Are you exploring the possibility of opening a pizza franchise? It’s an industry that’s booming now, so much so that pizza was identified as the fastest growing division of casual restaurants in 2017. Going with a franchise is also quite practical because systems are already in place and all you have to do is to execute the tried-and-tested franchise plan. In time, you will find yourself earning passive income through your chosen franchise.
Pizza Franchise Opportunities
Now is the perfect time to invest in a pizza franchise, and the key to your success is choosing a profitable pizza brand. Here are some of the best pizza franchise opportunities you may want to take a look at:
Pizza Hut is a good American household name. It was founded in 1958 and has now grown to more than 15,000 branches around the world. Choose Pizza Hut if you love its Italian-American food, offering not only pizza but pasta and other assorted dishes as well.
- Initial franchise fee: $25,000
- Initial investment: $302,000
Toppers Pizza is a group of pizzerias that is relatively young, having started in 1991 in Champaign, Illinois. Its headquarters are now in Whitewater, Wisconsin. Toppers Pizza is well remembered by its patrons for its one-of-a-kind toppings, high-quality and freshly made food, efficient delivery system, and very friendly customer service.
Toppers Pizza is proud of its 18 signature pizzas, as well as its signature product Topperstix, famous Buffalo wings, and quesadillas. These surely make for an interesting pizza restaurant with a Mexican touch.
- Initial franchise fee: $20,000
- Initial investment: $450,000
Domino’s Pizza is another well-known pizza brand founded in 1960. The company’s headquarters are located at the Domino’s Farms Office Park in Ann Arbor, Michigan. In 2018, Domino’s Pizza chain gained recognition for being the biggest pizza seller in the whole world.
Domino’s Pizza offers a variety of pizza styles, such as the deep dish, thin crust, and New York styles. It attracts many fans with its vast offerings of toppings and promos. Customers keep coming back for their reasonably priced meals.
Its menu includes breadsticks, buffalo wings, pasta, sandwiches, and desserts. Domino’s Pizza also offers online ordering and tracking, giving customers an exact idea of when their orders will be ready for pickup.
- Initial franchise fee: $25,000
- Initial investment: $119,950
Papa Murphy’s was born out of a merger between Papa Aldo’s pizza chain in Oregon and Murphy’s Pizza in California. The two pizza chains joined together to become one brand in 1995.
What sets Papa Murphy’s apart from other pizza chains is its Take ‘N’ Bake pizza, which customers can purchase and take home to bake in their own homes. How unique! Papa Murphy’s is the world’s leading take-and-bake pizza chain in the world, boasting over 1,500 stores across the globe.
Papa Murphy’s also offers fresh calzone and lasagna. It’s is definitely a franchise worth considering!
- Initial franchise fee: $25,000
- Initial investment: $274,620
Effective Pizza business plan
Choosing a pizza franchise is the first step. Making an effective business plan is the critical second part. Here are some pointers you can follow when you make your pizza business plan:
1. Begin by giving an executive summary of your business.
In the first two pages of your plan, write down the most important details about your business. Be clear and concise in explaining what your pizza franchise offers, how it will generate income, and why customers would choose your pizza franchise over others.
If you want to bring other investors on board, state the amount of money you need for your pizza franchise and detail how you plan to use the funds. Be transparent.
One very practical tip when you do your business plan: write the executive summary after you complete your business plan. Working backwards will ensure you cover everything in your plan when you write your summary.
2. Identify your franchise’s market opportunity.
When you talk about market opportunity, here are some of the questions you can answer in your business plan:
- How big is your target market?
- How quickly is your market growing?
- What are the opportunities available? How do you plan to take advantage of these opportunities?
- What are the threats? How will you address these threats?
You can research your market information by tapping into industry associations, contacting chambers of commerce, checking census data, or interviewing other pizza franchise owners. Don’t forget to cite your sources to support your data.
3. Assess your pizza franchise’s competition.
While you may be 100% sold on your business, do a reality check and study what other pizza franchises are offering. Here are some questions you can consider:
- Who are your competitors?
- What exactly do they sell? What unique products do they sell, aside from pizza? What unique services do they offer?
- How big is their share in the market?
- Why will customers go to your pizza restaurant over other pizza chains?
When studying the competition, look at other popular restaurants in your area as well. While these restaurants may be selling other kinds of food, they may indirectly affect the sales of your pizza franchise.
4. Write about how you plan to execute your business ideas.
For this section of your business plan, go into detail about the people in your team. Here are some points you need to include:
- Who are the founders of your team?
- Who are your partners? Who are the officers?
- What kinds of skills and qualifications does each partner/officer contribute to the business?
- What is your business model?
- What are your revenue streams? (Give details about your product sales, advertising plan, services, and licensing.)
- How will your franchise’s cost structure look like? (Provide information on salaries, rent, inventory, and maintenance.)
- What assumptions are you working with? How can you justify each assumption?
- Who are your main suppliers and distribution partners?
5. Devote a section towards the financial performance of your pizza franchise and financial projections.
Anyone reading your business plan has one foremost question in mind: Exactly how much income can your business make? And when will the money come?
Here are some details you need to include in the finance section of your plan:
- How is the financial performance of the other branches of your pizza franchise?
- What are your projections for profit and loss?
- How does your balance sheet look like?
- What are the details of your cash-flow statements?
- How much income do you need to recover your initial investment?
Writing a comprehensive business plan can get your pizza franchise off to a good start. It doesn’t stop there, however. Periodically, you have to visit and revisit your business plan and see how you can make improvements. Your business plan serves as your blueprint for success. Set yourself apart from other pizza franchise owners by coming up with a solid business plan that is open to revisions and innovation. To learn more about earning passive income franchiseknowhow.com offers valuable information about the franchising industry. Have a good learning attitude, and you’ll surely succeed!