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The Top 4 Pizza Franchises: A Comparison by the Numbers (Part 2 of 2)

Last updated on December 17, 2011 by Franchise Chatter Leave a Comment
in Franchise Reviews, Multi-Unit Franchise, Pizza Franchises, Prospective Franchisees

30 year food franchise industry veteran tells you what you need to know before investing in a food franchise.  Click here.

3.  Papa Murphy’s (Ranked #32 in Entrepreneur Magazine’s Top 5oo Franchises of 2011)

What makes this pizza franchise different?

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  • The Papa Murphy’s pizza franchise is unique because it’s a pure take-out operation, with no baking done in the store.  Customers take home a freshly prepared — but uncooked — pizza and they bake the pizza at home.
  • This pizza franchise is easier to run and requires less investment because there’s no pizza delivery, no ovens, and no dine-in component.

What are the financial requirements to become a franchisee?

  • Minimum net worth of $250,000
  • Liquid assets of $80,000 (cash,  stocks, secured equity)
  • Ability to obtain financing as needed

What are the non-financial requirements to become a franchisee?

  • Commitment to being a full-time, active owner-operator
  • Strong customer service skills and being a “people person”

What is the initial franchise fee?

  • $25,000

What is the monthly royalty fee?

  • 5% of net sales

What is the required contribution to advertising?


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  • No information available.

What is the total initial investment?

  • The total initial investment for a Papa Murphy’s pizza franchise ranges from  $195,000 to $380,000.

What is the size of an average store?

  • No specific information is available but since this is a take-out concept with no in-store baking required,  the retail space needed is much smaller than a traditional pizza franchise restaurant.

Does the owner need to be the operator?

  • Yes, the owner of a Papa Murphy’s pizza franchise must be a full-time, hands-on owner-operator.

How long is the training period?

  • 1 week of classroom training at the corporate office  in Vancouver, WA  and hands-on training at a certified local training store (unspecified length).

Bottomline: The Papa Murphy’s pizza franchise is the best choice for an owner-operator who’d like to run a very streamlined and manageable pizza take-out business, with no delivery and no baking, and whose budget is on the lower end.

Franchises Ranked by Average Revenues and Profits
4.  Cici’s Pizza Buffet (Ranked #67 in Entrepreneur Magazine’s Top 5oo Franchises of 2011)

What makes this pizza franchise different?

  • The Cici’s Pizza Buffet franchise is a one-of-a-kind pizza concept that serves unlimited pizza, pasta, salads, and desserts in a buffet format — all for under $5 per person (childeren under 3 eat for free), although prices may vary per location.
  • In addition to the buffet, Cici’s Pizza restaurants have a takeout counter where customers can pick up pizzas, wings, dippin’ sticks, cinnamon rolls and soda by calling ahead of time.  Or they can simply walk in and choose from a limited takeout menu featuring all the favorites, which are always ready to go — no waiting necessary.
  • This is a pizza franchise that emphasizes providing  great customer service and cultivating a welcoming atmosphere for all guests.

What are the financial requirements to become a franchisee?

  • The franchisee must have sufficient cash equal to at least 30% of the total initial investment to be able to finance the remainder.

What are the non-financial requirements to become a franchisee?

  • A Cici’s Pizza owner-operator shall serve as the restaurant’s General Manager who works at the store full-time, with no other business interests that will detract from this role.
  • The owner-operator must be service oriented, a good communicator, and have a successful business track record.  This person must have high energy and sufficient physical stamina to keep going in this fast moving environment.

What is the initial franchise fee?

  • The initial franchise fee for a Cici’s Pizza franchise is $30,000.

What is the monthly royalty fee?

  • The first $28,850 of weekly gross sales is subject to a royalty of 4%.
  • The incremental weekly gross sales from $28,851 to $33,650 is subject to a royalty of 5%.
  • The incremental weekly gross sales from $33,651 to $38,450 is subject a royalty of 5.5%
  • The incremental weekly gross sales over $38,450 is subject to a royalty of 6%

What is the required contribution to advertising?

  • Each franchise is required to  contribute $2,300 or 3% of gross sales per month, whichever is greater,  to a general advertising fund.
  • Upon written notice from the franchisor, the franchisee must spend up to 2% of gross sales each month on local advertising.

What is the total initial investment?

  • The total initial investment for a Cici’s Pizza franchise ranges from $461,343 to $714,912.

What is the size of an average store?

  • The average Cici’s Pizza franchise restaurant runs from around 3,600 to 4,000 square feet, with roughly 160 seats.

Does the owner need to be the operator?

  • No.  An investor can team up with an operator who will run the daily operations.  The Cici’s Pizza corporate office can assist in finding a suitable operator.

How long is the training period?

  • The training period for a Cici’s Pizza franchise ranges from 8 to 12 weeks.

Bottomline: The Cici’s Pizza Buffet franchise is ideal for someone who’d like to own a traditional restaurant with a novel concept (pizza buffet) that stands out from other pizza chains, and can afford the larger initial investment.

Click here to read Part 1

Click here to read my review of Red Brick Pizza

Click here to read my review of Toppers Pizza


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Tagged as: Cicis, Papa Johns, Papa Murphy's, Pizza Hut

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