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Pieology Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Pieology Franchise?
To open a Pieology franchise, you should be prepared for an initial investment ranging from $304,000 to $807,500. This includes a franchise fee of $25,000. Additionally, you will need to meet a net worth requirement of $500,000 to $1,500,000. It's essential to have sufficient cash on hand to cover these costs and ensure you can support your franchise during its early stages.
What Ongoing Fees Should You Expect as a Pieology Franchisee?
As a Pieology franchisee, you will be responsible for ongoing fees, including a royalty fee of 5% of your unit's revenue and a marketing fee of 2%. These fees are crucial for maintaining brand standards and supporting marketing efforts that drive customer traffic to your restaurant. Understanding these costs will help you plan your budget effectively.
What Are the Financial Performance Metrics for Pieology Units?
On average, Pieology units generate annual revenues of approximately $1,124,000, with the highest reported revenue reaching $1,200,000. The average gross profit margin is around 40%, translating to a gross profit of about $1,885,486 per unit. Additionally, the average EBITDA stands at 28.4%, indicating strong operational efficiency. These metrics can help you gauge the potential profitability of investing in a Pieology franchise.
How Quick Can You Expect to Break Even with a Pieology Franchise?
Franchisees can anticipate a breakeven time of around 12 months, which aligns with the investment payback period. This relatively quick return on investment is appealing for potential franchisees, as it suggests that with effective management and marketing strategies, you could start seeing profits within your first year of operation.
Pieology 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:
Pieology 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 | 119 | 116 | 119 |
| Net Change YoY | -3 | +3 | |
| Franchised Units | 116 | 111 | 110 |
| Net Change YoY | -5 | -1 | |
| Corporate Units | 3 | 5 | 9 |
| Net Change YoY | +2 | +4 |
Investment Overview
The Pieology franchise offers a range of initial investment costs, with a low end at $304,000 and a high end reaching $807,500. The initial franchise fee is set at $25,000, while ongoing royalty fees are 5% of gross sales. Additionally, franchisees contribute 2% of their gross sales towards marketing efforts.
Financial Requirements
Prospective franchisees are required to have a net worth between $500,000 and $1,500,000. Cash on hand should also fall within the range of $304,000 to $807,500, ensuring that franchisees have the necessary financial stability to support their operations.
Revenue Potential
Pieology franchises demonstrate strong revenue potential, with average annual revenue per unit at approximately $1,124,000. Units can achieve a breakeven point in just 12 months, and investment payback is also expected within the same timeframe, indicating a solid return on investment.
Franchise Growth
The Pieology franchise has shown consistent growth over the years, with 116 franchised units in 2020, slightly decreasing to 111 in 2021, and stabilizing at 110 in 2022. The number of corporate-owned units has increased from 3 in 2020 to 9 in 2022, reflecting a strategic focus on expanding brand presence.
Operating Performance
The average annual revenue for Pieology units is reported at $4,725,486, with a gross profit margin of 40%. Operating expenses account for 11.5% of revenue, leading to an EBITDA of approximately $1,343,074, which is 28.4% of total revenue, showcasing effective cost management.
Franchise Support
Pieology provides comprehensive support for its franchisees, including training programs, marketing assistance, and operational guidance. This support is crucial for new franchise owners to navigate the initial challenges of running a business and to optimize their profitability in the competitive fast-casual dining sector.
Frequently Asked Questions
The initial investment for a Pieology franchise ranges from $304,000 to $807,500. This includes the franchise fee, equipment, and other startup costs.