty Sales Below the System-wide Store Average5

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, 2013. 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
Net Royalty Sales$806,590100%
DIRECT COSTS
Total Food$225,80128%
Paper$39,7554.9%
Miscellaneous Shipping$2670%
Total Cost of Food, Paper, Misc. Shipping$265,82332.9%
Direct Labor$148,86918.5%
Management Salary$33,8774.2%
Gross Profit (Operations)$385,02144.4%
INDIRECT LABOR EXPENSE
Taxes on Labor$20,1652.5%
Worker's Compensation___%
Bonuses$8,0661%
Insurance & Employee Benefits___%
Total Indirect Labor Expense___%
Adjusted Gross Profit___%
OPERATING EXPENSES
Delivery Expense$24,2973%
Bank Fees$1,1620.1%
Cash (Over) & Short$8070.1%
Credit Card Fees$8,9021.1%
Crew Meetings & Special Training$6570.1%
Laundry & Uniforms$1,2930.2%
Repairs & Maintenance$7,0580.9%
Theft & Security$1120%
Supplies and General$4,6820.6%
Supplies and Janitorial$2,8810.4%
Trash Removal$1,2310.2%
Telephone$4,6240.6%
Utilities$14,4851.8%
Total Operating Expenses$72,1919.1%
Gross Controllable Profit
FIXED & NON CONTROLLABLE EXPENSES
Rent$28,2313.5%
Licenses & Taxes$6280.1%
Royalties___%
Auto Insurance$2,6290.3%
Insurance and Business$3,0950.4%
Total Fixed Expenses$54,7476.8%
Advertising
Advertising - Brand Development$8,0651%
Advertising - Regional$24,1983%
Advertising - Other$44,1925.4%
Advertising - Flyers$2,9790.4%
Total Advertising Expense$79,4349.9%
Total Fixed & Non-Controllable Expenses%
Store Level Income Before Owners Compensation, Interest & Administration%

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