HOW MUCH CAN I MAKE?
AN IN-DEPTH VIEW OF THE MARCO’S PIZZA FRANCHISE REVENUE OPPORTUNITY
Take a closer look
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. In 2017, traditional franchised stores achieved average net royalty sales of $686,643.
Consider this breakdown of the pizza franchise revenue from the Item 19 of our current Franchise Disclosure Document:
OPERATING RESULTS
The charts below provide the average Net Royalty Sales of the 703 Franchised Stores and 40 Company-Managed Stores which were open for business for 52 weeks of the fiscal year ending December 31, 2017. 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 the charts are the specific results for MPI, our founder’s 16 Franchised Stores. There are no guarantees that you will make this amount.
NET ROYALTY SALES OF SYSTEMWIDE STORES – 2017
| Average Net Royalty Sales of 743 System-wide Stores | $682,337 |
|---|---|
| Highest Volume Store | $1,520,364 |
| Median Volume of System-wide Stores | $628,234 |
| Lowest Volume Store | $276,251 |
| No. of Stores Above the System-wide Store Average | 311 (42%) |
| No. of Stores Below the System-wide Store Average | 432 (58%) |
| No. of Stores Above the System-wide Store Median | 372 (50%) |
| No. of Stores Below the System-wide Store Median | 371 (50%) |
NET ROYALTY SALES OF 551 TRADITIONAL FRANCHISED STORES – 2017
| Average Net Royalty Sales of 551 Traditional Franchised Stores | $686,643 |
|---|---|
| Highest Volume Store | $1,497,898 |
| Median Volume of Traditional Stores | $639,813 |
| Lowest Volume Store | $275,251 |
| No. of Traditional Stores Above the Traditional Store Average | 226 (41%) |
| No. of Traditional Stores Below the Traditional Store Average | 325 (59%) |
| No. of Traditional Stores Above the System-wide Store Average | 229 (42%) |
| No. of Traditional Stores Below the System-wide Store Average | 322 (58%) |
| No. of Traditional Stores Above the System-wide Store Median | 279 (51%) |
| No. of Traditional Stores Below the System-wide Store Median | 272 (49%) |
NET ROYALTY SALES OF 40 COMPANY-MANAGED STORES – 2017
| Average Net Royalty Sales of 40 Company-Managed Stores | $835,634 |
|---|---|
| Highest Volume Store | $1,520,364 |
| Median Volume for Company-Managed Stores | $800,910 |
| Lowest Volume Store | $370,366 |
| No. of System-wide Stores Above the Company-Managed Store Average | 169 (23%) |
| No. of System-wide Stores Below the Company-Managed Store Average | 574 (77%) |
| No. of Company-Managed Stores Above the System-wide Store Average | 29 (73%) |
| No. of Company-Managed Stores Below the System-wide Store Average | 11 (28%) |
| No. of Company-Managed Stores Above the System-wide Store Median | 31 (78%) |
| No. of Company-Managed Stores Below the System-wide Store Median | 9 (23%) |
NET ROYALTY SALES OF 16 FRANCHISED STORES OWNED AND OPERATED BY THE FOUNDER OF MARCO’S IN MATURE MARKETS
| Average Net Royalty Sales of 16 Franchised Stores owned and operated by the Founder of Marco's in mature markets | $1,070,167 |
|---|---|
| Highest Volume Store | $1,408,907 |
| Median Volume of Founder Stores | $1,077,300 |
| Lowest Volume Store | $701,241 |
| 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 System-wide Store Average | 16 (100%) |
| No. of Founder Stores Below the System-wide Store Average | 0 (0%) |
| No. of Founder Stores Above the System-wide Store Median | 16 (100%) |
| No. of Founder Stores Below the System-wide Store Median | 0 (0%) |
STATEMENT OF TYPICAL EXPENSES FOR COMPANY-MANAGED STORES AT AVERAGE VOLUME SALES
The costs presented in the chart below are the average and median revenue/costs incurred by the 40 Company-Managed Stores that were open and managed by our affiliates during the entire 52-week period ending December 31, 2017. 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.
| Average (Dollars) | Median (Dollars) | % of Net Royalty Sales | |
|---|---|---|---|
| Revenue: | |||
| Net Royalty Sales | $835,364 | $818,827 | 100.0% |
| Direct Costs: | |||
| Total Food | $217,180 | $216,779 | 26.0% |
| Paper | $37,102 | $35,765 | 4.4% |
| Total Cost of Food, Paper Misc. Shipping | $254,313 | $252,544 | 30.4% |
| Direct Labor | $147,845 | $147,695 | 17.7% |
| Management Salary | $35,166 | $35,299 | 4.2% |
| Gross Profit (Operations) | $398,041 | $390,038 | 47.6% |
| Indirect Labor Expense: | |||
| Taxes on Labor | $22,046 | $21,443 | 2.6% |
| Worker's Compensation | $4,036 | $5,488 | 0.5% |
| Bonuses | $5,031 | $2,831 | 0.6% |
| Insurance & Employee Benefits | $8,941 | $8,826 | 1.1% |
| Total Indirect Labor Expense | $40,207 | $38,885 | 4.8% |
| Adjusted Gross Profit | $357,834 | $351,153 | 42.8% |
| Operating Expenses: | |||
| Delivery Expense | $43,488 | $43,952 | 5.2% |
| Bad Debts & Fees | $274 | $322 | 0.0% |
| Bank Fees | $1,168 | $1,600 | 0.1% |
| Cash (Over) & Short | $828 | $1,194 | 0.1% |
| Credit Card Fees | $10,923 | $10,406 | 1.3% |
| Administrative Services | $1,098 | $1,059 | 0.1% |
| Crew Meetings & Special Training | $3,308 | $3,964 | 0.4% |
| Laundry & Uniforms | $1,746 | $1,515 | 0.2% |
| Repairs & Maintenance | $8,250 | $10,016 | 1.0% |
| Online Ordering Fees | $5,306 | $2,733 | 0.6% |
| Theft & Security | $417 | $165 | 0.0% |
| Supplies - General/Janitorial | $9,218 | $9,616 | 1.1% |
| Utilities/Telephone/Trash Removal | $23,087 | $22,799 | 2.8% |
| Total Operating Expenses | $109,072 | $108,147 | 13.1% |
| Gross Controllable Profit | $248,762 | $243,006 | 29.8% |
| Fixed & Non-Controllable Expenses: | |||
| Rent | $33,458 | $29,093 | 4.0% |
| Licenses & Taxes | $644 | $550 | 0.1% |
| Royalties | $45,945 | $45,035 | 5.5% |
| Auto Insurance | $4,151 | $3,745 | 0.5% |
| Insurance - Business | $3,798 | $4,461 | 0.5% |
| Total Fixed Expenses | $87,997 | $88,905 | 10.5% |
| Advertising: | |||
| Advertising - Brand Development | $8,349 | $8,189 | 1.0% |
| Advertising - Regional | $22,479 | $24,904 | 2.7% |
| Advertising - Other | $34,898 | $33,464 | 4.2% |
| Total Advertising Expense | $65,726 | $64,658 | 7.9% |
| Total Fixed & Non-Controllable Expenses | $153,722 | $148,350 | 18.4% |
| Store Level Income Before Owners Compensation, Taxes, Depreciation, Interest & Amortization | $95,040 | $95,822 | 11.4% |
See results
Brian Fairbanks had worked a few jobs at other pizza places before becoming a franchisee, but when he and his father had the opportunity to purchase an existing Marco’s Pizza restaurant, they knew this was the right brand for them.
“We’ve increased sales by about 40%-45% since we’ve owned it. We wanted to do it right, we wanted steady, sustainable growth, and Marco’s has helped us pretty much every step of the way with that,” says Fairbanks. “There’s so much opportunity out there, and it just seems that everywhere we go, especially the new markets we go into, they just take off so fast because the product is great, the customer service is great and I would just say the sheer amount of opportunity is great.”
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For in-depth details about our pizza franchise revenue and profit potential, download our free franchise report from the form below. You can also learn more by calling us and speaking to a franchise development representative.
