How Much Does A Pizza Hut Franchise Cost?
Nowadays, many people are dreaming about the boss of their own business. There are many ways to become a business owner. But the most reliable way is to own a franchise. Pizza Hut, one of the largest franchisee companies in the fast-food market, is the most preferred commercial enterprise in order to its popularity among consumers. In this article, we will talk about pizza hut franchise costs in general. Also we will mention about Pizza Hut franchise agreement, pizza hut franchise profit and pizza hut franchise profit margin and lastly pizza hut franchise contact number for who would like to search.
Pizza Hut Franchise Agreement
Pizza hut was founded in 1958 and has over $ 37 billion in assets. Pizza hut has become one of the fastest growing companies in the food market. Pizza hut franchise agreement is a 236 page document. Document content is about; dealership agreement, business experience, litigation, initial and other fees, financing, territory and trademarks, patent, copyrights and proprietary information, obligation and restrictions, and full contracts that you are in charge.
When you agree with Pizza Hut franchise agreement and you decide to have a franchise of Pizza Hut,
- You need to pay franchise fee $25.000
- Also royalty fee is 6 % of net income
- You need to pay also advertisement fund which is 4.25 %
- Total investment cost between $ 297.000 to $2.000.000
- You should have net requirement $ 700.000
- Also you should in cash liquidity requirement $ 350.000
These are the requirements of Pizza Hut franchise agreement and total initial cost. A lot of people come up with the question of whether there are other charges. While overall monetary costs are limited to so much, there are other requirements for pizza hut franchisees.
- The person who will receive the Pizza Hut franchise is required to have at least 3 years of restaurant experience.
- By the way, those who do not have experience in the food industry if they find a partner with a solid background may have pizza hut franchise.
- Cost of the land to be rented or purchased responsibility, belongs to the franchisee.
- The recruitment, training and development of the workers is entirely owned by the licensee.
Pizza Hut Franchise Cost/Profit and Profit Margin
You have completed all the requirements. Congratulations you now own a Pizza Hut Franchise.
So, what are the operating costs? How Pizza Hut franchise much profit can you make from this business? What is the Pizza Hut franchise profit margin?
For example, let’s say that you make a weekly turnover of $ 45,000 on a busy street.
to produce pizza, you must bear the cost of a product. Which is % 30. The pay for employees is usually between $ 10 and $15 per hour. Which means that you pay approximately 30% of your turnover to workers. Uniform, washing, cleaning, and other expenses (including some government fee and social security fees) will cost you about $ 13.500 a week. If we calculate,
- The product cost is 30% of $ 45,000 will be $ 13.500.
- Labor cost is % 30 of $ 45.000 will be $ 13.500.
- Other Operating Cost will be $ 13.500.
- Your net weekly income will be $ 4.500
- Also you need to pay % 6 fee from your net income which is $ 270
- Your total cost will be $ 40.770
- $ 4.230 a week remains in your pocket. That means, more than $ 200.000 annual income.
Pizza Hut Franchise Contact Number
The following mail address can be used for all information including franchise information. https://franchise.pizzahut.com. Because pizza hut is a worldwide brand, the phone numbers information you need to reach to get your franchise is different. You may have a request information and you need to use following mail address, https://franchise.pizzahut.com/request-information/.