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- 2023 Franchise 500 Rank
#423 Ranked #470 last year
- Initial investment
$274K - $542K
- Units as of 2022
104 1.0% over 3 years
Pizza Factory is a family-owned and operated chain of restaurants. The company strives to provide delicious pizza, pasta, and calzones to customers in the western United States. Danny and Carol Wheeler opened the first Pizza Factory under the name Danny's Red Devil Pizza in 1979 near Yosemite National Park. They began to franchise locations in 1985.
Today, the Pizza Factory franchise has around 100 locations spanning states on the West Coast. For over 30 years, the company has built a reputation for quality meals and solid customer service. Pizza Factory has been ranked in Entrepreneur’s Franchise 500 for more than 30 years consecutively. That ranking is 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.
Why You May Want to Start a Pizza Factory Franchise
The Pizza Factory franchisees are empowered to become hometown pizzerias in their neighborhoods through store customization and marketing. The franchisor adds just the right touch of local to each of the franchised stores with the backing of a recognized brand name. This is a big reason why many of their franchisees are thriving in smaller communities.
Franchisees can be inclusive and build a strong community presence. Franchisees can choose to support local sports teams, hold fundraising nights, or donate pizzas to show their support of their local community. Franchisees have the choice to either build a dine-in restaurant or open an express store, truly catering to the needs of the local community.
What Might Make a Pizza Factory Franchise a Good Choice?
The ability to thrive in small markets has several benefits. There is a potential for reduced competition in smaller communities, less real estate costs, and a more significant market share. With lower franchise startup costs, you would be off to a good start in the pizza business.
The Pizza Factory franchisees enjoy exclusive pricing that the company has negotiated with vendors nationally. This is why a Pizza Factory store is well suited to thrive just about anywhere in the country. A pizza restaurant can be a lucrative business if well managed since there is a considerable demand for pizza. The average American eats four slices of pizza per month.
To start this franchise, the company has a franchise fee and other initial investment expenses that all franchisees must meet. Applicants are required to have working capital and a minimum net worth. Some veterans are also eligible for a discount when first investing in a Pizza Factory location.
How Do You Start a Pizza Factory Franchise?
If you pass preliminary screening to be a franchisee, you may attend a discovery day at headquarters. At the discovery day, you may meet the executive team of Pizza Factory. Here you will also have the opportunity to speak to current Pizza Factory franchisees to hear about all the ins and outs of operating a location.
Ideal candidates do not need to have experience in the restaurant business, but should love food, their community, and business.
About Pizza Factory
- Franchising Since
- 1985 (38 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees in the following US states: Arizona, California, Colorado, Georgia, Idaho, Montana, New Mexico, Nevada, Oregon, Texas, Utah, Wyoming
- # of Units
- 104 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Pizza Factory 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
- $15,000 - $20,000
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
- $274,000 - $542,000
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
- $250,000 - $500,000
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
- $90,000 - $150,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 25% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with 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
- 10 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?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- In-House Financing
- Pizza Factory offers in-house financing to cover the following: payroll
- Third Party Financing
- Pizza Factory has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable
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
- 202 hours
- Classroom Training
- 23 hours
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail 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.
- # of employees required to run
- 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 Pizza Factory? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Pizza Factory landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Pizza Factory ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Pizza Factory.
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