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Buying a Pizza Hut Franchise

Top 20 Most Popular Franchises: Pizza Hut

Vetted Biz is the leading platform for accessible and analytical data on franchises and businesses available in the U.S. Our research team has reviewed over 2,650 franchises and knows the key facts and data that signal a successful franchise system. Upon extensive review using a number of internet research tools, our team was able to compile a short list of the “Top 20 Most Popular Franchises in the United States.” In the article below, we review the business model proposed by one of these 20 franchises: Pizza Hut, as well as the requirements that encompass its franchise application process.

About Pizza Hut

Pizza Hut opened its first store in Wichita, Kansas in 1958 after its founders, brothers Dan and Frank Carney, borrowed $600 from their mother to finance their pizza dreams. Because their restaurant’s sign only had room for eight letters, the Carney brothers decided to name their concept “Pizza Hut,” a restaurant concept that created food they proudly served and delivered at a fast pace. Franchising began one year later, when the first franchised location opened in Topeka, Kansas, and by 1971 Pizza Hut became the No.1 pizza restaurant chain in the world in both sales and number of restaurants. Today, Pizza Hut is now a subsidiary of Yum! Brands and has over 6,000 franchised stores in the US and another 11,000 in international markets. Pizza Hut is currently headquartered in Plano, Texas and is run by its CEO Artie Starrs who previously served as President and Chief Financial Officer of Pizza Hut U.S.

How Much Does a Pizza Hut Franchise Cost?

The total investment amount to establish a Pizza Hut franchise ranges from $357,000 to $2,213,500. This includes the company’s franchise fee of $25,000. Once the store has been built and operations begin, franchisees are then expected to pay the parent company a royalty fee of 6% on gross sales, and a marketing fee of 4.75% in exchange for the marketing services provided by the franchisor. The franchisor is particularly looking for experienced candidates, who are open to working on the daily operations of the franchise and who have enough capital to commit to opening at least two locations throughout their time as a franchisee. That said, the minimum net worth required to own a Pizza Hut franchise is $700,000 and the applicant must have liquid assets totaling at least $350,000.

Pizza Hut in Numbers

When evaluating a Pizza Hut franchise’s potential for growth one does not need to go beyond Quick Service Restaurant numbers to better understand the prospect for success of the opportunity at hand. The fast-food industry generated $200 billion in revenues in 2015 and the industry has since been expected to have an annual growth of 2.5% for the following subsequent years. Pizza Hut itself was ranked one of the most valuable fast food brands worldwide, and in 2019 was ranked number 11 in QSR Magazine’s top 50. Looking at the franchise’s internal performance, although limited data was made available on the financial status of the company’s franchisees, it was found that only 270 franchises ceased operations in 2019 – an insignificant value when contrasted with the total amount of franchises under Pizza Hut’s franchise system. Moving forward, Pizza Hut is looking to establish new units particularly in the Northeast region of the country, including states such as New York, Massachusetts and New Hampshire.

Summary

Investing in a Pizza Hut franchise is an interesting opportunity, especially for individuals looking to make their way into the QSR industry.  The prospects for growth and success within the industry and the Pizza Hut brand itself, are extensive and a number of markets continue to be available as they move forward with growing their presence across the country. If you are an individual with extensive management experience and are willing to invest an amount ranging from $357,000 to $2,213,500 or more, Pizza Hut is the right franchise for you!