Little Caesars Franchise Cost Overview

Ever wondered exactly how much Little Caesars franchise cost? If so, then you’re going to love this post. We are going to tell you everything you need to know about this company’s franchise.

You are also going to know about who owns Little Caesars, how to get a Little Caesars franchise, Little Caesars franchise fees, etc.

So if you want to open a Little Caesars franchise this year, you will definitely love this guide.

Let’s dive right in.

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Is Little Caesars a Franchise?

YES!

Little Caesars is currently the third-largest carryout-only pizza chain in the United States and one of the most renowned franchises in the world today.

As a single store back then in metro Detroit in 1959 with Michael Ilitch Sr. and his wife Marian Ilitch as the founders.

Little Caesars opened its first franchise in 1962, with a total of 50 restaurants in the United States.

As of today, the franchise is present in Costa Rica, Canada, the Dominican Republic, Honduras, Panama, Nicaragua, Mexico, Peru, El Salvador, the Philippines, India, Jamaica, Singapore, Jordan, Bahrain, Turkey, Egypt, Australia, Barbados, Chile, Guatemala, Trinidad and Tobago, Bahamas and Saudi Arabia.

Little Caesars is currently owned by the Ilitch Holdings with David Scrivano as the President and CEO, and Ed Gleich as the CIO.

The franchise basically sells chicken wings, crazy bread, and pizzas.

How Much Does a Little Caesars Franchise Cost?

Little Caesars Franchise Cost

Little Caesars estimates that the start-up costs to own a franchise with them is between $193,050 to $619,500.

An aspiring franchisee also needs to have a net worth of $150,000, and at least $50,000 in cash with the ability to obtain financing to cover the remaining costs.

If you have plans of opening a Little Caesars franchise, you may want to consider these major fees and costs.

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Little Caesars Initial Franchise Fee ($20,000)

The standard initial Little Caesars franchise fee is $20,000; however, the company tends to reduce this fee for already existing franchisees in certain circumstances.

For example:

If you are trying to open your first Little Caesars restaurant, you will pay an initial franchise fee of $20,000. Still, if you are an already existing franchisee trying to purchase an additional franchise under the same franchise number, you may be liable for a $5000 discount – leaving you with a $15,000 initial franchise fee.

Also, if you are an already existing franchisee signing a new franchise agreement when the original agreement has expired, you will be liable for a $15,000 initial Little Caesars franchise fee.

While for new franchisees looking to sign a new franchise agreement with a higher royalty rate than in the original agreement, with ownership still intact from the outset of the original agreement, will be liable for a $10,000 initial franchise fee.

It’s also important to note that this initial franchise fee is non-refundable. For new franchisees, there’s an option to pay a non-refundable $5000 initial franchise fee within 30 days after the company has approved your franchise.

The remainder of the fee can be paid when you sign the Little Caesars franchise agreement or when the company approves a site for your proposed restaurant.

For the United States military veterans, this initial franchise fee is reduced by $5,000 too.

Little Caesars will also give you a $5000 credit toward your initial purchases of equipment needed for your first restaurant from Blue Line.

But for service-disabled veterans, you will be given a Blue Line credit of $10,000.

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Franchise Pre-Opening Purchases from Blue Line ($63,000 – $154,000)

For franchisees looking to open their new Little Caesars restaurant, in addition to the initial franchise fee, you are also required to purchase goods from Blue Line.

You should note that the payments on these items are non-refundable.

Little Caesars Vision System Annual Support Fee ($1500/year)

This fee is to be paid annually in January.

Note that this fee is not mandatory at the moment, but there’s no telling that the company won’t, at some point, decide to make it mandatory.

The fee costs $1500 yearly per restaurant that the Caesar Vision system has been installed.

Little Caesars Training Fee ($250)

This does not cost more than $250 per attendee for an initial Little Caesars franchisee training.

Territory Reservation Fee ($5000)

If you decide to sign a Territory Reservation Agreement with the company, you will be required to pay a Territory Reservation fee of $5000 per restaurant.

Little Caesars may choose to offer you a lesser amount, though, it all depends on them.

Royalty Fee ($100/week)

You choose to pay more than 6% of your gross sales weekly, or a $100 for each week as the royalty fee.

By gross sales, they mean:

The total revenue from the sale of products and services and all other income received by your restaurant. This includes revenues generated from selling products and services off-premises to customers, whether cash or credit.

Gross sales do not include refunds from customers, though, and a certain type of credits, sales taxes that are added to the selling price, and certain permitted discounts.

Little Caesars Franchise Relocation Fee ($2500)

Take note:

With Little Caesars, you can only choose to relocate your restaurant if they permit you to; and the new location must be within a one-mile radius of your previous location, with the new restaurant opening within 6 months of your previous location’s closure.

This relocation fee though, is refundable only if the company does not approve your request.

Little Caesar’s franchise cost for relocation is $2500, and the fee is to be paid after submission of your relocation request.

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Little Caesars Franchise Cost for Renewal ($5000)

This fee is to be paid at the time of signing your Franchise Agreement and Renewal Addendum.

Liquidated Damages Fee for Failure to Comply with Post-Termination Obligations ($250/day)

This fee will be due for payment once incurred.

This fee arises when you fail to comply with the obligation to renew your Little Caesar franchise agreement on expiration or termination.

The company may withdraw up to $10,000 from your bank account on expiration or termination of your franchise agreement to cover potential liquidated damages.

This certain portion of the $10,000 will be refunded upon completion of the de-identification of the restaurant, that’s if there is any left.

And if the $10,000 withdrawn from you isn’t enough to satisfy your obligations, the company will invoice you for the remaining balance.

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