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Fox's Pizza Den Franchise ProfileFood Franchises > Pizza |
What Are the Initial Investment Requirements for a Fox's Pizza Den Franchise?
To open a Fox's Pizza Den franchise, you should be prepared for a total initial investment ranging from $107,800 to $244,000. This includes a franchise fee of $15,000. Additionally, you'll need to demonstrate a net worth between $250,000 and $500,000, with cash readily available within the same range. Understanding these financial commitments is crucial before proceeding with your franchise journey.
What Are the Ongoing Fees Associated with a Fox's Pizza Den Franchise?
As a franchisee, you will be responsible for ongoing fees that include a royalty fee of 6% of your gross sales and a marketing fee of 1.5%. These fees contribute to the overall brand presence and support provided by Fox's Pizza Den, helping to drive customer traffic and maintain brand consistency. It's important to factor these costs into your financial planning for sustained profitability.
What Is the Average Revenue Potential for a Fox's Pizza Den Franchise?
Franchisees can expect an average annual revenue of approximately $1,227,650 per unit, with a median annual revenue of $450,000. The lowest reported annual revenue is $74,200, while the highest reaches $140,000. These figures highlight the revenue potential within the franchise model, making it essential for prospective owners to evaluate their market and operational strategies to maximize earnings.
How Quickly Can You Expect to Break Even with a Fox's Pizza Den Franchise?
The breakeven time for a Fox's Pizza Den franchise is estimated at 6 months, with an investment payback period of around 12 months. This relatively quick turnaround can be attractive for aspiring franchisees, as it indicates the potential for early profitability. However, achieving these timelines will depend on effective management and local market conditions.
Fox's Pizza Den Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Fox's Pizza Den Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 18 | 8 | 16 |
| Net Change YoY | -10 | 8 | |
| Franchised Units | 18 | 8 | 16 |
| Net Change YoY | -10 | 8 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Fox's Pizza Den franchise offers a low to moderate initial investment range of $107,800 to $244,000. This includes a franchise fee of $15,000 and ongoing royalty fees of 6% of gross sales, along with a marketing fee of 1.5%. Aspiring franchisees should also have a net worth between $250,000 and $500,000 to qualify for ownership.
Financial Performance
Franchisees can expect an average annual revenue of approximately $1,227,650 per unit, with a median revenue of $450,000. The lowest recorded annual revenue is $74,200, while the highest is $140,000. This highlights the potential for profitability, depending on location and management.
Breakeven and Payback
A notable advantage of owning a Fox's Pizza Den franchise is the breakeven time of just 6 months. Additionally, franchisees can anticipate a payback period of around 12 months, allowing for quicker returns on their initial investment compared to many other franchise opportunities.
Franchise Growth
The Fox's Pizza Den has shown steady growth in franchising, with 18 units opened in 2020, followed by 8 in 2021, and 16 in 2022. This growth trajectory indicates a solid demand for the brand and potential for further expansion in new markets.
Corporate Structure
Fox's Pizza Den operates as a franchise under the corporate entity of Fox's Pizza Den, Inc. Founded in the 1980s, the company has built a reputation for offering high-quality pizza and a diverse menu, focusing on both dine-in and delivery services.
Operational Insights
Franchisees face operating expenses averaging $765,981 annually, which includes rent, salaries, and other costs. Understanding these expenses is crucial for effective financial management and maximizing profitability in each unit.
Frequently Asked Questions
The initial investment for a Fox's Pizza Den franchise ranges from $107,800 to $244,000, which includes the franchise fee and other startup costs.