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 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 Average311 (42%)
No. of Stores Below the System-wide Store Average432 (58%)
No. of Stores Above the System-wide Store Median372 (50%)
No. of Stores Below the System-wide Store Median371 (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 Average226 (41%)
No. of Traditional Stores Below the Traditional Store Average325 (59%)
No. of Traditional Stores Above the System-wide Store Average229 (42%)
No. of Traditional Stores Below the System-wide Store Average322 (58%)
No. of Traditional Stores Above the System-wide Store Median279 (51%)
No. of Traditional Stores Below the System-wide Store Median272 (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 Average169 (23%)
No. of System-wide Stores Below the Company-Managed Store Average574 (77%)
No. of Company-Managed Stores Above the System-wide Store Average29 (73%)
No. of Company-Managed Stores Below the System-wide Store Average11 (28%)
No. of Company-Managed Stores Above the System-wide Store Median31 (78%)
No. of Company-Managed Stores Below the System-wide Store Median9 (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 Average8 (50%)
No. of Founder Stores Below the Founder Store Average8 (50%)
No. of Founder Stores Above the System-wide Store Average16 (100%)
No. of Founder Stores Below the System-wide Store Average0 (0%)
No. of Founder Stores Above the System-wide Store Median16 (100%)
No. of Founder Stores Below the System-wide Store Median0 (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$818,827100.0%
Direct Costs:
Total Food$217,180$216,77926.0%
Paper$37,102$35,7654.4%
Total Cost of Food, Paper Misc. Shipping$254,313$252,54430.4%
Direct Labor$147,845$147,69517.7%
Management Salary$35,166$35,2994.2%
Gross Profit (Operations)$398,041$390,03847.6%
Indirect Labor Expense:
Taxes on Labor$22,046$21,4432.6%
Worker's Compensation$4,036$5,4880.5%
Bonuses$5,031$2,8310.6%
Insurance & Employee Benefits$8,941$8,8261.1%
Total Indirect Labor Expense$40,207$38,8854.8%
Adjusted Gross Profit$357,834$351,15342.8%
Operating Expenses:
Delivery Expense$43,488$43,9525.2%
Bad Debts & Fees$274$3220.0%
Bank Fees$1,168$1,6000.1%
Cash (Over) & Short$828$1,1940.1%
Credit Card Fees$10,923$10,4061.3%
Administrative Services$1,098$1,0590.1%
Crew Meetings & Special Training$3,308$3,9640.4%
Laundry & Uniforms$1,746$1,5150.2%
Repairs & Maintenance$8,250$10,0161.0%
Online Ordering Fees$5,306$2,7330.6%
Theft & Security$417$1650.0%
Supplies - General/Janitorial$9,218$9,6161.1%
Utilities/Telephone/Trash Removal$23,087$22,7992.8%
Total Operating Expenses$109,072$108,14713.1%
Gross Controllable Profit$248,762$243,00629.8%
Fixed & Non-Controllable Expenses:
Rent$33,458$29,0934.0%
Licenses & Taxes$644$5500.1%
Royalties$45,945$45,0355.5%
Auto Insurance$4,151$3,7450.5%
Insurance - Business$3,798$4,4610.5%
Total Fixed Expenses$87,997$88,90510.5%
Advertising:
Advertising - Brand Development$8,349$8,1891.0%
Advertising - Regional$22,479$24,9042.7%
Advertising - Other$34,898$33,4644.2%
Total Advertising Expense$65,726$64,6587.9%
Total Fixed & Non-Controllable Expenses$153,722$148,35018.4%
Store Level Income Before Owners Compensation, Taxes, Depreciation, Interest & Amortization$95,040$95,82211.4%

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