About Little Caesars Franchise
Little Caesars is one of the largest and most recognized pizza franchise brands in the world, famous for its Hot N Ready concept that delivers affordable, ready to go pizza to millions of customers daily.
The brand has been franchising since 1962, building more than six decades of brand equity in the quick service restaurant space with a menu featuring pizza, Crazy Bread, chicken wings, and other popular items.
The franchise fee is $20,000.
Little Caesars Franchise Cost & Fees
Minimum Investment
$379K
Average Investment
$1.0M
Maximum Investment
$1.7M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 | One-time payment upon signing |
| Royalty Fee | The greater of 6% of Gross Sales for each one-week period or $100 for each one-week period of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 7% of Gross Sales, as determined by us | National brand fund |
| Total Investment Range | $378,700 – $1,695,500 | Includes build-out, inventory, working capital |
The investment range of $379K–$1.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of 6% of Gross Sales for each one-week period or $100 for each one-week period) and marketing fee (Up to 7% of Gross Sales, as determined by us) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | 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 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Varies from $0 to $5,000 per Restaurant |
| Renewal Fee | $5,000 |
| Technology Fee | Up to $3,000 per year per Restaurant; currently $2,600 per year per Restaurant (Caesar Vision system annual support fee) |
| Audit Fee | Our actual costs of audit (travel, lodging, wage expenses, and accounting and legal costs) |
| 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 (“LMS”) fee | Currently $260 per year per Restaurant |
| Per diem for onsite Caesar Vision support | Currently $1,500 per day per technician, plus travel expenses |
| M.I.K.E. system connection fees | None currently (see Remarks) |
| Follow-up inspections | Our actual costs, including travel expenses, meals, lodging, and compensation of our representatives |
| Additional trainees | Not more than $500 per attendee for initial training of additional employees |
| Optional training | Will vary based on length and type of training |
| Indemnification | Will vary with circumstances |
| Special marketing, management, and operational assistance performed at your request | Reasonable fee plus expenses |
| Private Securities Offering | $25,000 plus additional sums to cover our 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 | Our then-current late fee (up to $500 as of the date of this disclosure document) for overdue amounts; For overdue financial statements, tax returns, or other required reports, our 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 | Reasonable estimate of the cost we incurred in expectation of your attendance. Will vary based on the length and type of meeting |
| Management Fee | Commercially reasonable fee |
| Liquidated Damages for Holding Over after Expiration | See Note 13 for formula |
| Liquidated Damages – Upon Termination for Your Default | See Note 14 for formula |
| Liquidated Damages – Failure to Comply with Post-Termination Obligations | $250 per day |
| Costs and Legal Fees | Our actual costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 64 classroom hours and 250 on-the-job hours |
| Classroom Training | 64 |
| On-the-Job Training | 250 |
| Training Location | In-store training is offered in Detroit Metro, LA Metro, San Diego, San Jose, Phoenix, and Tucson. Business training is in Detroit or virtually via Microsoft Teams. Franchise development workshops are virtually via Microsoft Teams. ServSafe Certification is a self-paced online course and exam. |
| Additional Training | Franchisees and designated employees must attend additional required and optional training programs as specified. Required additional training is provided without charge, but optional training may incur a fee. Franchisees must pay an annual fee of $260 for access to digital training materials and are responsible for travel, lodging, meals, and wages for trainees. The franchisor may terminate the Franchise Agreement if training requirements are not met. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically a one-mile radius, but may be reduced to ½ mile or less in highly populated urban areas, or not granted at all in certain cities (e.g., New York City boroughs). |
| Description | The Franchise Agreement grants the right to operate a Restaurant only at an Approved Location. A 'Protected Territory' is typically defined as a one-mile radius around the Approved Location where the franchisor will not establish or operate, or franchise others to establish or operate, a business using the Proprietary Marks and System. However, this territory is not exclusive, as the franchisor retains rights to operate Non-Traditional Restaurants (e.g., food trucks, units in arenas, convenience stores) within the Protected Territory and to sell products under the Proprietary Marks through other channels. The franchisor can reduce the radius or not grant a Protected Territory at all under certain circumstances. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years (5 years for a Food Truck) |
| Renewal Term | 1 renewal term of 10 years (5 years for a Food Truck) |
| Renewal Fee | $5,000 ($2,500 for a Food Truck) |
| Renewal Conditions | Franchisee must satisfy all monetary obligations, not be in default, substantially comply with the Franchise Agreement and operating standards, be on good terms with the franchisor, have the right to remain at the Approved Location (or obtain approval for a new one), renovate/modernize the Restaurant to current standards, sign a new franchise agreement and renewal addendum, sign a general release of claims, and satisfy obligations to lessor and suppliers. |
| Transfer Fee | Varies from $0 to $5,000 per Restaurant |
| Transfer Conditions | Transfers require franchisor approval. Conditions include: satisfaction of all monetary obligations to franchisor and affiliates, no default, execution of a general release of claims, transferee signing the then-current franchise agreement (which may have different terms), demonstration of meeting franchisor's educational, managerial, business, moral, and financial standards, refurbishment of the Restaurant, and payment of a transfer fee. Transferees cannot own more than 100 restaurants or have two restaurants more than 100 miles apart (exceptions may apply). |
| Termination for Cause | The franchisor may terminate for cause without opportunity to cure for over 20 reasons, including: failure to sign a lease or open on time, abandonment of the restaurant, conviction of a felony or crime of moral turpitude, unauthorized transfer of interest, failure to comply with non-compete covenants, disclosure of confidential information, knowingly maintaining false records, lease termination, three or more notices of default within 12 months, overdue payments, material misrepresentations, common law fraud, willful or repeated failure to meet specifications, knowingly underreporting gross sales, failure to maintain insurance, failure to complete training, misappropriation of funds, refusal to permit inspection, or breach of a material provision that goes to the essence of the agreement. |
| Non-Compete Period | During the term of the agreement, and after termination/expiration: 1 year within the Designated Market Area of any Little Caesars restaurant, and 2 years within the Designated Market Area where the franchisee's Restaurant was located. |
| Non-Compete Details | Prohibits direct or indirect ownership, management, advising, or employment in a quick or fast service restaurant selling pizza, pasta, sandwiches, chicken wings, and/or related products. For LC Express units, the sale of prepared foods other than pizza or pizza-related products by the primary business in the host location will not violate non-compete restrictions. Covenants are subject to state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or an approved owner/individual for a business entity) must devote full time and best efforts to on-site management and operation of the Restaurant. For multiple restaurants, personal supervision of all operations is required. Approved on-site operators must successfully complete the pre-opening training program and sign confidentiality and non-compete agreements. All direct or indirect owners and their spouses must sign a personal guarantee for the franchisee's financial obligations. |
| Required Suppliers | Franchisees must purchase all current and future products, ingredients, equipment, supplies, and materials (including proprietary items like spice blend, dough mix, oil, yeast, and veggie seasonings) solely from Blue Line (an affiliate) or other designated sources. Pepsi-Cola is the exclusive supplier for packaged and fountain beverages. Signs must be purchased from approved vendors. |
| Supply Restrictions | The franchisor has no obligation to consider additional suppliers proposed by franchisees and reserves the right to approve or disapprove suppliers. Approval may be specific to a facility, product, or restaurant, and can be revoked. Franchisees must pay any expenses incurred by the franchisor in evaluating proposed suppliers. If payments to Little Caesar, Blue Line, or affiliates are not made on time, shipments may be suspended or refused, or prepayment may be required. |
| Franchisor Revenue from Suppliers | Blue Line, an affiliate, had revenue of $1,642,168,959 from sales to Little Caesars® franchisees in fiscal year 2021, including consideration from other suppliers. The franchisor (Little Caesar Enterprises, Inc.) did not receive any revenue from these sales in fiscal year 2021. Blue Line earns a profit on goods/services sold to franchisees and receives consideration from unaffiliated suppliers, a portion of which is used to defray costs of organizing and conducting the annual franchisee business conference. |
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. |
Little Caesars Franchise Earnings — Item 19
Little Caesars does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Little Caesars does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Little Caesars Litigation & Risk Flags
6 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.
Little Caesars System Growth
Total Units
4181
Franchised
3601
Company-Owned
580
Little Caesars currently operates 3601 franchised locations and 580 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 70 | 117 | 4214 |
| 2020 | 75 | 101 | 4209 |
| 2021 | 47 | 73 | 4181 |
Transfers: 654 | Closures: 274
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Total Assets
$5.0M
Audited by Deloitte & Touche LLP for year ending December 31.
Little Caesars Franchise — FAQ
The total investment to open a Little Caesars franchise ranges from $378,700 to $1,695,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $20,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Little Caesars charges a royalty fee of The greater of 6% of Gross Sales for each one-week period or $100 for each one-week period of gross sales, plus a Up to 7% of Gross Sales, as determined by us contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Little Caesars 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 Little Caesars to ensure you have the most up-to-date version.
Little Caesars does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Little Caesars has been franchising since 1962. The FDD shows an investment range of $378,700-$1,695,500, a The greater of 6% of Gross Sales for each one-week period or $100 for each one-week period royalty, and no Item 19 earnings disclosure. There are 6 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 $20,000 and the total investment ranges from $378,700 to $1,695,500 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 Little Caesars and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Little Caesars or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com