Little Caesar's Franchise Cost & Fees
Date of Incorporation: 1959
Franchising Since: 1962
Headquarters: Detroit, Michigan
Business Description: Little Caesars restaurants feature pizza, chicken wings, Crazy Bread® products and other related products.
Franchise Offer: Under the Franchise Agreement, the franchisor grants the franchisee the right to operate a single Little Caesars restaurant at a location that it approves, in most cases within a certain protected territory. The primary menu items of Little Caesars restaurants are pizza, chicken wings, Crazy Bread® products and other related products.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee the franchisee’s note, lease or obligation.
Training and Assistance: The franchisor conducts initial training primarily at its headquarters and at company-owned Restaurants in Detroit, Michigan. Training will include classroom instruction and formal on-the-job training in certified training Restaurants. The franchisee and other employees the franchisor designates must attend such additional training programs as the franchisor may reasonably require periodically and at any time. The franchisee or a principal or an individual the franchisee designates and the franchisor approves must attend all meetings, seminars and conferences specified as mandatory.
Territory: The Franchise Agreement grants the franchisee the right to operate the Restaurant only at the Approved Location. The Franchise Agreement typically defines an exclusive territory within which the franchisor will not establish or operate, or franchise any entity to establish or operate, a business using the Proprietary Marks and System. The Protected Territory is usually defined the as the territory within a one mile radius of the Approved Location. Under certain circumstances, however (e.g. the Restaurant will be located in a highly populated urban area), the Protected Territory may be reduced to a distance of ½ mile or less, or a Protected Territory won’t be granted.
Term of Agreement and Renewal: The length of the initial franchise term is generally 10 years. There is generally one renewal term of 10 years from the initial term. All renewals are subject to contractual requirements.
Obligations and Restrictions: The franchisor requires that the franchisee personally supervise the operation of the Restaurant. If the franchisee is granted franchises for more than one Restaurant, the franchisee must continue to personally supervise the operation of all the Restaurants. To ensure that the highest degree of quality and service is maintained, the franchisee must operate the Restaurant in strict conformity with the methods, standards and specifications that the franchisor prescribes in the Operational Resource Guide or otherwise in writing.
Estimated Number of Units: 4,100
|Name of Fee||Low||High|
|Initial Franchise Fee||$0||
|Fixtures, Equipment and Signage||$150,000||$225,000|
|Grand Opening Advertising||$12,000||$20,000|
|Start-up Inventory and Supplies||$25,000||$35,000|
|Licenses and Permits||$1,000||$10,000|
|Additional Funds - 3 months||$17,000||$47,000|
|Type of Fee||Amount|
|Royalty||The greater of 6% of Gross Sales for each one-week period or $100 for each one-week period.|
|Advertising Contributions||Up to 7% of Gross Sales, as determined by the franchisor.|
|Blue Line Purchases||Varies.|
|Caesar Vision System Annual Support Fee||$1,500 per year per Restaurant.|
|M.I.K.E System Connection Fee||To be determined.|
|Audit by Franchisor||Costs of audit plus interest.|
|Additional Training||Not more than $250 per attendee for initial training of additional employees.|
|Transfer Fee||Varies from $0 to $5,000 per unit.|
|Indemnification||Will vary with circumstances.|
|Special Marketing, Management, and Operational Assistance Performed at Franchisee's Request||Reasonable fee plus expenses.|
|Private Securities Offering||$25,000 plus additional sums to cover the franchisor's out-of-pocket costs to review the materials if greater than $25,000|
|Interest||18% per year or the maximum rate permitted by law, whichever is less.|
|Late Fee||Franchisor's then-current late fee.|
|Missed Meeting Fee||Varies.|
|Manual Replacement Fee||Franchisor's then-current fee.|
|Liquidated Damages Upon Termination for Franchisee's Default||Calculated according to formula in FDD.|
|Liquidated Damages - Failure to Comply with Post-Termination Obligations||$250 per day.|
|Costs and Legal Fees||Franchisor's actual costs.|
The above information has been taken from the FDD of Little Caesars. Year of FDD: 2015
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