🍟 2/16/2023 – Two IMPRESSIVE Pizza Franchises
FRANCHISES OF THE WEEK
1) Donatos
Fast Facts
Background
- Founded in 1963, franchising since 1991
- Based in Ohio; 169+ locations open at the start of 2022
- Pizza, subs, and salads
Fees + Investment
- Royalty: 4%
- Brand Fund: 0.75%
- Franchise Fee: $30,000
- Initial Investment: $391,500 – $750,747
Financial Performance
- The first table below is based on 152 locations in 2021, while the second table that contains EBITDA is based on 20 locations
The Wolf’s Take 🍟
Average revenue of $1,290,633 is very high for a pizza franchise relative to the investment. Domino’s is a bit cheaper from an investment standpoint but is right around $1.2M.
To add to it, 20 franchisees reported an average EBITDA of $169,714. Again, this is very healthy cash flow!
A while back I spoke to franchisee of this brand who owned 5 locations (link in the resources section), and I was very impressed with the professionalism of the organization.
If you’re considering a pizza franchise, check out Donatos!
Resources
2) Pizza Guys
Fast Facts
Background
- Founded in 1986, franchising since 1994
- Based in California; 74+ locations open at the start of 2022
- Whole pizzas, wings, pastas, garlic bread and much more!
Fees + Investment
- Royalty: 5%
- Brand Fund: $0
- Franchise Fee: $25,000
- Initial Investment: $73,300 – $267,500
Financial Performance
The Wolf’s Take 🍟
Pizza Guys is offering another high average unit volume pizza option! There were no EBITDA statistics shared, but the investment : revenue ratio looks to have potential.
The big thing to note here is that they only have locations in California, Nevada, and Oregon thus far. So while it’s very much a regional brand at the moment, there could definitely be an opportunity to expand this brand and use their playbook!
Resources
Disclaimer: This Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All Content in this email is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the email constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content in this email before making any decisions based on such information or other Content.