- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$393K - $1.7M
- Unit data is unavailable
Start a Little Caesars Franchise | Costs and Requirements
If you're ready to become your own boss, franchising can be a great avenue. According to the International Franchise Association, franchise opportunities are booming and will continue to do so. In 2022, around 8.45 million people were franchise employees, and production output totaled $826.6 billion.
Potential franchise owners like you can help those numbers continue to grow. But how do you know if the franchise industry is right for you? And how do you know if Little Caesars is the right business to join? Keep reading to discover all the need-to-know information.
Why Should You Become a Franchise Owner?
Owning a franchise means being your own boss without building something from the ground up. Although it will take hard work and determination, there is more security partnering with a franchise company. As a franchisee, you'll have a roadmap to follow, systems and resources to help you, and immediate brand recognition.
One of the most challenging things about starting a new business is the work and money it takes to get a new brand name out there and build a customer base.
Becoming a franchise owner comes with increased visibility and customer loyalty. Little Caesars Pizza, its headquarters in Detroit, MI, is an internationally known pizza restaurant, so customers will already be familiar with the Hot-N-Ready, Crazy Bread, and famous orange signage.
Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.
Pros of Being a Franchise Owner
Starting a new business can be a scary challenge, but entering into a franchise agreement certainly has some added perks.
Some of these benefits include:
- No experience necessary.
- Training and support is provided.
- Tried and true systems are already in place.
- Existing customer loyalty and brand awareness.
- National and local marketing programs.
Cons of Being a Franchise Owner
Making intelligent business decisions is a crucial factor in maintaining success and growth. To ensure you make the right choices, it’s important to consider the downsides of every situation.
One of the most significant drawbacks of owning a franchise is restriction. You are not starting from scratch; instead, you’ll have to follow a pre-established system. You will encounter control restrictions with things like hours of operation, advertising and marketing, aesthetics, and products and services.
Additionally, as with any other business venture, there will be initial investment costs and ongoing fees — but as a new franchisee, many of those costs go toward aspects of starting a business that make opening a franchise easier than starting a business from scratch, such as real estate selection, training, marketing, advertising, point of sale (POS) systems and other backend systems you would have to research and purchase on your own.
Additionally, if you choose to franchise a Little Caesars, you will also have to report financial information to the corporation. Little Caesars will need to vet your finances at the onset and throughout your partnership. However, this financial disclosure is required so that Little Caesars can help you navigate and avoid financial pitfalls and thrive, wherever you open a location.
How Little Caesars Rose to Fame
You might think that a globally-owned chain would have started with that goal in mind — but Little Caesars started all because of a blind date. In 1954 Mike Ilitch and Marian Bayoff (now Marian Ilitch) went on a blind date, married months later, and began their love affair with pizza just five years after that.
The first store opened in Garden City, Michigan, and in 1962, the first franchise was opened in Warren, Michigan. The decision to franchise their first store so quickly after establishing the original led to Little Caesars' journey as the fastest-growing pizza chain in the U.S. By 1969, Little Caesars had 50 storefronts.
Over the next few decades, Little Caesars restaurants have spread into international markets like Europe and Canada, contributed positively to their local communities and created entertaining marketing campaigns. It is now the third largest pizza chain in the world, only surpassed by Pizza Hut and Domino's.
Little Caesars Franchising FAQs
How Much Does It Cost to Own a Little Caesars Franchise Unit?
Finances can be a considerable barrier to entry when starting a business, so you should ensure you know the financial investment requirements before starting a new business venture.
You'll need to be prepared for Little Caesars' franchise costs, including:
- Estimated total investment: $379,000+
- Net worth requirement: $350,000
- Liquid asset requirement: $150,000
Does Little Caesars Offer Financing Options?
While Little Caesars does not provide financing directly, they do have several lending partners for you to choose from. You are not obligated to finance your purchase through any of the Little Caesars franchise lending partners but it is an option to you.
Where Can You Open a Little Caesars Franchise?
Little Caesars is an international establishment, which means there are plenty of local options. While you can open a Little Caesars anywhere in the U.S., most current locations are situated in densely populated areas on the East Coast, West Coast, Midwest, and South.
Additionally, you should consider the surrounding area before deciding on a location. For instance, opening near a highway exit, or in a highly trafficked strip-mall or suburban shopping center, could be wise for building up a regular clientele.
What Kind of Restaurant Model Can You Open?
As a pizza franchise owner, you will be running your business under a corporation, so you will need to be ready to follow certain guidelines regarding your Little Caesars location, building requirements, branding, and other aspects.
When it comes to opening a traditional location, Little Caesars requires the following:
- 1,400-1,600 square feet
- Inline or free standing
- Adequate parking
- Drive-thru window where possible
In some cases, you can open up a nontraditional location, which will be somewhere between 470 to 1,399 square feet.
These options are perfect for places like:
- Convenience stores
- Military bases
What Kind of Business Model Can You Run?
Little Caesars brings a customer-first approach, which is why they offer several business models for customers to have the safest and most convenient experience.
Depending on what kind of Little Caesars franchise you decide to open, your business model can offer the following:
- Online ordering with no-contact delivery
- Online ordering with in-person carryout
- Hot-N-Ready pizza
- Drive-thru and pick-up windows at some stores
Does Little Caesars Offer Any Franchise Ownership Incentives?
Little Caesars offers a few significant incentives for military veterans and first responders.
Little Caesars' Veterans Program has existed for almost 20 years and was started to offer more business opportunities to veterans like the Little Caesars founder. These incentives are available for honorably discharged vets and members of Gold Star families, who are family members of fallen soldiers.
Financial benefits for veterans and first responders include:
- Franchise fee discount
- Equipment and supply discount
- Financing assistance
- Advertising support
- Public relations support
Community Outreach With Little Caesars
If community outreach is a priority for you and something you want to incorporate into your time as a franchise business owner, then Little Caesars is an excellent franchise to partner with. The company prides itself on helping others and has done so for decades.
Love Kitchen began as a campaign called "Pizza for People" aimed to serve those in need. Since 1985, Little Caesars, its franchise owners, and volunteers have made this mission possible.
Love Kitchen focuses on serving:
- Food insecure families
- People without housing
- Disaster survivors
- First responders
Since its inception, 50,000 Little Caesars franchise owners have participated in this mission to spread love and provide for those in need. You could be the next Little Caesars franchise owner to help that mission!
Little Caesars AAA Hockey Club
Since 1968, the founder's family has sponsored an amateur hockey team, which has grown into Little Caesars Amateur Hockey League. While this might sound like a niche form of community outreach, the league has created opportunities for youth to learn the sport, stay active, build relationships, develop character, and even make it to the NHL. In fact, many Little Caesars Amateur Hockey League alumni have gone on to the NHL, such as Jason Robertson of the Dallas Stars and Tyler Motte of the Chicago Blackhawks.
Million Pizza Giveaway
This is another Little Caesars initiative that could only be possible with the help of volunteers and franchisees. Million Pizza Giveaway is meant to show healthcare workers, first responders, and soldiers appreciate how much their service means to their community.
Little Caesars Values and Culture
When choosing a franchise, you must consider your values and ensure that they match your prospective franchise's. Little Caesars prides itself on having small-town values and a people-centered culture.
- Serve Others: Be generous and selfless when serving customers
- Own Your Work: Be accountable and set your standards high
- Invent Something: Be curious, open-minded, and innovative
- Never Give Up: Be fearless, determined, and keep your goals ahead
- Be an All-Star: Be a mentor, make an impact, and have fun doing it
- Treat Each Other as Family: Work together, honor each other, respect each other
- Be Resourceful: Remain frugal with resources to continue affordability for customers
- Be Humble: Work with quiet confidence and embrace competition
- Be Protective: Safeguard the brand's reputation, proprietary information, and trade secrets
- Have Fun: Create a fun "work hard, play hard" teamwork environment
Opening Your Own FranchiseIf all of the above information sounds like something that aligns with your vision, then it's time to start the process.
Little Caesars has created four simple steps for potential franchisees to follow.
- Application and Discovery Day
- Eight-Week In-Store Operations Training Program
- Site Construction
- The Grand Opening!
Recipe for Success
If owning a Little Caesars sounds like the right business opportunity for you, then it's time to get started! If you've got the background and financial information you need to get started, and you've seen the upside and the downside of franchising, take some time to weigh your options, see if you can picture yourself with your own Little Caesars, and get started.
Looking for more content to learn all about franchising? Explore the Entrepreneur Franchise Center here.
About Little Caesars
|Parent Company||Little Caesars Enterprises Inc.|
|Leadership||Marian Ilitch, Founder|
2211 Woodward Ave.
Detroit, MI 48201-3400
|Franchising Since||1962 (61 years)|
|# of employees at HQ||300|
This company is offering new franchisees throughout the US.
This company is offering new franchisees worldwide.
Information for Franchisees
Here's what you need to know if you're interested in opening a Little Caesars 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.
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.
|$393,000 - $1,718,700|
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.
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
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
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?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|Third Party Financing||Little Caesars has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll|
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||1-2 weeks|
|Classroom Training||1 week|
Meetings & Conventions
Security & Safety Procedures
Additional details about running this franchise.
|Is absentee ownership allowed?||No|
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.
|# of employees required to run||10-50|
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 ownership opportunities like Little Caesars? Request a free consultation with a Franchise Advisor now.
Are you eager to see what else is out there? Browse franchises that are similar to Little Caesars.
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