Round Table Franchise For Sale (2024)
Round Table Franchise is a well-established chain of pizza parlors in the Western United States. The company was founded by William R. Larson in 1959 and has since grown to over 400 restaurants. Headquartered in Atlanta, Georgia, Round Table Pizza has become known for its delicious pizza recipes and unique crust.
William Larson, born in San Jose, California, on January 30, 1933, had a diverse work background before venturing into the restaurant industry. After serving four years in the U.S. Navy, Larson gained valuable experience from various jobs that eventually led him to open his restaurant.
On December 21, 1959, Larson opened his first pizza parlor in Menlo Park, California at 1235 El Camino Real. He named it Round Table Pizza after the round redwood tables he and his father constructed for the establishment. This original location would later be moved a few years later, but still exists today under the ownership of Bob Larson (William’s son).
Larson’s recipe and crust quickly gained popularity among customers and entrepreneurs alike through word-of-mouth referrals. Under William’s leadership until 1978 when he retired as CEO of Round Table Pizza Inc., the company expanded rapidly with over 225 stores.
Round Table Franchise For Sale (2023)
To overcome the financial challenges faced by Round Table Pizza Inc., including filing for Chapter 11 bankruptcy protection in 2011 due to economic downturns during that time; they emerged from bankruptcy that same year thanks largely because their Consensual Plan of Reorganization enabled them not only repay all their secured/unsecured creditors but also retain full employee ownership rights ensuring continued success going forward while steadily improving overall financial strength through debt retirement & increased cash flow generation.
Continuing its growth trajectory, Round Table Pizza was acquired by Global Franchise Group on September 15th, 2017. However, in the same month, all seven branches located in Dubai were closed down.
In celebration of its 60th anniversary in 2019, Round Table Pizza underwent a rebranding with a new logo and motto: “Pizza Royalty”. The chain also expanded to the Dallas-Fort Worth metroplex for the first time that year, with new locations opening up in Frisco and near Southern Methodist University’s campus in University Park.
On June 28th, 2021 it was announced that Global Franchise Group would be acquired by FAT Brands who are owners of Fatburger & Johnny Rockets; the acquisition was completed on July 22nd.
How is Round Table Pizza Franchise Positioned in the Food and Beverage Industry?
Round Table Franchise is positioned in the food and beverage industry as a well-established chain and franchise of pizza parlors. With over 400 restaurants, Round Table Pizza has a strong presence in the Western United States. The company is known for its delicious pizza recipes and unique crust, which have gained popularity among customers.
In terms of market size, the pizza restaurant industry in the United States is significant. In 2021, pizza restaurant sales exceeded $45 billion, with the overall market size reaching over $55 billion. This indicates that there is a high demand for pizza among consumers.
Despite the impact of the COVID-19 pandemic on the industry, which resulted in a decline in the number of pizza restaurants throughout the country from 2020 to 2021, Round Table Pizza remains positioned as an established player with its extensive network of locations.
Overall, Round Table Pizza benefits from being part of a thriving segment within the food and beverage industry and has established itself as a reputable brand with loyal customers.
How Much is a Round Table Pizza Franchise?
The initial Round Table Pizza Franchise Fee is $25,000. You have to pay this upfront fee when opening a Round Table Pizza franchise.
Round Table Pizza Franchise Cost
The estimated total investment necessary to begin the operation of a Round Table Pizza Franchise ranges from $504,000 to $1,062,500. The following costs are part of the upfront costs included in the initial investment for a Round Table Pizza. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Round Table Pizza franchise in 2023.
Estimated Initial Investment
| Expenditure | Amount | Method Of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | Lump sum unless we require deposit | At signing of Franchise Agreement | Franchisor |
| Travel And Living Expenses While Training | $1,500 to $3,500 | As incurred | As incurred | Airlines, hotels, and restaurants |
| Real Estate And Improvements | $200,000 to $600,000 | As incurred | As incurred | Contractors, architects |
| Furniture, Fixture & Equipment | $202,000 to $295,000 | As incurred | As incurred | Vendors |
| Point Of Sale Equipment | $18,000 to $30,000 | As incurred | As incurred | Vendor |
| Opening Inventory/Smallwares | $12,000 to $15,000 | As incurred | As incurred | Vendors |
| Interior Décor Package/Exterior Signage | $15,000 to $35,000 | As incurred | As incurred | Vendors |
| Uniforms | $1,000 to $2,000 | As incurred | As incurred | Vendors |
| Insurance | $4,500 to $7,000 | Lump sum or cash installment | Upon opening or monthly | Insurance company |
| Additional Funds – 3 Months | $25,000 to $50,000 | As incurred | As incurred | Vendors, suppliers, employees and others |
| Total | $504,000 to $1,062,500 |
Owning a Round Table Pizza Franchise Requires Ongoing Fees
Royalty: Greater of (i) 4% of Net Sales generated by your Restaurant over the prior reporting period, or (ii) $750 per month
Marketing Fee: 4% of Net Sales
How much do Round Table Pizza franchise owners make?
While Round Table Pizza does not disclose financials, based on 2021 royalties of $8,200,244 distributed evenly across 410 locations, the average unit volume is $500,014.
2021 Round Table Pizza Franchise Sales: $500,000
2021 Round Table Median Franchise Sales: $843,456
| Initial Investment (Midpoint) | % Profit Margin of Average Franchise Sales | Estimated Profits | Time to Recoup Investment |
|---|---|---|---|
| $780,000 | 10% | $50,000 | 17 years |
| $780,000 | 15% | $75,000 | 12 years |
| $780,000 | 20% | $100,000 | 9 years |
Based on the median sales provided by Round Table Pizza’s franchise locations, at an average of a 15% profit margin, it will take around 12 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.
Many factors affect the sales, costs, and expenses of your Franchised Store. Such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace. The presence of other Food and Beverage stores; the extent of market penetration and brand awareness that Round Table Pizza stores have attained in your market. Also, the quality of management and service at your Franchised Store are major factors.
Is the Round Table Pizza Franchise Profit Worth the Franchise Cost?
To assign a valuation multiple for Round Table Pizza franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry as well as selling price multiples for larger systems where more transaction data is available.
Under $5 Million Net Sales: Estimated Selling Price = Net Sales * 0.55
When you go to sell a Round Table Pizza franchise based on the median multiple of .55 and net sales of $500,000, it would sell for $275,000. This is significantly lower than the midpoint investment of $780,000.
Below is an example of a Round Table Franchise for sale in BizBuysell:
Asking Price: $395,000
Cash Flow: $118,672
Gross Revenue: $946,601
Established: 2002
The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators.
How many Round Table Pizza units have opened and closed?
Outlet Type, Store Count, and Net Change
| Outlet Type | Year | Stores at the Start of the Year | Stores at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 356 | 357 | +1 |
| 2020 | 357 | 376 | +19 | |
| 2021 | 376 | 410 | +34 | |
| Affiliate Owned | 2019 | 73 | 70 | -3 |
| 2020 | 70 | 38 | -32 | |
| 2021 | 38 | 4 | +34 | |
| Total | 2019 | 429 | 427 | -2 |
| 2020 | 427 | 414 | -13 | |
| 2021 | 414 | 414 | 0 |
Over the last three years, the company has been in decline. While franchising units have increased, company-operated stores have decreased. Over the last three years, franchises have opened at a rate of 18 units a year. The reduction in company-owned stores might be related to the bankruptcy the company went through.
Conclusion
Round Table Pizza is a well-established chain and franchise of pizza parlors in the Western United States. Founded in 1959, the company has grown to over 400 restaurants and is known for its delicious pizza recipes and unique crust. Despite facing financial challenges, including filing for bankruptcy in 2011, Round Table Pizza has emerged as an established player in the industry.
While this may be the business for you, make sure also to check out other companies offered on Vetted Biz and in the Food and Beverage industry.
