Cottage Inn Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

45
+
5%
5%
Investment required

?

$167,000 - $785,000
Revenue (AUV)

?

$811,000
Undisclosed
Pro
+
12.5%
+
xx%
-xx%
12.5%
Initial franchise fee

?

$25,000 - $30,000
Royalty fees

?

6.00%
+
6.00%
Operating Profit

?

6.2%

Pro
Franchisees

?

45
+
5%
5%
Investment required

?

$167,000 - $785,000
Franchise fee

?

$25,000 - $30,000
Royalty fees

?

6.00%
+
6.00%
Revenue (AUV)

?

$811,000
Undisclosed
Pro
+
12.5%
+
xx%
-xx%
12.5%
Operating Profit

?

6.2%

Pro

Cottage Inn Pizza: Crafting Gourmet Pizzas Since 1948

Cottage Inn Pizza is a longstanding name in the American pizza scene, first opening its doors in Ann Arbor, Michigan, back in 1948. With deep family roots and a passion for quality, the brand took a major step in 1986 by launching its franchise program. Today, Cottage Inn operates more than 50 locations throughout Michigan and Ohio.

What sets Cottage Inn apart is its wide-ranging menu, which features over 30 gourmet pizza selections alongside hearty pasta dishes, fresh salads, and gluten-free offerings. The franchise is known for its emphasis on premium ingredients and friendly, reliable service—a combination that has made it a local favorite across the Midwest.

With a continued focus on growth, Cottage Inn offers new franchisees robust training and continuous operational support, making it a strong contender for those looking to enter the competitive pizza market.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Cottage Inn offers 3 types of franchises:

Franchise Name Initial Investment Range
Cottage Inn Pizza Express $167,000 to $352,000
Cottage Inn Pizza $216,000 to $500,000
Cottage Inn Pizza & Pub $424,000 to $785,000

We are summarizing below the main costs associated with opening a Cottage Inn Pizza & Pub. For more information on costs required to start a Cottage Inn franchise, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Initial Franchise Fee $30,000
Training Expenses $10,000 to $20,000
Opening Supply of Food Items, Employee Uniforms, and Paper Products $20,000 to $40,000
Equipment $75,000 to $200,000
Leasehold Improvements and Decorating $100,000 to $200,000
Signs $20,000 to $30,000
Grand Opening Advertising and Promotion $10,000
Prepaid Expenses $25,000 to $30,000
Three Months’ Rent $9,000 to $15,000
Beer and Wine License $50,000 to $120,000
Additional Funds – 3 months $75,000 – $90,000
TOTAL ESTIMATED INITIAL INVESTMENT $424,000 to $785,000

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

45

+
5%
5%
No growth
New

$25,000 - $30,000

$167,000

-

$785,000

n.a.

$811,000

Pro

72.1%

Pro

6.2%

Pro

Food & Beverage

Training

Cottage Inn provides a structured and mandatory training program to ensure franchisees are well-equipped to manage their stores effectively. The training is extensive and conducted primarily at a functioning Cottage Inn store, with some sessions held at the company’s offices in Ann Arbor, Michigan.

  1. Initial Training Program: This program spans a minimum of six weeks and must be completed to the franchisor’s satisfaction. It is mandatory for the franchisee, the Managing Owner, and optionally, another designated employee. The curriculum includes both classroom instruction and on-the-job training, tailored to prepare attendees thoroughly for store operations.
  2. Additional Training Programs: Franchisees and their managers must attend any further training sessions scheduled by the franchisor, which may occur at or near the store. Online classes may also be required, with associated costs potentially applicable. These programs aim to reinforce operational standards and update franchisees on new procedures or policies.
  3. Conferences and Evaluations: Attendance at mandatory annual conferences is required for franchisees or store managers. These conferences serve as platforms for continuous learning, networking, and strategic updates. The franchisor may also conduct training evaluations and meetings to assess and support franchisee progress.

Territory Protection

Cottage Inn provides franchisees with a designated Area of Primary Responsibility (APR), but this does not equate to an exclusive territory. While the franchisor generally respects the franchisee’s APR, it retains the right to operate other franchises or company-owned stores, and to distribute through alternative channels within or near the same area.

This means franchisees may face competition from other Cottage Inn outlets, even those owned by the franchisor itself.The franchise agreement emphasizes that franchisees are not guaranteed exclusivity, and they have no rights to additional territories, options, or first refusals unless otherwise stipulated in an Area Development Agreement.

The APR will not be altered unless the franchisee delivers outside of it, but continuation of the territory does not depend on achieving specific sales benchmarks. In essence, while the franchisor offers a defined geographic area for operation, it does not provide strong territorial protections against internal competition.

Number of units

2023
Franchised units

43

44

45

Company-owned units

9

9

9

Total units

52

53

54

Competitors

Paulie Gee's

Investment required
$255,000
-
$734,000
Franchisees
5
+
25%
25%

Mellow Mushroom

Investment required
$1,688,000
-
$4,832,000
Franchisees
161
+
-2%
-2%

LaRosa's Pizzeria

Investment required
$1,431,000
-
$2,595,000
Franchisees
56
+
2%
2%

Singas Famous Pizza

Investment required
$257,000
-
$792,000
Franchisees
24
+
50%
50%

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