Are you looking for a renowned, oldest, and rapidly growing Pizza franchise? Here is some good news – Little Caesar offers an incredible opportunity to become a franchisee and it would certainly end your research for a Food and Beverages chain.
In this article, we’ll dive deep into the Little Caesars Franchise with capital requirements, fee, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
- Franchise Fee: $20000
- Royalty Fee: 6%
- Advertising Fee: 7%
- Liquid capital: $150,000
- Net worth: $350,000
- Profit margin(Gross): Est. 30-40%
- Total Initial Investment: $379,000 to $1,695,500
Table of Contents
Overview of Little Caesars Franchise
Founded in 1959 by Mike and Marian Ilitch, Little Caesars is the third-largest pizza chain in the United States, behind Pizza Hut and Domino’s Pizza. The chain is also renowned as one of the largest and fastest growing food and beverages franchise in the US.
With its expertise of over 60 years, Little Caesars has established itself as a leading player in this industry that primarily serves a variety of pizzas, wings, brownies, and other snacks and beverages.
According to current estimate, Little Caesars boasts more than 5500 locations across several cities in the United states and other countries, and its continues to grow at a rapid rate.
Little Caesar Pizza offers world class support and makes significant investments in new technology to help your business stay relevant with customers, so are you ready to join the Pizza revolution.
Please continue reading if you are passionate about food franchises & this little snippet about the Little Caesars chain excites you.
We will offer comprehensive and well-researched information regarding the Little Caesars chain, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.
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Little Caesars – The Journey
From its first pizza store in Garden City, Michigan, a suburb of Detroit, to becoming the third largest pizza chain in the US and spreading across more than 25 countries, the Pizza chain is inspiring.
With this strategy, the Little Caesars has uniquely positioned itself in the fast-casual space, offering flexible and distinct revenue streams.
Key facts on Little Caesars
| Sr No. | Type | Private |
| 1 | Trade Name | Little Caesars |
| 2 | Industry | Food & Beverages, Restaurant, and QSR |
| 3 | Founded | 1959 |
| 4 | Founders | Mike and Marian Ilitch |
| 5 | Headquarters | 2125 Woodward Avenue Detroit, Michigan, 48201 |
| 6 | Number of locations | Over 5500 locations |
| 7 | Area served | Across several states in the US, and other countries |
| 8 | Franchise model | Dine-in, Take away, Drive-thru |
| 9 | Menus | Pizzas, wings, brownies, and other snacks and beverages |
| 10 | Revenue | $1.1B annually(As per Zippia data in 2021) |
| 11 | Website | https://littlecaesars.com/ |
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How much does a Little Caesars Franchise Cost?
To start a Little Caesars franchise, one would at least require an initial investment starting at $379,000 to $1,695,500. This initial investment does cover the franchise fee, marketing fee, and other necessary expenses.
Nevertheless, the franchise does provide support in selection and setting up a Little Caesars outlet, but we advise you to conduct proper market research before opening an outlet.
Little Caesars Franchise Fee
The franchise fee for the Little Caesars is estimated to be $20,000. Furthermore, to qualify financially, franchise candidates and their partners/investors must have minimum net worth of $350,000 with available liquidity of $150,000.
Other Investment details:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $20,000 |
| Rent | $1,500 | $7,000 |
| Leasehold Improvements | $50,000 | $1,000,000 |
| Fixtures, Equipment and Signage | $200,000 | $400,000 |
| Grand Opening Advertising | $12,000 | $20,000 |
| Training Expenses | $12,000 | $16,500 |
| Start-up Inventory and Supplies | $63,000 | $154,000 |
| Insurance | $1,200 | $2,000 |
| Utility Expenses | $1,000 | $9,000 |
| Licenses and Permits | $1,000 | $20,000 |
| Additional Funds – 3 months | $17,000 | $47,000 |
| ESTIMATED TOTAL | $378,700 | $1,695,500 |
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Additional Cost for Little Caesars
Typically, to run and maintain a Little Caesars franchised outlet, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.
The on-going royalty fee for Little Caesars franchise is 6% and advertising fee is 7% of gross sales.
| Type of Cost | Amount and other details |
|---|---|
| Royalty | The greater of 6% of gross sales for each one-week period or $100 for each one-week period. |
| Advertising Fee | Up to 7% of gross sales, as determined by the franchisor. |
| Blue Line Purchases | Varies. |
| Caesar Vision System Annual Support Fee | Up to $3,000 per year per restaurant; currently $2,600 per year per restaurant. |
| Digital Transactions Fee | Up to $0.36 per transaction (currently $0.31). |
| Security and Technology Fee | Up to $0.06 per credit or debit transaction (currently $0.04). |
| Delivery Fees – Orders via Little Caesars App or Website | Delivery fee – $2.99 Service fee – 11% of food and beverage order (maximum $3.50) Small order fee – $2.00 Late-to-Portal fee – $0.50 per late order |
| Delivery Fees – Orders via DoorDash App or Website | Service fee – 17% of food and beverage order. |
| Learning Management System Fee | Currently $260 per year per restaurant. |
| Per Diem for Onsite Caesar Vison Support | $1,500 per day per technician, plus travel expenses. |
| M.I.K.E System Connection Fee | None currently. |
| Audit by Franchisor | The franchisor’s actual costs of audit (travel, lodging, wage expenses, and accounting and legal costs). |
| Follow-up Inspections | The franchisor’s actual costs, including travel expenses, meals, lodging, and compensation of its representatives. |
| Additional Trainees | Not more than $500 per attendee for initial training of additional employees. |
| Transfer Fee | Varies from $0 to $5,000 per restaurant. |
| Renewal Fee | $5,000 |
| Indemnification | Will vary with circumstances. |
| Special Marketing, Management, and Operational Assistance Performed at Franchisee’s Request | Reasonable fee plus expenses. |
| Private Securities Offering | $25,000 plus additional sums to cover the franchisor’s out-of-pocket costs to review the materials if greater than $25,000. |
| Relocation Fee | $2,500 |
| Interest | 18% per year or the maximum rate permitted by law where the restaurant is located, whichever is less. |
| Late Fee | Franchisor’s then-current late fee for overdue amounts. For overdue financial statements, tax returns, or other required reports, the then-current late fee for each 30 days (or portion thereof) that the financial statement, tax return or other report is overdue. |
| Insufficient Funds Fee | Up to $50 per occurrence. |
| Missing Sales or Late Sales Reporting Fee | Up to $50 per occurrence. |
| Missed Meeting Fee | Varies. |
| Management Fee | Commercially reasonable fee. |
| Liquidated Damages for Holding Over after Expiration | Calculated according to formula in FDD. |
| Liquidated Damages Upon Termination for Franchisee’s Default | Calculated according to formula in FDD. |
| Liquidated Damages – Failure to Comply with Post-Termination Obligations | $250 per day. |
| Costs and Legal Fees | Franchisor’s actual costs. |
Disclaimer: for more information on its cost and business model, please re-check with the Little Caesars franchising support team.
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Is Little Caesars Franchise Profitable?
Considering the Little Caesars’s expertise of over 60 years, a wide range of affordable & delicious menu range, and a loyal customer base, one can certainly expect to generate an impressive profit margin.
According to our estimate, if the franchisee has chosen a perfect location with high customer footfall, one can expect a gross profit margin of 30-40% with Little Caesars outlet.
What does it take to own a Little Caesars franchise?
- Interested applicant must meet the financial requirements of the franchise i.e. minimum net worth of $350,000 with available liquidity of $150,000.
- Candidates and its team should have relevant experience in restaurant/retail/entertainment management, preferably Multi-unit experience.
- Strong Leadership skills, and a strong business and financial acumen.
- Little Caesars expects its franchisee to be able to demonstrate local market knowledge.
- He/she should be committed to delivering the Little Caesars guest experience.
- Interested applicants should be passionate about guest service and be able to access and develop an experienced operating management team.
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Reasons to Own a Little Caesars Franchise
- End-to-End Support:
- The Little Caesars chain offers complete support right from site selection, construction assistance, operations training, marketing support, and assistance with acquisition of entertainment elements and related management.
- Global brand presence:
- The chain has a wide network of franchise outlets across several cities in US and other countries, that makes Little Caesars a known brand among its consumers.
- Fresh ingredients and plenty of space for leisure:
- Little Caesars offers a variety of freshly made pizzas, appetizers, and other items with a plenty of entertainment area enjoyable for adults and children of all ages.
- Awards and recognition:
- Little Caesars has been renowned and recognized by several media houses and digital platforms, which would certainly give you an edge over its competitors.
- Loyalty programs:
- The chain offers loyalty programs that attract consumers frequently, resulting in impressive profit margins.
- Expertise and Experience:
- Little Caesar’s team has expertise and experience of over 60 years, which helps them understand consumers’ needs and innovate & modify their menus accordingly.
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How to get a Little Caesars Franchise?
Getting a Little Caesars Franchise requires a relatively moderate investment and in return offers an impressive profit. Nevertheless, Little Caesars may offer several benefits, and interested candidates can take up franchise outlet locally or worldwide.
To get a Little Caesars chain franchise, please visit their official website and fill in the required details in franchise form.
Fill in the personal and location details such as Name, Email, Phone number, Interested city and State, Cash available, Net worth, and other requirements information.
Steps involved in getting a Little Caesars;
- Application and Discovery Day completion
- Eight-week in-store operations training program
- Construction of site begins
- Grand Opening
Once you submit the necessary details, the Little Caesars’s sales team will review your application and contact you based on their location feasibility.
Final Takeaway
Considering its growth potential, unique, affordable, delicious & diverse menu range, proven business model of over 60 years, brand recognition & awareness, opening a Little Caesars outlet will prove profitable to the interested aspirants.
Furthermore, the franchise is seeking qualified candidates with the financial and management resources to develop multiple locations in a market and the passion to successfully operate a concept that has been proven over the past 60 years.
With an Initial investment of $379,000 to $1,695,500 and a franchise fee of $20000, Little Caesars chain may offers an impressive profit margin to its stake holders.
The Bottom line – In case you are interested in the food and beverages, and Pizza industry and want to take advantage of the opportunity, then start this franchise by paying minimal franchisee fee. Once you gain the confidence, then you can open multi-unit model.
Good Luck!! Happy Franchising!!
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FAQ
How much does it cost to buy a Little Caesars franchise?
Ans: To open a Little Caesars outlet, one would at least require an initial investment of $379,000 to $1,695,500. There are some other cost involved and a few of them are list below;
Franchise Fee: $20000
Royalty Fee: 6%
Advertising Fee: 7%
Liquid capital: $150,000
Net worth: $350,000
Profit margin(Gross): Est. 30-40%
Total Initial Investment: $379,000 to $1,695,500How much does a Little Caesars Franchise owner make?
Ans: Considering the chain’s growth potential, rapid expansion plan, loyal customer base, more than 60years of proven business model, and immense franchise support, one can certainly churn an impressive profit margin.
However, as per our estimate and industry standards, one can anticipate to earn a gross profit margin of 30-40% with Little Caesars chain.What is the royalty fee for Little Caesars franchise?
Ans: To be an approved little Caesars franchise, one needs to have an initial investment of $379,000 to $1,695,500, and the Little Caesars franchise royalty fee is 6%.
