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MOD Pizza Franchise ProfileFood Franchises > Pizza |
How Much Does a MOD Pizza Franchise Cost?
Opening a MOD Pizza franchise requires a total initial investment ranging from $859,000 to $1,393,634. This includes an initial franchise fee of $30,000. Prospective owners must demonstrate financial stability, with a required liquid cash availability of $195,000 and a total net worth between $1,000,000 and $5,000,000. Beyond the startup costs, franchisees are responsible for ongoing fees, including a 5% royalty fee on gross sales and a 3% marketing fee to support brand-wide advertising efforts.
What is the Financial Performance and Growth of MOD Pizza?
Based on the latest data, MOD Pizza units show a strong earning potential with a highest annual revenue per unit reaching $1,166,000 and a median annual revenue across the system within the $1,000,000 to $5,000,000 range. The business model is designed for efficiency, with a reported breakeven time of approximately 9 months and an investment payback period of 95 months. The brand has seen steady growth in its franchise network, increasing from 82 franchised units in 2021 to 86 units by 2023, while maintaining a significant corporate presence of over 420 company-owned locations.
Why Should You Consider Starting a MOD Pizza Franchise?
MOD Pizza is a leader in the fast-casual pizza segment, known for its "individual pizzas, any toppings, one price" concept. Starting a franchise allows you to tap into a proven business model that balances a high volume of corporate-owned stores with a growing franchise base. The brand focuses on speed, quality, and a unique culture that prizes community impact. With average annual revenues per unit showing strong performance, it offers a compelling opportunity for entrepreneurs who are passionate about the food industry and have the capital to invest in a high-growth, modern pizza brand.
Is Owning a MOD Pizza Franchise the Right Move for You?
Deciding to join the MOD Pizza family requires a commitment to maintaining high standards of customer service and operational excellence. With a total unit count exceeding 500 locations across the United States, the brand has established a significant market footprint. You should evaluate your local market competition and ensure you meet the substantial net worth requirements before applying. If you are looking for a franchise with a rapid breakeven timeline and a robust support system backed by hundreds of corporate locations, MOD Pizza may be the right investment for your portfolio.
MOD Pizza 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:
MOD Pizza Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 489 | 573 | 508 |
| Net Change YoY | N/A | +84 | -65 |
| Franchised Units | 82 | 84 | 86 |
| Net Change YoY | N/A | +2 | +2 |
| Corporate Units | 407 | 489 | 422 |
| Net Change YoY | N/A | +82 | -67 |
Investment Requirements
Starting a MOD Pizza franchise requires a total initial investment ranging from $859,000 to $1,393,634. Prospective franchisees must meet specific financial criteria, including a liquid cash requirement of $195,000 and a net worth between $1,000,000 and $5,000,000. These figures cover the essential startup costs, including the initial franchise fee of $30,000, equipment, and leasehold improvements.
Ongoing Fees and Royalties
Operating under the MOD Pizza brand involves recurring fees to support the franchise infrastructure. Franchisees are required to pay a royalty fee of 5% of gross sales for new units. Additionally, there is a marketing fee of 3% of gross sales, which contributes to brand development and national advertising efforts to drive customer traffic to the locations.
Unit Growth and Network Scale
MOD Pizza maintains a substantial presence with a mix of corporate and franchised locations. As of 2023, the network consisted of 508 total units, comprising 86 franchised units and 422 corporate-owned stores. While the number of franchised units has seen steady growth from 82 in 2021 to 86 in 2023, the brand remains heavily supported by its corporate-owned infrastructure.
Financial Performance Indicators
The brand demonstrates strong revenue potential, with the highest annual revenue per unit reaching $1,166,000. While the median annual revenue per unit falls within the $1,000,000 to $5,000,000 range, the lowest recorded annual revenue for a unit was $1,166,008. These figures reflect the high-volume nature of the fast-casual pizza segment and the brand's market positioning.
Payback and Breakeven Timeline
For new franchisees, the business model is designed for a relatively quick operational transition. The average breakeven time for a unit is approximately 9 months, allowing owners to stabilize their operations within the first year. The total investment payback period is estimated at 95 months, providing a long-term roadmap for capital recovery and profitability.
Franchise Opportunity
MOD Pizza offers a unique opportunity to join a leading brand in the fast-casual pizza industry. With a proven system and a significant corporate footprint, franchisees benefit from a recognized name and established operational protocols. The initial fee of $30,000 grants access to the brand's intellectual property, training, and support systems necessary to launch a successful location.
Frequently Asked Questions
The total initial investment for a MOD Pizza location typically ranges from $859,000 to $1,393,634. This investment covers various startup costs, including the initial franchise fee, construction, and equipment.