5 Things You Need to Know Before You Buy a Pizza Hut Franchise The pizza delivery giant is one of the most expansive franchises in the world. Is it a good investment for you?

By Matthew McCreary

Pizza Hut | Facebook

"Pizza Hut is the most loved pizza brand in the world."

Take a trip to Pizza Hut's franchising site, and you'll find these words in big, bright lettering. It sounds like the usual sort of marketing phrase that doesn't mean anything, but in this case, if we're talking about sheer numbers, it might just be true.

For example, Pizza Hut ranks third among pizza franchises in the 2018 Entrepreneur Franchise 500 list (and 47th overall), trailing just Papa John's and Marco's Pizza. But, at the start of 2017, Pizza Hut had just under 15,000 locations worldwide, while Papa John's had approximately 5,000.

Pizza Hut had 8,760 international franchises. Marco's had 13. That's not an insignificant difference.

There's no question that the Pizza Hut franchise is one of the most popular restaurants across the globe, and that sort of branding and clout can help make your franchise a success.

But, just because Pizza Hut is a great franchise doesn't necessarily mean it's right for you. Here are five things you need to consider before diving in.

Related: The 5 Best Pizza Franchises You Can Start Today

Cost

There are plenty of franchises on the Franchise 500 that you can buy for $25,000 or less. Pizza Hut is not one of them. In fact, you'll pay that just in the initial franchise fee. Then, after construction costs, buying equipment and other startup costs, you'll end up paying $302,000 -- minimum. Depending on your exact location and specifications, that number could balloon to more than $2 million.

By comparison, a Papa John's franchise will cost between $130,120 and $844,420. A Marco's Pizza franchise will run anywhere between $222,830 and $663,830.

Given Papa John's and Marco's respective price tags, you might think the Pizza Hut price is exorbitant, but it's actually right in line with other popular food franchises. For example, a McDonald's will cost between $1 and $2.3 million. A Dunkin' Donuts will run between $229,000 and $1.7 million. Sonic's price range is $1.1 and $2.4 million.

But, just because it's on par with other big-name brands, doesn't mean it's affordable for everyone. Pizza Hut requires a franchisee has a net worth of at least $700,000. That's not exactly chump change.

Related: 5 Affordable Franchises You Can Start for Less Than $10,000

Training

Pizza Hut's training regiment is a little different than most other restaurants and franchises. Most places require a combination of classroom and on-the-job training. For example, Marco's requires 266 hours of on-the-job training and 60.4 hours of classroom training.

Pizza Hut skips the classroom training altogether and extends the on-the-job training. Expect eight to 12 weeks (or 320 to 480 hours) of training at your location when you start a Pizza Hut franchise.

Related: 5 Low-Cost Franchises You Can Start for as Little as $4,000

Trend

At the start of 2008, there were 11,734 Pizza Hut locations across the world -- 5,080 franchises in the U.S., 4,016 franchises abroad and 2,638 restaurants owned by the company.

By the start of 2017, there were 14,997 Pizza Huts -- 5,885 franchises in the U.S., 8,760 abroad and 352 restaurants owned by the company.

So, over nine years the company has seen 805 more U.S. franchises and 4,744 more international franchises, but 2,286 fewer company-owned restaurants.

That number represents 27.8 percent growth in units in nine years.

Related: 5 Franchises You Can Buy for Less Than $18,000

Location

Despite the large number of locations, Pizza Hut is still looking for investors both across the globe and the U.S. The Pizza Hut franchising website showcases opportunities in northeastern states like Pennsylvania and New York, but you'll probably need to request more information from Pizza Hut to find specific opportunities.

However, just as important as the geographic location is the physical location -- or what type of store you choose to franchise. Do you want to be part of a mall or a standalone restaurant? Pizza Hut says you can find its restaurants in airports, shopping malls, college campuses, casinos, resorts and more.

Related: Just How Much Does It Cost to Own a Fast-Food Franchise?

Support

What exactly are you getting with your investment, other than a pizza restaurant? After all, you could probably start your own pizza delivery place for $2 million. Pizza Hut is similar to many franchises in that it offers two types of support.

The first is ongoing business support, which includes a newsletter and conventions you can attend with other franchisees to learn tips and tricks of the trade, as well as a grand opening, a toll-free line and online support.

The second type is marketing support. Here, the international brand can help you with more than just national or regional media. The company will also help with a loyalty program, an app, co-op advertising and ad templates you can use to market your business.

Related: The 10 Best Franchises to Open in 2018

Wavy Line
Matthew McCreary

Entrepreneur Staff

Associate Editor, Contributed Content

Matthew McCreary is the associate editor for contributed content at Entrepreneur.com.

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
Lock
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
Lock
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

My Startup Scored a Multimillion-Dollar Contract With a Fortune 100 Client in Just 3 Years. Here's What We Learned.

There's no perfect litmus test to gauge if you're ready to go after big business or not — but if you don't take the risk, you'll never realize the reward.

Marketing

5 Questions to Ask a PR Pro Before Hiring Them

You probably haven't considered asking these questions, but they're a great way to find the right PR firm for your business.

Marketing

This Location-Based Marketing Technique Is the Key to Boosting Retail Sales

Let's take an in-depth look at geofencing marketing and how it's helping retail locations drive foot traffic and boost sales.

Growing a Business

The Inevitable Challenges You'll Face as Your Business Grows — and How to Handle Them

There's going to be some discomfort as your business expands, but it doesn't have to stop you from achieving massive success.