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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 thrive.

Taking Orders for Delivery at Marco's PizzaFranchise Business Review included Marco’s in its Top 200 ranking in 2015. 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

Chart 1 below provides the average Net Royalty Sales of the 546 System-wide Stores (510 Franchised Stores and 36 Affiliate-Managed Stores) which were open for business for 52 weeks in our 2015 fiscal year ended December 27, 2015. Also, included in Chart 2 is the comparative results for the 36 Affiliate-Managed Stores and for Stores operated by the Founder, the longest operating independently-owned franchisee with 16 Franchised Stores.

Chart #1 – Net Royalty Sales of System-wide Stores – 2015

Average Net Royalty Sales of 546 System-wide Stores $683,486
No. of Stores Above the Average 233 (43%)
No. of Stores Below the System-wide Store Average 313 (57%)
Highest Volume Store $1,523,882
Lowest Volume Store $257,209
Average Net Royalty Sales of 32 Affiliate-Managed Stores (see chart below) $814,186
No. of System-wide Stores Above the Affiliate-Managed Store Average 133 (24%)
No. of System-wide Stores Below the Affiliate-Managed Store Average 413 (76%)
No. of Affiliate-Managed Stores Above the System-wide Store Average 27 (75%)
No. of Affiliate-Managed Stores Below the System-wide Store Average 9 (25%)
Average Net Royalty Sales of 16 Franchised Stores operated by the Founder (the franchised stores owned and operated by the founder of Marco’s in mature markets) $1,011,906
No. of Founder Stores Above the Founder Store Average 9 (56%)
No. of Founder Stores Below the Founder Store Average 7 (44%)
No. of Founder Stores Above the System-wide Store Average 15 (94%)
No. of Founder Stores Below the System-wide Store Average 1 (6%)

Chart #2 – Net Royalty Sales of 36 Affiliate Managed Stores – 2015

Chart 2 below provides infomation regarding the Net Royalty Sales of the 36 Affiliate Managed Stores that were oprn for business for 52 weeks in our 2015 fiscal year.

Highest Volume Store $1,150,571
Lowest Volume Store $354,889
Average Net Royalty Sales of 36 Affiliate Managed Stores $814,186
No. of Affiliate Managed Stores with Net Royalty Sales Above this Average 17 (47%)
No. of Affiliate Managed Stores with Net Royalty Sales Below this Average 19 (53%)
No. of Affiliate Managed Stores with Net Royalty Sales above the System-wide Store Average 27
No. of Affiliate Managed Stores with Net Royalty Sales Below the System-wide Store Average 9

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

The costs presented in the chart below are the actual averages of the costs incurred by the 36 Affiliate Managed Stores that were open during the entire 52-week period ending December 27, 2015. 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 $814,186 100.00%
Direct Costs:
Total Food $212,502 26.1%
Paper $36,638 4.5%
Total Cost of Food, Paper Misc. Shipping $249,140 30.6%
Direct Labor $144,925 17.8%
Management Salary $34,196 4.2%
Gross Profit (Operations) $385,925 47.4%
Indirect Labor Expense:
Taxes on Labor $24,426 3.0%
Worker's Compensation $3,257 0.4%
Bonuses $5,699 0.7%
Insurance & Employee Benefits $8,958 1.1%
Total Indirect Labor Expense $42,338 5.2%
Adjusted Gross Profit $343,587 42.2%
Operating Expenses:
Delivery Expense $35,010 4.3%
Recruiting and Onboarding $825 0.1%
Bank Fees $866 0.1%
Cash (Over) & Short $790 0.1%
Credit Card Fees $10,584 1.3%
Crew Meetings & Special Training $775 0.1%
Laundry & Uniforms $1,628 0.2%
Repairs & Maintenance $8,142 1.0%
Online Ordering Fees $185 0.0%
Theft & Security $273 0.0%
Supplies - General $5,699 0.7%
Supplies - Janitorial $3,257 0.4%
Trash Removal $816 0.1%
Telephone $5,241 0.7%
Utilities $16,284 2.0%
Total Operating Expenses $90,375 11.1%
Gross Controllable Profit $253,212 31.1%
Fixed & Non Controllable Expenses:
Rent $29,311 3.6%
Licenses & Taxes $814 0.1%
Royalties $19,540 2.4%
Auto Insurance $3,257 0.4%
Insurance - Business $4,071 0.05%
Total Fixed Expenses $56,993 7.0%
Advertising:
Advertising - Brand Development $8,142 1.0%
Advertising - Regional $24,426 3.0%
Advertising - Other $33,382 4.1%
Advertising - Flyers $2,442 0.3%
Total Advertising Expense $68,392 8.4%
Total Fixed & Non-Controllable Expenses $125,385 15.4%
Store Level Income Before Owners Compensation, Interest & Administration - Note 2 $127,827 15.7%

 

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