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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 thrive.

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 – 2014

Average Net Royalty Sales of 413 System-wide Stores$671,630
No. of Stores Above the Average173 (42%)
No. of Stores Below the System-wide Store Average240 (58%)
Highest Volume Store$1,825,249
Lowest Volume Store$182,929
Average Net Royalty Sales of 32 Affiliate-Managed Stores (see Chart #2 below)$823,154
No. of System-wide Stores Above the Affiliate-Managed Store Average88 (21%)
No. of System-wide Stores Below the Affiliate-Managed Store Average325 (79%)
Average Net Royalty Sales of 16 Franchises Stores operated by the Founder (the franchised Stores owned and operated by the founder of MarcoÕs in mature markets Ð 16 Stores)$956,894
No. of Founder Stores Above the Founder Store Average9 (56%)
No. of Founder Stores Below the Founder Store Average7 (44%)
No. of Founder Stores Above the Systemwide Store Average15 (94%)
No. of Founder Stores Below the Systemwide Store Average1 (6%

Chart #2 – Net Royalty Sales of 32 Affiliate Managed Stores – 2014

Highest Volume Store$1,136,604
Lowest Volume Store$582,698
Average Net Royalty Sales of 32 Affiliate Managed Stores$823,154
No. of Affiliate Managed Stores with Net Royalty Sales Above this Average12 (38%)
No. of Affiliate Managed Stores with Net Royalty Sales Below this Average20 (62%)
No. of Affiliate Managed Stores with Net Royalty Sales above the System-wide Store Average26
No. of Affiliate Managed Stores with Net Royalty Sales Below the System-wide Store Average6

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 32 Affiliate Managed Stores that were open during the entire 52-week period ending December 28, 2014. The operating data for these Stores were re-stated to a common format. 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$823,154100.00%
Direct Costs:
Total Food$238,45029.00%
Paper$39,2374.80%
Miscellaneous Shipping$1920.00%
Total Cost of Food, Paper Misc. Shipping$277,87933.80%
Direct Labor$149,72618.20%
Management Salary$35,4084.30%
Gross Profit (Operations)$360,14143.70%
Indirect Labor Expense:
Taxes on Labor$21,4502.60%
Worker's Compensation$6,4210.80%
Bonuses$8,4901.00%
Insurance & Employee Benefits$6,6690.80%
Total Indirect Labor Expense$43,0305.20%
Adjusted Gross Profit$317,11138.50%
Operating Expenses:
Delivery Expense24,5333.00%
Bad Debts & Fees$210.00%
Bank Fees9730.10%
Cash (Over) & Short$4680.00%
Credit Card Fees$10,1091.20%
Crew Meetings & Special Training$5660.00%
Laundry & Uniforms$1,4370.20%
Repairs & Maintenance$6,7440.80%
Online Ordering Fees$1400.00%
Theft & Security$1940.00%
Supplies - General$5,1840.60%
Supplies - Janitorial$2,7810.30%
Trash Removal$1,0190.10%
Telephone$5,1410.60%
Utilities$15,7321.90%
Total Operating Expenses$75,0428.80%
Gross Controllable Profit$242,06929.70%
Fixed & Non Controllable Expenses:
Rent$29,9803.60%
Licenses & Taxes$6410.10%
Royalties$20,5802.50%
Auto Insurance$2,9100.40%
Insurance - Business$3,6200.40%
Total Fixed Expenses$57,7317.00%
Advertising:
Advertising - Brand Development$8,2311.00%
Advertising - Regional$26,6563.20%
Advertising - Other$35,3784.30%
Advertising - Flyers$2,2070.30%
Total Advertising Expense$72,4728.80%
Total Fixed & Non-Controllable Expenses130,20315.80%
Store Level Income Before Owners Compensation, Interest & Administration - Note 2111,86613.90%

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