Tell Me More: Pizza franchise

Many entrepreneurs looking to own an established business can get their slice of the $30 billion pizza franchise industry. You don't need experience to own a franchise business but you do need a considerable reserve of cash and general business knowledge. You also have to prove to the head of the company that you can handle the day-to-day responsibility of operating a franchise while upholding the company image.

With so many different options for a pizza franchise on the market, it's difficult to decide which one to pursue. One thing to look for is how unique the franchise in terms of marketing and menu options. You may want to purchase a franchise that sells more than the standard fare of pizza pies, calzones, and submarine sandwiches so your business stands out. Look for characteristics that make a franchise different such as unique menu items, a company mascot that grabs children's imagination, and frequent company promotions that the public exclusively identifies with your franchise.

Before purchasing a pizza franchise, you may be tempted to find territories that don't already have a store in your area. After all, why concern yourself with direct competition from day one? However, it sometimes works to your advantage to buy a franchise that has an existing presence in your area. You end up benefiting from shared advertising costs and increased marketing exposure. But if you insist on being the first in your region, a pizza franchisor can set you up with protected territory where you won't have direct competition in a given radius. Just keep in mind that this privilege will cost you more.

And what about the costs of running a pizza franchise? If owning a franchise is in your future, you're going to need about $60,000 to $100,000 and more in initial capital. These funds will cover your initial costs like franchise fees to the parent company, supplies and equipment, and signage. You have to consider the real estate and construction costs for the land you will build your franchise on. There's also the matter of the restaurant décor and furniture as well as kitchen equipment, food supplies, and consumables. You're also responsible for on-going monthly costs such as royalty and advertising fees to the parent company, local advertising efforts, and property leases.