Marco’s Pizza Franchise Costs, Fees & FDD

Year Business Began: 1978

Franchising Since: 1979

Headquarters: Toledo, Ohio

Estimated Number of Units: 1,205

Franchise Description: The franchisor is Marco’s Franchising, LLC. Marco’s Pizza stores feature the sale of various sizes and recipes of pizza. Stores also sell, to a much lesser extent, secondary products such as beverages, salads, CheezyBread, hot and cold sandwiches, Pizzolis, chicken wings, and desserts. Depending on their situation, franchisees may not be required to sell these secondary products. Stores are required to offer customer pick-up, delivery service, catering and may be authorized to offer fast casual type dine-in services. A Marco’s Pizza store typically occupies 1,200 to 1,600 square feet of commercial space.
Training Overview: Before the store opens, the franchisor will provide training to franchisees, as the store owner. If franchisees will not be participating in the on-site daily operations training, then the franchisor requires two designated trainees to complete the training program and earn certified operator status to meet the definition of a designated franchise operator. Currently, initial training consists of approximately 362.93 total training hours (16.8 hours of e-learning, 40 hours of remote/virtual instruction, 266 hours of on-the-job training, and 40 hours of in-person classroom training). Franchisees must, upon opening the store for business, implement and maintain a continuous training program for employees in accordance with applicable training standards and procedures the franchisor prescribes in the manuals or any subsequently published notices or memorandum. Franchisees or the designated franchise operator may also be required to attend refresher courses, seminars, and other training programs that the franchisor may reasonably require periodically.

Territory Granted: Once a permitted site is identified, the franchisor will identify an area surrounding the store as the “area of responsibility.” An area of responsibility comprises a mile radius from the front door of the permitted site. Although an area of responsibility is typically one mile, it could be smaller than a one-mile radius if there is a densely populated urban area, a readily definable market area like a resort or boardwalk, a specific facility (stadium, hospital, airport, casino, etc.) or a natural boundary like a body of water, bridge, or expressway. Franchisees may operate the franchised business only at the permitted site and may provide delivery services only in their area of responsibility (and any expanded “delivery area,” as described by the franchisor). Except for this territorial protection, franchisees will not receive an exclusive territory.

Obligations and Restrictions: Franchisees must devote their best efforts to operate the store at maximum capacity and efficiency. Franchisees must also maintain a high quality of work and services, provide suitable staffing and delivery vehicles, employ sufficient help to do same, and continuously remain open for business seven days per week throughout the year, with the exception of certain holidays and during business hours as specified in the manuals (except when the store is rendered untenantable for a period not to exceed 120 days by reason of fire or other casualty). Franchisees must perform the tasks as deemed reasonably necessary to adhere to the minimum performance standards established for the operation of the store. Franchisees may offer and sell only those goods and services that the franchisor has approved. Franchisees must offer all the goods and services designated as required for all franchisees.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two additional terms of 10 years each are available if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. Promotional incentive discounts for the franchise fee are available for qualified first responders, qualified US veterans, and qualified “key management employees.” Participants must meet the franchisor’s financial and creditworthiness criteria.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$25,000
Real Property	$6,000	$18,666
Equipment, Fixtures	$97,725	$175,000
Point of Sale Computers	$20,000	$23,000
Credit Card Processing	$6,700	$6,900
Leasehold Improvements	$65,000	$400,000
Signage	$3,000	$15,000
Opening Inventory	$7,000	$11,000
Small Supplies	$14,200	$18,500
Deposits, Pre-Paid Expenses	$2,500	$6,000
Business Licenses	$500	$3,000
Insurance	$2,366	$16,500
Training Expenses	$1,500	$8,650
Miscellaneous Expenses	$500	$5,000
Architectural and Engineering	$8,000	$15,000
Technology Fee	$336	$336
Delivery Area, Streets Database for POS, and Shape Files for POS and OLO Platform Maps	$500	$500
Brand Launch Program	$15,500	$25,500
Store Technology Infrastructure System	$800	$2,400
Menu Boards	$600	$1,200
Additional Funds (3 months)	$9,000	$30,000
ESTIMATED TOTAL	$286,727	$807,152

 
Other Fees

Type of Fee	Amount
Royalty	5.5% of net royalty sales (subject to adjustment up to a maximum of 6.0%).
Brand Launch Program	Up to $10,000.
Brand Development Fund	Currently, 1% of net royalty sales. (The franchisor has the right to increase this fee by 0.5% by giving franchisees 90 days prior written notice.)
Geography Based Advertising Funds (includes National Advertising Fund and Regional Advertising Fund)	The current amount of contribution required to the national advertising fund is 4% of net royalty sales. The amount of contribution required to a regional advertising fund depends on the geographic region in which the store is located. The total combined contribution to a national advertising fund and regional advertising fund will not exceed a total of 5.5% of net royalty sales combined for all levels of the geography based advertising funds.
Market Advertising Cooperative	Amount set and spend determined by co-op member votes
Local Store Marketing	Calculated at minimum of 7% minus the percentage contributed to the brand development fund, geography-based advertising funds, and any ad co-op.
Training Registration Fee	$225 per person.
Additional Training	$1,100 per person.
Replacement Designated Franchise Representative Training	$5,000 per person, plus the costs of any services requested by franchisees to translate the training program from English (varies).
Multi-Unit Leadership Excellence (MULE) Training Registration Fee	$550 per person.
Missed Training Instruction Make-Up or Retraining Fee	$85/hour per Marco’s instructor needed to accomplish the training to standard (billed in 30 min increments).
Additional Assistance	$300 per day.
Performance Deficiencies Service Fee	$500 per continued failure to comply with operational standards or policies.
Financial Reporting Fee	$100 per violation if financial reports are not submitted.
Relocation	$10,000 or 1/3 of the then-current initial franchise fee.
Transfer	$5,000 - $10,000
Renewal Fee	$6,250 or 25% of the then-current initial franchise fee, whichever is greater.
Insurance	Varies.
Interest and Additional Expense Fees	1.5% per month interest on all late payments, plus a 5% additional expense fee.
Delayed Opening Fee	90% of the weekly average system-wide sales, multiplied by 5.5%
Liquidated Damages	Average royalty fees, brand development fund contributions, and geography-based fund contributions paid or owed for the 39 accounting periods immediately preceding the effective date of the termination, multiplied by the lesser of: (a) 39; or (b) 90% of the number of accounting periods remaining in the term of the Franchise Agreement at the date of termination, discounted at a rate of 5% per annum.
Software Maintenance and Support Fees	$449 plus $6 each for camera franchisees have over 6.
Web Based Training (Marco’s University)	Payment included as part of the technology fee.
Technology Fee	$111.84 per accounting period by ACH.
Costs and Attorneys' Fees	Will vary under circumstances.
Audit Costs	All costs and expenses associated with the audit, reasonable accounting and legal costs; and interest on the underpayment.
Indemnification	Will vary under circumstances.
Securities Offering Fee	$2,500 or the franchisor’s actual expenses, whichever is greater.
Development Agreement Continuation Fee	90% of the weekly average system-wide sales, multiplied by 5.5%
Marco’s University Online & Inventory Tablet	$499 - $625
Email Upgrade Fee	$120 per account per year.

The above information has been compiled from the FDD of Marco’s Pizza. Year of FDD: 2025.
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