About MARCO'S PIZZA - Standard Franchise
Marco's Pizza is one of the fastest growing pizza franchise brands in the United States, offering a menu of made from scratch pizza, chicken wings, CheezyBread, salads, sandwiches, desserts, and beverages for dine in, carry out, and delivery.
The brand has been franchising since 2004 under Marco's Pizza Holdings, LLC, and has earned a reputation for quality ingredients and authentic Italian inspired recipes.
The franchise fee is $25,000.
MARCO'S PIZZA - Standard Franchise Cost & Fees
Minimum Investment
$242K
Average Investment
$438K
Maximum Investment
$633K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 5.5% of Net Royalty Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Net Royalty Sales (National Advertising Fund); 1% of Net Royalty Sales (Brand Development Fund, up to 1.5% max); Regional Advertising Funds (varies by region, total combined with National Advertising Fund not to exceed 5.5% of Net Royalty Sales) | National brand fund |
| Total Investment Range | $242,142 – $633,109 | Includes build-out, inventory, working capital |
The investment range of $242K–$633K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Net Royalty Sales) and marketing fee (4% of Net Royalty Sales (National Advertising Fund); 1% of Net Royalty Sales (Brand Development Fund, up to 1.5% max); Regional Advertising Funds (varies by region, total combined with National Advertising Fund not to exceed 5.5% of Net Royalty Sales)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Real Property | $6,000 | $18,666 |
| Equipment, Fixtures | $97,725 | $125,000 |
| Point of Sale Computers | $14,000 | $26,000 |
| Credit Card Processing | $6,175 | $6,175 |
| Leasehold Improvements | $34,000 | $283,642 |
| Signage | $3,000 | $12,000 |
| Opening Inventory | $7,000 | $8,500 |
| Small Supplies | $11,800 | $19,000 |
| Deposits, Pre-Paid Expenses | $2,500 | $6,000 |
| Business Licenses | $500 | $1,500 |
| Insurance | $2,366 | $16,500 |
| Training Expenses | $3,150 | $10,150 |
| Miscellaneous Expenses | $500 | $5,000 |
| Architectural and Engineering | $6,650 | $10,000 |
| Technology Fee | $336 | $336 |
| Delivery Area, streets database for POS, and shape files for POS and OLO platform Maps | $500 | $500 |
| Brand Launch Program | $15,000 | $25,000 |
| Store Technology Infrastructure System | $800 | $2,400 |
| Menu Boards | $600 | $1,200 |
| Additional Funds (3 months) | $9,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,500 - $8,250 |
| Renewal Fee | $6,250 or 25% of the then-current standard Initial Franchise Fee, whichever is greater |
| Technology Fee | $111.84 per Accounting Period |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs; plus prime; plus interest on the underpayment |
| Royalty – Key Management Employee Program | 2.5% of Net Royalty Sales (if commission is due to an Area Representative, this will increase by an additional 2.2%) |
| Royalty – Multi-Unit Franchisee Program (New Franchisees) | 4.5% for 52 Accounting Weeks if 5 agreements signed and 4+ stores open within 12 months |
| Royalty – Multi-Unit Franchisee Program (Existing Franchisees) | Stores 1-5: 5.5%; Stores 6-10: 5.0%; Stores 11-15: 4.5%; Stores 16+: 4.0% (further reduced by 1% for 52 Accounting Weeks if Growth Acceleration rebate applies) |
| Brand Development Fund | Currently, 1% of Net Royalty Sales (right to increase by 0.5% with 90 days' prior written notice) |
| Geography Based Advertising Funds | Varies by region (e.g., Atlanta 1%, Cincinnati 0.75%, Houston 1%, San Antonio 1%, Norfolk/Portsmouth/Newport News up to $350 per Accounting Period) |
| Market Advertising Cooperative | Amount set and spend determined by co-op member votes |
| Local Store Marketing | Calculated at minimum of 7% minus contributions to Brand Development Fund, Geography Based Advertising Funds, and any Ad Co-op |
| Training Registration Fee | $150 per person |
| Additional Training | $1,000 per person |
| Replacement Designated Franchise Operator Training | $5,000 per person, plus translation costs (varies) |
| Multi-Unit Leadership Excellence (MULE) Training Registration Fee | $500 per person |
| Additional Assistance | $300 per day |
| Performance Deficiencies Service Fee | $500 per continued failure to comply with operational standards or policies |
| Financial Reporting Fee | $100 per violation if financial reports are not submitted |
| Relocation | $8,250 or 1/3 of the then-current initial franchise fee |
| Insurance | Varies (As incurred) |
| Interest and Additional Expense Fees | 1.5% per month interest on all late payments, plus a 5% Additional Expense Fee |
| Delayed Opening Fee | 90% of the weekly Average System-wide Sales, multiplied by 5.5% (Required for up to 3 Accounting Periods) |
| Web Based Training (Marco’s University) | Payment included as part of the Technology Fee |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Securities Offering Fee | $2,500 or actual expenses, whichever is greater |
| Development Agreement Continuation Fee | 90% of the weekly average system-wide sales, multiplied by 5.5% (Weekly) |
| MUO & Inventory Tablet | $339 - $369 (As incurred) |
| Additional Email Fee | $120 per account per year (As incurred) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 8 weeks |
| Classroom Training | 128.44 |
| On-the-Job Training | 266 |
| Training Location | Marco’s University (training center in Toledo, Ohio) and a certified training store. Virtual options also available. |
| Additional Training | Franchisor provides additional training courses periodically on an "as available" basis, upon current terms for providing such training (which may include fees). Franchisees may be required to complete certain additional training courses if they meet specific criteria. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | An area with a 1-mile radius from your Store’s front door (if not otherwise defined by metes and bounds). |
| Description | An "Area of Responsibility" is designated around the store, typically a 1-mile radius if not otherwise defined. The franchisor will not operate or license others to operate another Marco's Pizza Store within this Area of Responsibility, except for "Special Venues." However, the franchisor retains rights to operate outside the Area of Responsibility, in Special Venues, or other non-System businesses, and to sell products through retail/wholesale channels and third-party delivery services anywhere, including within the franchisee's Delivery Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional terms of 10 years each |
| Renewal Fee | $6,250 or 25% of the then-current standard Initial Franchise Fee, whichever is greater |
| Renewal Conditions | Must be in Good Standing, comply with Renewal Requirements, sign a general release of claims, sign the franchisor's new form of franchise agreement (which may have materially different terms and higher fees), and pay the renewal fee. Must remodel the Store to current standards for new Stores. |
| Transfer Fee | $2,500 - $8,250 |
| Transfer Conditions | Transferee must qualify, pay the transfer fee, have the purchase agreement approved, complete required training, sign a general release, and sign the franchisor's current Franchise Agreement. Franchisor has a right of first refusal to acquire the franchisee's business. |
| Termination for Cause | Franchisor can terminate for reasons including: dissolution of entity, failure to open store within 270 days, abandonment or failure to actively operate for 24 consecutive hours, unauthorized transfer of interest, perpetuating a material hazard, material misstatement in application, felony conviction, illegal drug/alcohol possession at store, use of unapproved supplies, repeated failure to comply with lawful terms, default on financing, failure to maintain continuous insurance, unprofessional action, bad acts, or default of another franchise agreement under common ownership. Curable defaults typically have 10-30 days to cure, non-payment has 10 days, and certain operational failures have 24 hours. |
| Non-Compete Period | During the term of the franchise, and for a continuous two-year period following termination, expiration, or transfer. |
| Non-Compete Details | During the term: no interest in other food service businesses where pizza represents more than 10% of sales, no diversion of business/customers, no solicitation of employees, no use of Marks/confidential information. Post-term: no interest in a business whose sales are more than 10% pizza products for 2 years at the former Store location or within 5 miles of the former Store or any other Marco’s Store, no solicitation of employees, no diversion of business/customers, no use of Marks/proprietary information. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Designated Franchise Operator (who may be the franchisee) must control and be responsible for all operations of the Store and devote their entire working time (no less than 40 hours per week) to on-site management and supervision. If the franchisee is not the Principal Owner, at least two Designated Franchise Operators must be designated. For multi-unit owners, an approved above-store supervisory infrastructure plan with appropriate Designated Franchise Operators is required. |
| Required Suppliers | Franchisees must purchase equipment, fixtures, software, ingredients, paper products, and other items in accordance with franchisor specifications. Specific vendors are required for architectural/engineering services, general contractors, POS system (FoodTec Solutions), online order entry system (FoodTec Solutions), SDWAN (voice and data services), credit card processing, PepsiCo for beverages, Frito Lay for snacks, and approved suppliers for pizza sauce seasoning and pizza dough. Proprietary items must be purchased only from an Approved Distributor. |
| Supply Restrictions | Franchisees must use specific vendors for architectural/engineering services, general contractors, POS system, online order entry system, SDWAN, credit card processing, PepsiCo products, Frito Lay products, pizza sauce seasoning, pizza dough, and other proprietary items. Ovens must be from an approved manufacturer and new ovens from MPD. |
| Franchisor Revenue from Suppliers | During the fiscal year ended December 27, 2021, Marco's Franchising, LLC derived $4,258,987 (8.2% of total revenues) from required franchisee purchases and leases. Its affiliate, MP MARKS, derived $5,047,308, and MPD derived $68,395,503 from the sale of food, paper goods, equipment, supplies, uniforms, and merchandising items to franchisees. |
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. |
MARCO'S PIZZA - Standard Franchise Earnings — Item 19
Average Revenue
$946K
Median Revenue
$896K
Revenue Range
$256K – $2.4M
Sample Size
778 units
Past financial performance does not guarantee future results. Individual results will vary.
MARCO'S PIZZA - Standard Litigation & Risk Flags
3 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.
MARCO'S PIZZA - Standard System Growth
Total Units
1002
Franchised
957
Company-Owned
45
MARCO'S PIZZA - Standard currently operates 957 franchised locations and 45 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 83 | 52 | 875 |
| 2020 | 65 | 28 | 912 |
| 2021 | 66 | 17 | 957 |
Transfers: 171 | Closures: 97
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$95.2M
Net Income
$10.5M
Total Assets
$34.8M
Audited by BDO USA, LLP for year ending December 26, 2021.
MARCO'S PIZZA - Standard Franchise — FAQ
The total investment to open a MARCO'S PIZZA - Standard franchise ranges from $242,142 to $633,109, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
MARCO'S PIZZA - Standard charges a royalty fee of 5.5% of Net Royalty Sales of gross sales, plus a 4% of Net Royalty Sales (National Advertising Fund); 1% of Net Royalty Sales (Brand Development Fund, up to 1.5% max); Regional Advertising Funds (varies by region, total combined with National Advertising Fund not to exceed 5.5% of Net Royalty Sales) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the MARCO'S PIZZA - Standard 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 MARCO'S PIZZA - Standard to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, MARCO'S PIZZA - Standard franchise owners report average revenue of $946K and median revenue of $896K. This is based on a sample of 778 units. Past performance does not guarantee future results.
MARCO'S PIZZA - Standard has been franchising since 2004. The FDD shows an investment range of $242,142-$633,109, a 5.5% of Net Royalty Sales royalty, and includes an Item 19 earnings disclosure. There are 3 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 $25,000 and the total investment ranges from $242,142 to $633,109 depending on location size and market. A minimum of $9,000 in liquid capital is required. 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 MARCO'S PIZZA - Standard and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with MARCO'S PIZZA - Standard or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com