About Ledo Pizza System Franchise
Ledo Pizza is a regional pizza franchise that has been franchising since 1989, known for its signature rectangular shaped pizza made with a thin, flaky crust and fresh, never frozen toppings.
The brand has built a loyal customer base, particularly in the Mid Atlantic region, with a menu that also includes subs, pasta, salads, and wings.
Ledo Pizza restaurants serve dine in, carryout, and delivery customers.
Ledo Pizza System Franchise Cost & Fees
Minimum Investment
$206K
Average Investment
$439K
Maximum Investment
$673K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000.00 | One-time payment upon signing |
| Royalty Fee | 5% of total bi-monthly gross sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of total bi-monthly gross sales (Cooperative) and 1% of total gross sales (Individual store) | National brand fund |
| Total Investment Range | $206,250 – $672,500 | Includes build-out, inventory, working capital |
The investment range of $206K–$673K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of total bi-monthly gross sales) and marketing fee (1% of total bi-monthly gross sales (Cooperative) and 1% of total gross sales (Individual store)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Advance Advertising and Promotion Costs | $250 | $1,000 |
| Equipment and Supplies | $75,000 | $225,000 |
| Opening Inventory | $5,000 | $13,000 |
| First Month's Rent | $3,000 | $15,000 |
| Signs | $500 | $7,500 |
| Additional Funds - 3 months | $10,000 | $25,000 |
| Lease Deposits | $3,000 | $15,000 |
| Leasehold Improvements | $70,000 | $300,000 |
| Miscellaneous Start-Up Costs | $5,000 | $15,000 |
| Utility Deposits | $500 | $6,000 |
| Impact fees and permits | $1,000 | $10,000 |
| Insurance | $3,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000.00 |
| Renewal Fee | Higher royalty fee and greater expenditures for advertising and promotion than original contract |
| Audit Fee | Payable only if audit shows an understatement by the greater of 5% of payments due or $500.00. |
| Sublicense | $1,000.00 |
| Interest & Late Fees | Then current late fee and, if applicable, interest on unpaid amount at 1.5% per month or highest rate allowed by law. |
| Inspections | 15% of our costs for inspections in excess of two (2) due to non-compliance. |
| Testing | $500 to $2,500 range for each product plus the amount of any third party fees and expenses such as any required nutritional analysis. |
| Optional | Cost of service as designated by separate agt. |
| Administrative Charge | $200.00 |
| Additional Investment | Not to exceed $5,000 per year |
| Liquidated Damages (In-term Covenants Not to Compete) | $1,000/day |
| Liquidated Damages (Post-term Covenants Not to Compete) | $100,000 |
| Loss of Bargain | Royalty fees that would have been payable for the balance of the term, but not more than thirty-six (36) months. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | one to three weeks |
| Classroom Training | 46 hours |
| On-the-Job Training | 94 hours |
| Training Location | Principal office of Ledo Pizza System in Annapolis, Maryland and one or more franchise locations. |
| Additional Training | Ongoing and additional training may be provided if required or offered by the franchisor. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | one (1) mile around the location |
| Description | You receive an exclusive territory of one (1) mile around your approved site, where no other Ledo Pizza® store will be physically located. The franchisor reserves the right to adjust the territory based on population density, traffic barriers, or other criteria. The franchisor may operate or grant franchises for other Ledo Pizza® stores whose exclusive territory overlaps yours, provided they are not physically located within your one-mile exclusive territory. The franchisor may also operate commissaries/distributorships or sell pre-packaged Ledo Pizza® products to non-restaurant businesses within your territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Five (5) years |
| Renewal Term | Five (5) additional Five (5) year terms |
| Renewal Fee | Higher royalty fee and greater expenditures for advertising and promotion than original contract |
| Renewal Conditions | Must be in compliance with the Franchise Agreement, give 6-12 months' notice, have met or exceeded the Gross Sales Quota, and be able to maintain the current or an approved alternative site. |
| Transfer Fee | $10,000.00 |
| Transfer Conditions | New franchisee must qualify, pay a $10,000 transfer fee, execute a new franchise agreement, complete training, and the transferring franchisee must execute a release of claims. |
| Termination for Cause | Franchisor can terminate for various defaults, including assignment for benefit of creditors, failure to pay debts, bankruptcy filing, failure to continuously operate, lease cancellation, failure to meet sales quotas in 2 consecutive or any 3 years, repeated failure to submit reports or pay fees, felony conviction, material misrepresentation, failure to dispose of a deceased/incapacitated franchisee's interest, failure to comply with maximum retail prices, or other failures to comply with the agreement or operating procedures (with cure periods of 3 or 10 days depending on the default). |
| Non-Compete Period | During the term of the franchise and for 3 years after termination or expiration. |
| Non-Compete Details | During the term, no involvement in any food and related products carry-out or eat-on premises business anywhere in the U.S. without prior written consent. Post-term, no ownership, employment, or involvement in any dine-in or carry-out food products business for 3 years or within 10 miles of the former Ledo Pizza System franchise. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | There is no specific requirement for you to personally participate in the direct operation of the franchise, but it is strongly recommended. If not owner-operated, a designated manager must have successfully completed the required training program and be approved by the franchisor. All employees, including managers, must execute a Confidentiality Agreement. |
| Required Suppliers | Franchisees are required to purchase telephone hardware from Pizza Cloud and use a POSitouch point of sale computer system with POSitouch software. They must also use Mobo Systems, Inc. ("Olo") as their online ordering provider and have annual Hardware and Software Maintenance agreements from their local Positouch licensed vendor. |
| Supply Restrictions | All Ledo Pizza® ingredients, beverage products, cooking materials, containers, packaging materials, other paper and plastic products, utensils, uniforms, menus, administrative forms, cleaning and sanitation materials, and other supplies must conform to franchisor specifications and quality standards. Franchisor may require exclusive purchase from approved suppliers and has the right to test and evaluate proposed suppliers, charging fees for this service. |
| Franchisor Revenue from Suppliers | The franchisor may charge licensing fees to suppliers of goods and services, generally ranging from 1% to 4% of franchisee purchases from such suppliers. They also receive supplier rebates, which are used for various purposes deemed beneficial to the system and/or franchisees, including advertising and marketing assistance. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Ledo Pizza System Franchise Earnings — Item 19
Average Revenue
$1.2M
Median Revenue
$1.2M
Revenue Range
$204K – $2.4M
Sample Size
102 units
Past financial performance does not guarantee future results. Individual results will vary.
Ledo Pizza System Litigation & Risk Flags
2 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Ledo Pizza System System Growth
Total Units
107
Franchised
107
Company-Owned
0
Ledo Pizza System currently operates 107 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 6 | 5 | 103 |
| 2020 | 4 | 3 | 104 |
| 2021 | 4 | 1 | 107 |
Transfers: 1 | Closures: 0
State Registrations
Registered in 3 states: MD, NY, VA
Franchisor Financials (Item 21)
Revenue
$10.3M
Net Income
$4.5M
Total Assets
$6.4M
Audited by TMDL CPAs & Consultants for year ending December 31.
Ledo Pizza System Franchise — FAQ
The total investment to open a Ledo Pizza System franchise ranges from $206,250 to $672,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000.00. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Ledo Pizza System charges a royalty fee of 5% of total bi-monthly gross sales of gross sales, plus a 1% of total bi-monthly gross sales (Cooperative) and 1% of total gross sales (Individual store) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Ledo Pizza System Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Ledo Pizza System to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Ledo Pizza System franchise owners report average revenue of $1.2M and median revenue of $1.2M. This is based on a sample of 102 units. Past performance does not guarantee future results.
Ledo Pizza System has been franchising since 1989. The FDD shows an investment range of $206,250-$672,500, a 5% of total bi-monthly gross sales royalty, and includes an Item 19 earnings disclosure. There are 2 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000.00 and the total investment ranges from $206,250 to $672,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Ledo Pizza System and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Ledo Pizza System or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com