|
Pie Five Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Pie Five Franchise?
To open a Pie Five franchise, you will need to prepare for an initial investment that ranges from $392,500 to $891,000. This includes a franchise fee of $30,000. Additionally, you should have cash readily available between $392,500 and $585,417 and a net worth of $500,000 to $1,000,000. Ensuring you meet these financial requirements is crucial for a successful start in this franchise opportunity.
What Are the Ongoing Fees Associated with a Pie Five Franchise?
Franchisees of Pie Five are required to pay a royalty fee of 6% on their gross sales, along with a marketing fee of 5%. These ongoing fees are important to maintain brand support and advertising efforts, which can significantly impact your franchise's visibility and profitability. Understanding these costs is essential for budgeting and financial planning.
What Is the Average Revenue Potential for a Pie Five Franchise?
Pie Five franchises can expect varying revenue outcomes, with an average annual revenue per unit reported at $12,319. However, revenues can range significantly, with the lowest annual revenue at $108,000 and the highest reaching $11,529. This variance highlights the importance of location, management, and marketing strategies in optimizing your franchise's performance.
How Quickly Can You Expect to Break Even with a Pie Five Franchise?
The breakeven time for a Pie Five franchise is approximately 12 months, with an investment payback period of around 24 months. This means that if managed well, franchisees can start recouping their initial investment within two years. Understanding these timelines can help you set realistic financial goals and expectations as you embark on your franchise journey.
Pie Five 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:
Pie Five Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 88 | 84 | 58 |
| Net Change YoY | -4 | -26 | |
| Franchised Units | 57 | 71 | 57 |
| Net Change YoY | 14 | -14 | |
| Corporate Units | 31 | 13 | 1 |
| Net Change YoY | -18 | -12 |
Investment Overview
The Pie Five franchise opportunity requires an initial investment ranging from $392,500 to $891,000. This includes a franchise fee of $30,000, with ongoing royalty fees set at 6% of gross sales and a marketing fee of 5%. Prospective franchisees should prepare for a cash requirement between $392,500 and $585,417, along with a net worth requirement of $500,000 to $1,000,000 to qualify for franchise ownership.
Financial Performance
The average annual revenue per Pie Five unit stands at $12,319, with a median revenue of $8,728. Units have reported a wide range of revenues, from a low of $108,000 to a high of $11,529. The breakeven time for new franchisees is approximately 12 months, while the investment payback period is estimated at 24 months, making it a potentially lucrative venture for dedicated operators.
Franchise Growth
Pie Five has shown a dynamic growth pattern in franchised units, with 57 units in 2017, increasing to 71 in 2018, and stabilizing at 57 units in 2019. The total units, including corporate locations, peaked at 88 in 2017 before declining to 58 in 2019, indicating a shift in focus towards optimizing existing locations rather than aggressive expansion.
Operational Costs
Operating expenses for a Pie Five franchise can be significant, with total annual expenses averaging around $72,552. Key costs include general and administrative expenses of $5,274, franchise expenses of $3,778, and rent averaging $10,000. Additionally, franchisees should budget for utilities, insurance, and grand opening advertising, which are crucial for establishing a strong market presence.
Brand Positioning
Pie Five specializes in customizable personal pizzas, catering to the growing demand for quick-service dining that emphasizes quality and personalization. The brand aims to provide a unique dining experience by allowing customers to choose from a variety of fresh ingredients and sauces, aligning with current consumer trends towards healthy and customizable meal options.
Support and Training
Franchisees can expect comprehensive support and training from the Pie Five corporate team. This includes assistance with site selection, operational training, marketing strategies, and ongoing operational support. The franchise system is designed to ensure that franchisees have the tools and resources necessary to succeed in a competitive market, fostering a collaborative community among franchise owners.
Frequently Asked Questions
The initial investment for a Pie Five franchise ranges from $392,500 to $891,000. This includes the franchise fee of $30,000 and other startup costs.