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- 2022 Franchise 500 Rank
#60 Ranked #59 last year
- Initial investment
$367K - $2.1M
- Units as of 2021
16,588 7.6% over 3 years
Here’s what you need to know if you’re interested in opening a Pizza Hut franchise.
In 1958, two brothers asked their mom for $600. With the money, they opened up their own pizza restaurant. With space for only eight letters on the sign, they called their restaurant Pizza Hut. Now, the pizza chain commands a considerable market segment in the pizza industry, with thousands of locations in the U.S. and over 10,000 franchises internationally.
Pizza Hut restaurants focus on pizza, pasta, breadsticks, chicken wings, and other Italian-inspired food products. Generally, most Pizza Hut locations offer a variety of lunch buffets to patrons, as well. Pizza Hut strives to be a community-oriented place where families can feel comfortable having a good time together.
Why You May Want to Start a Pizza Hut Franchise
If you have restaurant or retail management experience, you probably have the skills Pizza Hut looks for in a franchisee. The franchisor may be a good option for those looking to open multiple restaurants, as well.
Pizza Hut requires that a franchisee commits to two locations, with the ultimate goal of opening five. These locations can typically be express locations, so you are not limited to only opening free-standing restaurants. Pizza Hut likely requires franchisees to be entirely hands-on, as well, which might make it even more appealing to those who love to get involved in the creation of a product.
Overall, the ideal candidate is probably one who wants to run a restaurant, but doesn't want to go through the trouble of establishing a brand and reputation.
What Might Make a Pizza Hut Franchise a Good Choice?
Compared to other small franchises struggling to break into the pizza market, Pizza Hut enjoys a large share of America's market already. Pizza is typically an everyday sort of meal, with many Americans eating it at least once a month.
Pizza Hut has ranked in Entrepreneur’s Franchise 500 and Top Global Franchises many times over the course of its lifetime. Those rankings are based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
How to Open a Pizza Hut Franchise
To be part of the Pizza Hut team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should be prepared for ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Speak to existing franchisees and ask questions directed to the Pizza Hut team. If your net worth and available liquid capital match the brand’s requirements, you may qualify to open a Pizza Hut franchise, and you can get started with an initial investment. Do your due diligence and research your market area. Though competition can be healthy, too much may not allow for the most possible growth.
If you qualify and once you pay your fees, you can begin your operation as a Pizza Hut franchise owner. Any way you slice it, Pizza Hut may be one of the most well-known pizza franchises around! Hopefully, your location will have families and hungry individuals coming in from miles away.
About Pizza Hut
- Franchising Since
- 1959 (63 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees worldwide.
- # of Units
- 16,588 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Pizza Hut franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $367,000 - $2,063,500
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 20 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 320-480 hours
- Classroom Training
- 43-55 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesNational MediaSocial MediaEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Pizza Hut? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Pizza Hut landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Pizza Hut ranked on other franchise lists? Find out below.
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