The Marco's Pizza franchise requires a total investment of $287K – $807K with a 5.5% royalty fee and operates 1,159 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Marco's Pizza.
Critical issues identified from FDD analysis that warrant serious consideration before investing.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $25,000 | $25,000 |
| Real Estate | $6,000 | $18,666 |
| Equipment | $97,725 | $175,000 |
| Technology | $20,000 | $23,000 |
| Technology | $6,700 | $6,900 |
| Buildout | $65,000 | $400,000 |
| Signage | $3,000 | $15,000 |
| Inventory | $7,000 | $11,000 |
| Other | $14,200 | $18,500 |
| Other | $2,500 | $6,000 |
| Legal Accounting | $500 | $3,000 |
| Insurance | $2,366 | $16,500 |
| Training | $1,500 | $8,650 |
| Other | $500 | $5,000 |
| Other | $8,000 | $15,000 |
| Technology | $336 | $336 |
| Technology | $500 | $500 |
| Other | $15,500 | $25,500 |
| Technology | $800 | $2,400 |
| Other | $600 | $1,200 |
| Working Capital | $9,000 | $30,000 |
| Total | $286,727 | $807,152 |
Ongoing fees as disclosed in the FDD.
| Fee Type | Rate | Type | Basis | Frequency |
|---|---|---|---|---|
| Royalty | 5.5% | PCT | Net Royalty Sales | weekly |
| Royalty - Key Management Employee Program | 2.5% | PCT | Net Royalty Sales | weekly |
| Royalty - 2025 Royalty Incentive Program | N/A | PCT | Net Royalty Sales | weekly |
| Brand Launch Program | $10,000 | FIXED | Performance goals not met | one_time |
| Brand Development Fund | 1.0% | PCT | Net Royalty Sales | weekly |
| National Advertising Fund | 4.0% | PCT | Net Royalty Sales | weekly |
| Regional Advertising Fund | $1 | VARIABLE | Net Royalty Sales | weekly |
| Market Advertising Cooperative | N/A | VARIABLE | Co-op member votes | weekly |
| Local Store Marketing | 7.0% | PCT | Net Royalty Sales minus Brand Dev Fund, Geography Based Funds, and Ad Co-op contributions | weekly |
| Training Registration Fee | $225 | FIXED | Per person | one_time |
| Additional Training | $1,100 | FIXED | Per person | one_time |
| Replacement Designated Franchise Operator Training | $5,500 | FIXED | Per person plus translation costs if requested | one_time |
| Multi-Unit Leadership Excellence (MULE) Training Registration Fee | $550 | FIXED | Per person | one_time |
| Missed Training Instruction Make-Up or Retraining Fee | $85 | FIXED | Per hour per Marco's Instructor (billed in 30 min increments) | one_time |
| Additional Assistance | $300 | FIXED | Per day | one_time |
| Performance Deficiencies Service Fee | $500 | FIXED | Per continued failure to comply with operational standards | one_time |
| Financial Reporting Fee | $100 | FIXED | Per violation if financial reports not submitted | monthly |
| Relocation | $10,000 | FIXED | Per Store relocation | one_time |
| Transfer | $10,000 | VARIABLE | Per transfer of franchise interest | one_time |
| Renewal Fee | $6,250 | VARIABLE | $6,250 or 25% of then-current standard Initial Franchise Fee, whichever is greater | one_time |
| Insurance | N/A | VARIABLE | Actual cost if franchisee fails to obtain required coverage | one_time |
| Interest and Additional Expense Fees | 1.5% | PCT | Per month on late payments | monthly |
| Delayed Opening Fee | 5.5% | PCT | 90% of weekly Average System-wide Sales | weekly |
| Liquidated Damages | N/A | VARIABLE | Average Royalty, Brand Dev Fund, and Geography-Based Ad Fund contributions for 39 periods prior to termination | one_time |
| Software Maintenance and Support Fees | $449 | FIXED | Per Accounting Period plus $6 each for cameras over 6 | monthly |
| Web Based Training (Marco's University) | N/A | VARIABLE | Included in Technology Fee | weekly |
| Technology Fee | $112 | FIXED | Per Accounting Period | weekly |
| Costs and Attorneys' Fees | N/A | VARIABLE | Actual costs incurred | one_time |
| Audit Costs | N/A | VARIABLE | All audit costs, accounting and legal costs, plus prime plus interest on underpayment | one_time |
| Indemnification | N/A | VARIABLE | Actual costs incurred | one_time |
| Securities Offering Fee | $2,500 | VARIABLE | $2,500 or actual expenses, whichever is greater | one_time |
| Development Agreement Continuation Fee | 5.5% | PCT | 90% of weekly average system-wide sales | weekly |
| MUO & Inventory Tablet | $529 | VARIABLE | Per tablet including shipping | one_time |
| Additional Email Fee | $120 | FIXED | Per email account per year | annually |
Financial Performance Representations not disclosed by this franchisor
Approximately 40% of franchisors choose not to include Item 19 financial performance data in their FDD. This does not necessarily indicate poor performance -- it simply means the franchisor has elected not to disclose this information.
Model your personal financial scenario by adjusting the assumptions below.
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2022 | 952 | +85 | -16 | 111 | 1018 | 1.7% | +66 |
| 2023 | 1018 | +85 | -21 | 76 | 1071 | 2.1% | +53 |
| 2024 | 1071 | +68 | -6 | 80 | 1114 | 0.6% | +43 |
How Marco's Pizza compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $3K – $630K | No Item 19 | -- | -- |
| McDonald's | 12772 | $1.47M – $2.64M | No Item 19 | 5.0% | -- |
| Dunkin' | 8499 | $527K – $1.83M | $1.43M | -- | 0.8x |
| Domino's Pizza | 7043 | -- | $24K | 5.5% | -- |
| Burger King | 6701 | -- | No Item 19 | -- | -- |
| Wendy's | 5552 | $393K – $2.99M | $2.23M | 4.0% | 0.8x |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $3.77M | $1.27M | 5.0% | 1.5x |
| Papa John's | 3291 | $261K – $853K | No Item 19 | 5.0% | -- |
| Popeyes Louisiana Kitchen | 3177 | $505K – $3.92M | No Item 19 | 5.0% | -- |
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