1000 Degrees Franchise in 2025: Costs, Fee & FDD
Explore the fast-casual pizza scene with 1000 Degrees, offering customizable, high-quality pizzas baked in under two minutes. Learn about the costs, fees, and potential for franchise growth.
Table of Contents:
1000 Degrees was founded in 2014 by Brian Petruzzi, who aimed to bring the authenticity of Neapolitan and Roman-style pizzas to the fast-casual dining scene. The franchise sets itself apart with its blazing-fast baking process, cooking pizzas at 1,000 degrees in under two minutes. This approach ensures a perfect blend of crispiness and flavor, appealing to modern diners who value speed without sacrificing quality. With an emphasis on customization and premium ingredients, 1000 Degrees has carved out a niche in the competitive pizza industry by offering a gourmet experience at an affordable price.
The star of 1000 Degrees is its customizable pizza. Customers can choose from over 50 ingredients, including cheeses, sauces, meats, and fresh vegetables, to create their perfect pie. The menu also features Roman-style pizzas, wings, salads, and desserts, catering to diverse tastes. The franchise’s core customers are families, pizza enthusiasts, and on-the-go individuals who value fast service and high-quality food. Whether dining in or taking out, patrons can expect fresh ingredients and a unique culinary experience.
Currently, 1000 Degrees operates 21 locations across 10 states, including Michigan, Texas, and Florida. In recent years, the brand has focused on growth in Texas, where three new locations opened, with more on the horizon. Month-over-month revenue growth and a return to pre-pandemic sales levels highlight the franchise’s resilience and potential for scalability. Plans for expansion suggest that 1000 Degrees is building momentum in the fast-casual pizza sector.
1000 Degrees stands out with its strong franchisee support system. The brand offers comprehensive training programs covering operations, customer service, and marketing strategies. Franchisees receive tools and guidance to streamline processes, optimize revenue, and maintain high customer satisfaction. With its focus on continuous improvement, 1000 Degrees has developed a business model that supports franchisees’ success while preserving the quality and consistency of its product. For investors, the franchise combines a compelling product with robust support, making it an attractive opportunity.
1000 Degrees Franchise Insights
- 1000 Degrees pizzas are cooked in just under two minutes at a scorching 1,000 degrees, ensuring a quick turnaround without compromising on taste or quality.
- With over 50 ingredients to choose from, the franchise offers unparalleled customization, appealing to pizza lovers who want a personal touch.
- The franchise attracts families, busy professionals, and pizza enthusiasts looking for fast, fresh, and customizable meals.
- Since its founding in 2014, the business model has been refined to simplify operations while maintaining a high-quality product.
- The franchise’s commitment to using fresh, high-quality ingredients ensures repeat customers and strong word-of-mouth marketing.
How much does it cost to open a 1000 Degrees franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a 1000 Degrees franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a 1000 Degrees franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a 1000 Degrees below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $29,500 | $29,500 |
| Tile Package | $1,400 | $20,000 |
| Initial Development Package | $84,200 | $210,500 |
| Construction Design and Engineering Fees | $8,000 | $25,000 |
| Leasehold Improvements | $65,000 | $360,000 |
| Grand Opening Advertising | $10,000 | $25,000 |
| Permits | $500 | $5,000 |
| Legal Expenses | $500 | $2,000 |
| Insurance | $750 | $3,750 |
| Travel and Living Expenses while Training | $800 | $3,500 |
| Real Estate Rental Fees (inclusive of security and utility deposits) (first 3 months) | $1,000 | $45,000 |
| Opening Inventory | $4,000 | $20,000 |
| Additional Funds (first 3 months) | $15,000 | $35,000 |
| TOTAL | $220,650 | $784,250 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a 1000 Degrees franchise or a similar fast-casual pizza concept, there are several financial requirements to consider beyond the franchise fee. Here’s an overview based on industry standards and the stated total investment range:
- Total Investment Range $221,000 to $784,000, including expenses like leasehold improvements, kitchen equipment, and initial inventory setup. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Estimated $100,000 to $250,000 in available cash or liquid funds to cover working capital and other upfront costs; this ensures financial stability during the early months.
- Net Worth Estimated $500,000 to $1,000,000, depending on the market and location, to demonstrate overall financial capacity to support the business.
How much does a 1000 Degrees franchise owner make?
Calculating the salary of a 1000 Degrees franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a 1000 Degrees franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
1000 Degrees Revenue & Gross Sales
The median gross sales for 1000 Degrees have not been publicly disclosed. However, the franchise reports positive performance trends, including a return to pre-pandemic sales levels for many locations. While exact sales figures aren’t available, the focus on premium ingredients, customization, and fast service has helped 1000 Degrees carve out a niche in the competitive fast-casual pizza industry.
Which key factors impact the average revenue performance of 1000 Degrees franchisees?
The performance of U.S. franchisee median gross sales for 1000 Degrees is likely influenced by several key factors. The franchise’s focus on high-quality, customizable Neapolitan and Roman-style pizzas resonates with consumers who value fresh ingredients and quick service. Its unique two-minute cooking process offers convenience without compromising on taste, catering to fast-casual dining trends. The flexibility of its menu and the broad appeal of pizza ensure a steady customer base, while the use of premium ingredients enhances customer satisfaction and repeat visits. Strategic location selection in growing markets and the franchisor’s support in operations and marketing likely contribute to strong unit-level performance. Additionally, the streamlined processes and refined business model create operational efficiencies that help franchisees maximize revenue potential. Together, these elements establish a strong foundation for consistent sales growth across the system.
1000 Degrees Franchise Operational Costs
When operating a 1000 Degrees franchise, understanding and planning for primary ongoing operational costs is essential for sustained success. Here’s an overview of the key areas to consider:
- Employee Wages and Benefits Costs associated with hiring, training, and retaining staff, including hourly wages, payroll taxes, and optional benefits like health insurance.
- Ingredient and Food Supplies Regular procurement of fresh, high-quality ingredients to maintain the franchise’s commitment to top-tier menu offerings.
- Utilities and Energy Costs Expenses for electricity, gas, and water, particularly for powering the high-temperature ovens and maintaining a comfortable dining environment.
- Equipment Maintenance Routine upkeep and repairs for ovens, refrigeration, and other essential kitchen equipment to ensure smooth operations.
- Lease or Rent Payments Monthly costs for the physical location, which may vary depending on size, market, and lease terms.
- Insurance Policies to cover liability, property, and worker’s compensation, ensuring the business is protected against unforeseen events.
By carefully managing these operational costs, you can ensure that your franchise remains profitable while maintaining the high standards customers expect from 1000 Degrees.
1000 Degrees Franchise Fees
As a 1000 Degrees franchisee, it’s essential to understand the ongoing fees that come with operating under the brand’s banner. Here’s a breakdown of the key financial commitments you’ll need to plan for:
- Royalty Fee Set at 6% of gross sales, this fee is paid regularly to the franchisor. It ensures ongoing access to operational support, system updates, and resources that help maintain brand consistency and operational efficiency.
- Advertising Fee Up to 2% of gross sales is allocated to the franchise’s national marketing fund. This fee supports advertising campaigns, digital promotions, and other brand-wide marketing efforts designed to attract and retain customers.
- Local Advertising Franchisees are required to invest 2% of their gross sales in local marketing initiatives. This ensures your specific location gains visibility within your community through targeted campaigns, sponsorships, and other regional promotions.
- Additional Fees Costs for specialized training programs, proprietary technology systems, and other franchisor-provided tools may apply.
Understanding and planning for these fees is crucial to ensuring your business’s financial health while benefiting from the support and resources 1000 Degrees provides.
1000 Degrees Franchise Earnings
While specific earnings data for 1000 Degrees franchises is not available, we can provide an informed overview based on industry standards and the franchise’s unique characteristics. Fast-casual pizza franchises, particularly those emphasizing customization and quality like 1000 Degrees, often benefit from high customer demand and repeat visits. The franchise’s ability to prepare pizzas in under two minutes appeals to the time-conscious consumer, while its focus on fresh ingredients aligns with current dining trends. These factors position franchisees to capture a broad customer base, including families, young professionals, and casual diners, potentially supporting strong revenue streams.
While earnings can vary based on factors like location, market conditions, and individual management, franchises in this space typically aim for a balance between robust sales and controlled operating costs to drive long-term success.
How to Open a 1000 Degrees Franchise
Becoming a franchisee for 1000 Degrees involves a series of steps designed to ensure both you and the franchisor are aligned in terms of expectations, goals, and business operations. From your initial inquiry to the opening of your store, the process is structured to provide you with the necessary resources, training, and support to succeed. Here’s an overview of the key steps involved in becoming a 1000 Degrees franchisee:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Initial Meeting and Interviews This step typically involves meetings with the franchisor’s franchise development team. It’s an opportunity for both parties to assess compatibility, answer any remaining questions, and evaluate your background and qualifications.
- Franchise Application and Approval Submit a formal franchise application, which will include financial information, personal details, and your business plan. If approved, you’ll be offered a franchise agreement, which outlines all terms and conditions.
- Site Selection and Lease Negotiation Once your application is approved, you’ll begin the process of finding a location for your 1000 Degrees restaurant. The franchisor may assist in site selection and lease negotiation, ensuring the location meets brand standards and is in a high-traffic area.
- Training Program Before opening, you’ll complete an intensive training program provided by the franchisor. This will cover all aspects of running your franchise, including operations, customer service, inventory management, and marketing strategies.
- Store Build-Out and Equipment Installation With the location secured and training completed, the next step is building out your restaurant. The franchisor will assist in setting up the kitchen, dining area, and installing required equipment, ensuring it meets the brand’s specifications.
- Grand Opening and Start of Operations After everything is in place, you’ll have a grand opening, often supported by marketing efforts from both the franchisor and the local team. From there, you will begin regular operations, with continued support from the franchisor to ensure your success.
Pros & Cons
Pros
Unique Product Offering: 1000 Degrees focuses on customizable Neapolitan and Roman-style pizzas, offering a high-quality, fast-casual dining experience that appeals to a wide range of customers, including those seeking fresh and personalized meals.
Efficient Operations: The brand’s signature two-minute cooking time at 1000 degrees not only enhances the customer experience but also helps reduce operational costs, particularly in areas like labor and food waste.
Growing Market Demand: The fast-casual pizza segment has seen significant growth in recent years, as consumers increasingly prefer quick yet high-quality dining options. This trend is a strong indicator of the brand’s potential for continued success.
Flexible Menu Options: The wide variety of toppings and customizations appeals to a broad customer base, giving you flexibility in how you tailor your offerings to local tastes and preferences.
Cons
Location-Specific Performance: As with many restaurant franchises, the success of a 1000 Degrees franchise can be heavily influenced by location. Choosing the wrong site or failing to attract a steady stream of customers can significantly affect profitability.
Competition: While the fast-casual pizza market is growing, it is also highly competitive, with many well-established brands and new entrants vying for market share. Competing against other pizza brands in your area could impact your potential customer base.
Limited Brand Recognition: While 1000 Degrees is growing, it may not yet have the same level of brand recognition as larger pizza chains. This could make it more challenging to attract customers in highly competitive markets where established brands are more well-known.
