Little Caesars Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

3705
+
3%
3%
Investment required

?

$447,000 - $1,817,000
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$20,000
Royalty fees

?

6.00%
+
7.00%
Operating Profit

?

n.a.

Pro
Franchisees

?

3705
+
3%
3%
Investment required

?

$447,000 - $1,817,000
Franchise fee

?

$20,000
Royalty fees

?

6.00%
+
7.00%
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Little Caesars: Revolutionizing Convenience and Value in the Pizza Industry

Little Caesars is a well-known brand in the pizza industry, offering a diverse menu that includes pizzas, sides, and other Italian-American fast food items. Established in 1959, it has grown to become the third-largest pizza chain in the United States, showcasing its strong presence and popularity in the fast-food sector. Based in Detroit, Michigan, Little Caesars has built a reputation for delivering affordable, high-quality pizzas to customers worldwide.

One of the key factors that differentiate Little Caesars from its competitors is its emphasis on convenience and value. The brand is famous for its "Hot-N-Ready" pizzas, which are available for immediate pickup without the need for pre-ordering, providing quick and efficient service for busy customers. This unique approach has helped Little Caesars secure a significant position in the competitive fast-food 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.

Type of Expenditure Amount (Low) Amount (High)
Initial Franchise Fee $20,000 $20,000
Rent $1,500 $7,000
Leasehold Improvements $50,000 $1,000,000
Supplies and Equipment from Blue Line $250,500 $369,500
Other Fixtures, Equipment, and Signage $15,000 $158,000
Grand Opening Advertising $15,000 $15,000
Training Expenses $12,000 $16,500
Start-up Inventory and Supplies $63,000 $154,000
Insurance $500 $1,200
Utility Expenses $1,000 $9,000
Licenses and Permits $1,000 $20,000
Additional Funds – 3 months $17,000 $47,000
Total $446,500 $1,817,200

Franchise Disclosure Document

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Competitors

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

3705

+
3%
3%
No growth
New

$20,000

$447,000

-

$1,817,000

n.a.

$0

Pro

n.a.

Pro

n.a.

Pro

Food & Beverage

Training 

Little Caesars ensures that its franchisees are well-prepared to operate their businesses efficiently through a comprehensive training program. This program is meticulously designed to cover a broad range of operational and managerial aspects crucial for the successful running of a franchise. Franchisees receive detailed instructions and hands-on experience in various areas, ensuring they have the knowledge and skills necessary to thrive in the competitive fast-food industry.

In addition to classroom-based training, Little Caesars provides access to in-store training resources. These practical learning opportunities allow franchisees to gain firsthand experience and a deeper understanding of the daily operations within a real store environment. This combination of theoretical and practical training ensures that franchisees are well-equipped to manage their franchises effectively from day one.

The training program covers essential operational procedures, including managing daily and weekly paperwork, overseeing cash management, controlling inventory, making financial projections, ordering food supplies, and maintaining cleanliness standards. By mastering these critical areas, franchisees can ensure smooth operations, maintain high standards of service, and achieve long-term success in their business endeavors.

Territory Protection

Protected Territory for Traditional Stores: Franchisees who sign an agreement for a traditional store are granted a protected territory. This means that no other traditional Little Caesars store will be established within this designated area. The exact size of this territory is influenced by various factors, such as population density and the proximity of other Little Caesars outlets. This protection ensures that franchisees can operate without direct competition from other traditional Little Caesars stores within their designated area, fostering a stable and exclusive market for their business.

Non-Traditional Stores: On the other hand, those who opt for a non-traditional store will not benefit from a protected territory. These non-traditional outlets can be situated in diverse locations, including but not limited to airports, stadiums, and other venues. The flexibility of non-traditional store locations allows franchisees to tap into unique markets and customer bases, although it comes without the assurance of territorial exclusivity.

Addressing Encroachment: Little Caesars has provisions in place to address potential encroachment issues. If a franchisee experiences a drop of more than 10% in gross sales due to the opening of another Little Caesars store, they might be eligible for compensation. This policy helps to mitigate the financial impact of encroachment, ensuring that franchisees can maintain their business performance even if new stores are introduced nearby.

Online Sales Dynamics: The franchisor and its affiliates can sell Little Caesars products online, with deliveries potentially being made within a franchisee's protected territory. In such cases, the franchisee will receive a percentage of sales from deliveries made within their territory. This arrangement ensures that franchisees benefit from online sales, aligning with the growing trend of digital ordering and delivery in the fast-food industry.

Number of units

2025
Franchised units

3599

3641

3705

Company-owned units

574

575

580

Total units

4173

4216

4285

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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