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Round Table Pizza Franchise ProfileFood Franchises > Pizza |
Investment Overview for Round Table Pizza Franchise
To start a Round Table Pizza franchise, you should prepare for a significant initial investment ranging from $347,300 to $1,091,500. This includes a franchise fee of $25,000 and ongoing royalty and marketing fees of 4% each. It's crucial to have a cash reserve between $504,100 and $1,091,500 and a net worth of $500,000 to $1,000,000 to meet the financial requirements for ownership.
Revenue Potential of Round Table Pizza Franchise
Round Table Pizza franchises have shown promising financial performance, with an average annual revenue of $1,087,024 per unit. The revenue can vary significantly, with the lowest reported annual revenue at $209,855 and the highest reaching $4,960,490. Understanding these figures can help you assess the potential profitability of your investment.
Operational Insights for Round Table Pizza Franchise
The average operating expenses for a Round Table Pizza unit are around $368,000, which is approximately 34% of total revenue. With a gross profit margin of 75.12%, franchisees can expect a healthy EBITDA of about $447,840, or 41.19% of revenue. These metrics are vital for managing operational efficiency and ensuring long-term success.
Franchise Growth and Market Presence
Round Table Pizza has shown consistent growth in franchised units, increasing from 361 units in 2020 to 409 units in 2022. The reduction in corporate units—from 70 in 2020 to just 4 in 2022—indicates a strategic shift towards franchising. This trend highlights the brand's commitment to expanding its franchise network, creating opportunities for new franchisees to join a growing brand.
Round Table 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:
Round Table Pizza 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 | 431 | 418 | 413 |
| Net Change YoY | -13 | -5 | |
| Franchised Units | 361 | 380 | 409 |
| Net Change YoY | 19 | 29 | |
| Corporate Units | 70 | 38 | 4 |
| Net Change YoY | -32 | -34 |
Franchise Overview
Round Table Pizza is a well-known pizza franchise with a rich history dating back to 1959. With a focus on high-quality ingredients and a commitment to customer satisfaction, Round Table has established itself in the competitive pizza market. The brand is recognized for its unique pizza offerings, including specialty pies and fresh toppings, appealing to a diverse customer base.
Investment Requirements
To open a Round Table Pizza franchise, potential franchisees should expect an initial investment ranging from $347,300 to $1,091,500. This includes a franchise fee of $25,000. Franchisees must also demonstrate a net worth of $500,000 to $1,000,000 and have cash available between $504,100 and $1,091,500 to cover startup costs and initial operating expenses.
Financial Performance
Round Table Pizza franchises have shown promising financial metrics, with an average annual revenue of $1,087,024 per unit. The median revenue is slightly lower at $1,027,564, while some units have reported revenues as high as $4,960,490. The business model supports a strong gross profit margin of 75.12%, indicating robust profitability potential for franchise owners.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 4% of gross sales, along with a marketing fee of 4%. These fees help support the brand’s marketing initiatives and operational support, ensuring that franchisees benefit from brand recognition and customer loyalty as they grow their businesses.
Operational Insights
Round Table Pizza franchises typically achieve a breakeven point within 18 months, with an investment payback period of about 15 months. This timeline reflects the efficiency of the business model and the strong customer demand for the brand's products. Franchisees can expect ongoing support from the corporate team to help navigate operational challenges and optimize performance.
Growth and Expansion
As of 2022, Round Table Pizza has seen steady growth in its franchise network, with 409 franchised units compared to 361 in 2020. This growth trajectory suggests a strong brand presence and increasing market demand. The franchise continues to explore opportunities for expansion, making it an attractive option for aspiring entrepreneurs looking to enter the pizza sector.
Frequently Asked Questions
The initial investment for a Round Table Pizza franchise ranges from $347,300 to $1,091,500, which includes the franchise fee and other startup costs.