Franchise Information

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How Much Can I Make?

A look at the Marco’s Pizza franchise revenue opportunity

A view of tables in a dining room at a Marco’s location, with menus on televisions and the ordering counter in the background.
If you want a chance to run your own franchise with one of the fastest-growing pizza chains in the country, we have the experience to help our franchisees thrive. Consider this breakdown of the
pizza franchise revenue from the most recent Item 19 of our Franchise Disclosure Document:

OPERATING RESULTS

Charts 1 and 2 below provide the average Net Royalty Sales of the 510 Franchised Stores and 36 Affiliate-Managed Stores which were open for business for 52 weeks in our 2015 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 founder’s 16 Franchised Stores.  There are no guarantees that you will make this amount.

Chart #1 – Net Royalty Sales of Systemwide Stores – 2016

Average Net Royalty Sales of 638 Systemwide Stores $698,213
No. of Stores Above the Systemwide Store Average 265 (42%)
No. of Stores Below the Systemwide Store Average 373 (58%)
Highest Volume Store $1,496,285
Lowest Volume Store $258,974
Average Net Royalty Sales of 40 Company-Managed Stores $836,884
No. of Systemwide Stores Above the Company-Managed Store Average 155 (24%)
No. of Systemwide Stores Below the Company-Managed Store Average 483 (76%)
No. of Company-Managed Stores Above the Systemwide Store Average 28 (70%)
No. of Company-Managed Stores Below the Systemwide Store Average 12 (30%)
Average Net Royalty Sales of 16 Franchised Stores owned and operated by the Founder of Marco's in mature markets $1,044,496
No. of Founder Stores Above the Founder Store Average 8 (50%)
No. of Founder Stores Below the Founder Store Average 8 (50%)
No. of Founder Stores Above the Systemwide Store Average 15 (94%)
No. of Founder Stores Below the Systemwide Store Average 1 (6%)

Chart #2 – Net Royalty Sales of 40 Company-Managed Stores – 2016

Highest Volume Store $1,468,751
Lowest Volume Store $348,880
Average Net Royalty Sales of 40 Company-Managed Stores $836,884*
No. of Company-Managed Stores with Net Royalty Sales Above this Average 19 (48%)
No. of Company-Managed Stores with Net Royalty Sales Below this Average 21 (52%)
No. of Company-Managed Stores with Net Royalty Sales Above the Systemwide Store Average 28
No. of Company-Managed Stores with Net Royalty Sales Below the Systemwide Store Average 12

* The Average Net Royalty Sales of 40 Company-Managed Stores includes 3 Stores purchased by Company-Owned entities, during fiscal year 2016.While those 3 stores were not Company-Managed stores for part of the year, they were open and in continuous operation during the entire 2016 fiscal year.

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 37 Company-Managed Stores that were open and managed by our affiliates during the entire 52-week period ending December 25, 2016. The operating data for these Stores was provided by our affiliate and re-stated to a common format. The information was not audited. Certain 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, depreciation and amortization. Some cost categories are omitted in order not to mislead you as these cost categories may not necessarily be indicative of the costs you may incur.

Dollars % of Net Royalty
Sales
Revenue:
Net Royalty Sales $805,038 100.00%
Direct Costs:
Total Food $202,826 25.2%
Paper $35,958 4.5%
Total Cost of Food, Paper Misc. Shipping $238,784 29.7%
Direct Labor $141,498 17.6%
Management Salary $35,543 4.2%
Gross Profit (Operations) $389,213 48.5%
Indirect Labor Expense:
Taxes on Labor $21,246 2.6%
Worker's Compensation $4,036 0.5%
Bonuses $4,848 0.6%
Insurance & Employee Benefits $8,617 1.1%
Total Indirect Labor Expense $38,747 4.8%
Adjusted Gross Profit $350,466 43.7%
Operating Expenses:
Delivery Expense $41,870 5.2%
Bad Debts & Fees $264 0.0%
Bank Fees $1,126 0.1%
Cash (Over) & Short $798 0.1%
Credit Card Fees $10,527 1.3%
Administrative Services $1,058 0.1%
Crew Meetings & Special Training $3,188 0.4%
Laundry & Uniforms $1,683 0.2%
Repairs & Maintenance $7,951 1.0%
Online Ordering Fees $5,112 0.6%
Theft & Security $401 0.0%
Supplies - General/Janitorial $8,884 1.1%
Utilities/Telephone/Trash Removal $22,249 2.8%
Total Operating Expenses $105,112 12.9%
Gross Controllable Profit $245,355 30.8%
Fixed & Non Controllable Expenses:
Rent $32,243 4.0%
Licenses & Taxes $621 0.1%
Royalties $20,205 2.5%
Auto Insurance $4,001 0.5%
Insurance - Business $3,660 0.5%
Total Fixed Expenses $60,730 7.5%
Advertising:
Advertising - Brand Development $8,046 1.0%
Advertising - Regional $21,663 2.7%
Advertising - Other $33,631 4.2%
Total Advertising Expense $63,340 7.9%
Total Fixed & Non-Controllable Expenses $124,070 15.4%
Store Level Income Before Owners Compensation, Taxes, Depreciation, Interest & Administration $121,285 15.4%

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For in-depth details about pizza franchise revenue and profit potential, download our free franchise report. You can also learn more by exploring our research pages.

 

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