The estimated total investment necessary to begin the operation of a Little Caesars Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… ranges from $378,700 to $1,695,500.
Based on the median sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. estimated for Little Caesars franchise locations, at an average of a 15% profit margin it will take around 9.75 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 15% profit margin which would elongate getting a return on your investment.
When you go to sell a Little Caesars franchise based on the median multiple of .59 and 2021 AUV of $940,000, it would sell for $554,600. This is significantly lower than the midpoint investment of $1,037,000.
However, as an owner of multiple Little Caesars franchised locations, you do have the ability to minimize loss. Pizzeria owners with over $5 million in sales have a median multiple of 0.86. So, if you had 10 Little Caesars’ franchises, amounting to $9,400,000 in sales, selling your multiunit franchise system would amount to $8,084,000. This is also not going to recover your initial investment The amount of funds necessary to begin operations of a business or franchise including the first three months of operation. of $10,370,000. This might be a big reason for the decline of Little Caesars’ franchised locations – it just isn’t viable anymore.