Little Caesars
Date Incorporation: 1962
Franchising Since: 1962
Headquarters: Michigan
Description: The franchise is for the establishment and operation of a Little Caesars® restaurant, which features pizza, chicken wings, Crazy Bread® products and other related products.
Franchise Offer: Under the franchise agreement Little Caesar grants the franchisee the right to operate a single Little Caesars® restaurant at a location approved by the franchisor and within a certain protected territory. New Little Caesars® restaurants, including any restaurant developed by the franchisee, are carryout only restaurants and sometimes featuring a drive-thru window. The franchisee may also sign a territory reservation agreement that allows him/her the opportunity to open a number of franchises within a reserved territory.
Financial Assistance: The franchisor does not offer direct or indirect financing.
Training and Assistance: Before opening of the restaurant, the franchisee (or if it is a corporation or partnership, a principal acceptable to the franchisor) and those employees specified by the franchisor, must attend and complete the pre-opening training program, which includes a 2-day real estate/architectural/equipment training program that must be completed before the trainees can attend the remainder of the pre-opening training program. Training will be provided primarily at the franchisor's headquarters and at company-owned restaurants in Detroit, Michigan. Training will include classroom instruction and formal on-the-job training in certified training restaurants
After opening, the franchisor will provide required and optional training programs as deemed appropriate.
Territory: The franchise agreement grants the franchisee the right to operate the restaurant only at the approved location. The franchisee will not receive an exclusive territory. However, except as otherwise provided in the franchise agreement, during the term of the franchise agreement, Little Caesars will not establish or operate, or franchise any entity to establish or operate, a business using the proprietary marks and system at any location within the protected territory.
Term of Agreement and Renewal: The term of the franchise agreement is generally 10 years. It can be renewed for one 10-year period.
Obligations and Restrictions: Little Caesars requires that the franchisee personally supervises the operation of the restaurant. If the franchisee is granted franchises for more than one restaurant, he/she must continue to personally supervise the operation of all the restaurants. If the restaurants are located in different market areas or if the franchisee does not reside in the same geographic area as the restaurants, the franchisor wil need to approve the on-site operator(s).
The franchisee must sell or offer for sale only such products and services that meet the franchisor's uniform standards of quality. The franchisee must sell or offer for sale all products and services required by the franchisor.
Total Number of Units:
1934 units by year end 2007
Total Number of franchises Units:
1505 franchised units by year end 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $15,000 | $20,000 |
| Rent | $1,500 | $5,000 |
| Leasehold improvements | $50,000 | $250,000 |
| Fixtures, equipment and signage | $80,000 | $170,000 |
| Grand opening advertising | $5,000 | $10,000 |
| Training expenses | $7,000 | $9,000 |
| Start-up inventory and supplies | $15,000 | $27,000 |
| Insurance | $500 | $1,500 |
| Utility expenses | $1,000 | $5,000 |
| Licenses and permits | $50 | $1,500 |
| Additional funds (3 months) | $10,000 | $20,000 |
| Total | $185,050 | $519,000 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty fee | 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 Little Caesars, with no more than 4% to Caesar fund. |
| Renewal fee | $2,500 |
| Maintaining restaurant premises in good repair | Varies |
| Refurbishing restaurant | Varies with restaurant concept, but generally not more than $65,000 |
Date of FDD: March 31, 2008
The above information has been taken from the UFOC/FDD of Little Caesar's
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