Cottage Inn Franchise FDD, Profits & Costs (2025)
Cottage Inn Pizza, established in 1948 in Ann Arbor, Michigan, is a family-owned and operated American pizza franchise specializing in gourmet pizzas, pasta, salads, and gluten-free options. The company began franchising in 1986 and has expanded to over 50 locations across Michigan and Ohio.
Cottage Inn differentiates itself by offering a diverse menu that includes more than 30 varieties of gourmet pizzas, as well as Italian and Greek dishes. Their commitment to quality ingredients and exceptional customer service has earned them a strong reputation in the Midwest.
The company continues to seek expansion opportunities, offering franchisees comprehensive training and ongoing support to ensure the success of each location.
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Initial Investment
How much does it cost to start a Cottage Inn franchise? It costs on average between $167,000 – $785,000 to start a Cottage Inn franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the size of the restaurant, the location, and whether the franchisee chooses to lease or purchase the property and equipment. Cottage Inn offers 3 types of franchises:
| Franchise Name | Initial Investment Range |
|---|---|
| Cottage Inn Pizza Express | $167,000 to $352,000 |
| Cottage Inn Pizza | $216,000 to $500,000 |
| Cottage Inn Pizza & Pub | $424,000 to $785,000 |
We are summarizing below the main costs associated with opening a Cottage Inn Pizza & Pub. For more information on costs required to start a Cottage Inn franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Approximate Amount |
|---|---|
| Initial Franchise Fee | $30,000 |
| Training Expenses | $10,000 to $20,000 |
| Opening Supply of Food Items, Employee Uniforms, and Paper Products | $20,000 to $40,000 |
| Equipment | $75,000 to $200,000 |
| Leasehold Improvements and Decorating | $100,000 to $200,000 |
| Signs | $20,000 to $30,000 |
| Grand Opening Advertising and Promotion | $10,000 |
| Prepaid Expenses | $25,000 to $30,000 |
| Three Months’ Rent | $9,000 to $15,000 |
| Beer and Wine License | $50,000 to $120,000 |
| Additional Funds – 3 months | $75,000 – $90,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $424,000 to $785,000 |
Average Revenue (AUV)
How much revenue can you make with a Cottage Inn franchise? A Cottage Inn franchised restaurant makes on average $811,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $970,000 yearly revenue for similar pizza franchises. Below are a few Cottage Inn competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Cottage Inn Franchise Disclosure Document
Frequently Asked Questions
How many Cottage Inn locations are there?
As of the latest data, Cottage Inn Pizza operates 54 locations, including both company-owned and franchise-owned units.
What is the total investment required to open a Cottage Inn franchise?
The total investment required to open a Cottage Inn franchise ranges from $167,000 to $785,000.
What are the ongoing fees for a Cottage Inn franchise?
For a Cottage Inn Pizza franchise, the ongoing fees include a royalty fee of 5% of gross sales, which is paid regularly to the franchisor.
In addition, franchisees are required to contribute to a marketing/advertising fee, which is typically 2% of gross sales. These fees support the brand’s national marketing campaigns and provide local marketing resources to help franchisees attract and retain customers.
What are the financial requirements to become a Cottage Inn franchisee?
To become a Cottage Inn Pizza franchisee, the financial requirements include a minimum net worth of $500,000 and liquid capital of at least $150,000. These requirements ensure that franchisees have the necessary financial resources to cover the initial investment, operational expenses, and sustain the business during its startup phase.
How much can a Cottage Inn franchise owner expect to earn?
The average gross sales for a Cottage Inn franchise are approximately $0.81 million per location. Assuming a 15% operating profit margin, $0.81 million yearly revenue can result in $122,000 EBITDA annually.
Who owns Cottage Inn?
Cottage Inn franchise is owned by the Cottage Inn Pizza company, a family-owned business that was founded in 1948 in Ann Arbor, Michigan. The company operates and manages the Cottage Inn brand and its franchise system.
Disclaimer
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