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Founded in 1959 and with a franchising history dating back to 1962, Little Caesars has become the fastest growing pizza chain in America. Business is still booming with Little Caesars having added more restaurants to its chain in 2009 than any other pizza brand in the world. Little Caesars pizza is made with fresh, high-quality ingredients: dough made daily in stores, fresh, never-frozen cheese, and a sauce made of vine-ripened tomatoes and a secret spice blend. The pizzeria is also known for innovation in its products, offering its Crazy Bread®, Pizza Pizza®, and Hot-N-Ready® products Little Caesars was named “Best Value in America” among all quick service restaurants for four consecutive years in Sandelman & Associates’ Quick-Track® research study, one of the largest food industry studies. Little Caesars is also devoted to giving back to the community. Established in 1985, the company’s pizza restaurant on wheels, “Love Kitchen,” has been serving more than two million people in need and the homeless. Unfortunately, Little Caesars does not permit the publication of any detail about the number of operating units it has.
Investment Required
The fee for a Little Caesars franchise is $20,000, with a $5,000 reduction for existing franchisees and for veterans (service-disabled veterans do not have to pay the fee). Little Caesars provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| Item | Established Low Range | Established High Range |
|---|---|---|
| Initial Franchise Fee | $0-$15,000 | $20,000 |
| Rent | $1,500 | $6,000 |
| Leasehold Improvements | $50,000 | $300,000 |
| Fixtures, Equipment, and Signage | $80,000 | $170,000 |
| Grand Opening Advertising | $11,000 | $20,000 |
| Expenses While Training | $7,000 | $9,000 |
| Initial Inventory and Supplies | $25,000 | $35,000 |
| Insurance | $500 | $1,500 |
| Utility Expenses | $1,000 | $5,000 |
| Licenses and Permits | $50 | $6,000 |
| Additional Funds (3 Months) | $17,000 | $47,000 |
| Total Initial Investment | $193,050 | $619,500 |
Ongoing Expenses
Little Caesars franchisees pay royalty fees equal to 6% of gross sales.
What You Get: Training and Support
Little Caesars has a strong belief in supporting its franchisees. Initial training, a comprehensive program lasting six weeks at corporate headquarters and company-owned restaurants in Detroit, Michigan, covers topics such as store operations, cash management, human resources, customer service, marketing and quality assurance. A two-day real estate/architecture/equipment training program is completed before franchisees continue the rest of the training. Little Caesars supports franchisees with the tools of a proven system, including ongoing training, architectural services to help with design and construction, preferred lenders to assist with financing, ongoing research and development of new products, and continuing, effective marketing programs and support.
Territory
Little Caesars grants protected territories with a radius equal to one mile, except under certain circumstances (e.g. in highly populated urban areas).
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of the Bond’s Top 100 Franchises publication.