MOD Pizza Franchise FDD, Profits, Costs & Fees (2024)
MOD Pizza was founded in 2008 in Seattle by Scott and Ally Svenson with a vision to reinvent how people enjoy pizza, focusing on speed, personal style, and value.
The franchise offers customizable, individual artisan-style pizzas and salads, allowing customers to choose from over 30 toppings for a single price.
Emphasizing a people-first approach, MOD Pizza’s culture revolves around taking care of employees, known as the “MOD Squad,” with the belief that a positive workplace leads to better customer service and community engagement.
MOD Pizza differentiates itself through its commitment to social impact and inclusivity, aiming to be a force for good in its communities.
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Initial Investment
How much does it cost to start a MOD Pizza franchise? It costs on average between $859,000 – $1,247,000 to start a MOD Pizza franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $30,000 – $30,000 |
| Leasehold Improvements | $426,000 – $575,000 |
| Training Costs | $5,000 – $18,000 |
| Furniture, Fixtures, Supplies, Décor and Equipment | $298,000 – $451,000 |
| Site Design, Architectural and Engineering Fees | $31,000 – $43,000 |
| Point-of-Sale and Computer System | $12,000 – $15,000 |
| Beer and Wine License Costs | $2,000 – $15,000 |
| Miscellaneous | $15,000 – $40,000 |
| Grand Opening Marketing | $10,000 – $10,000 |
| Additional Funds – 3 Months | $30,000 – $50,000 |
| Total | $859,000 – $1,247,000 |
Average Revenue (AUV)
How much revenue can you make with a MOD Pizza franchise? A MOD Pizza franchised restaurant makes on average $1,291,000 in revenue (AUV) per year.
This compares to $960,000 yearly revenue for similar pizza franchises. Below are 10 MOD Pizza competitors as a comparison:
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MOD Pizza Franchise Disclosure Document
Frequently Asked Questions
How many MOD Pizza locations are there?
As of the latest data, MOD Pizza has a total of 512 locations, out of which 89 are franchised and the remaining are company-owned.
What is the total investment required to open a MOD Pizza franchise?
The total investment required to open a MOD Pizza franchise ranges from $859,000 to $1,247,000.
What are the ongoing fees for a MOD Pizza franchise?
MOD Pizza franchisees pay a royalty fee of 5% of gross sales, which is paid weekly. This fee covers the use of the MOD Pizza brand, support, and access to the franchise system.
Additionally, franchisees are required to contribute 3% of their gross sales to the brand development fund, which is essentially the marketing fee
What are the financial requirements to become a MOD Pizza franchisee?
To become a MOD Pizza franchisee, the financial requirements include a minimum net worth of $3 million and liquid capital of at least $1 million.
These requirements ensure that potential franchisees have the necessary financial resources to support the investment and ongoing operations of the franchise.
How much can a MOD Pizza franchise owner expect to earn?
The average gross sales for a MOD Pizza franchise are approximately $1.29 million per location. Assuming a 15% operating profit margin, $1.29 million yearly revenue can result in $193,500 EBITDA annually.
Who owns MOD Pizza?
MOD Pizza is owned by its founders, Scott and Ally Svenson. They started the company in 2008 and have played a significant role in its growth and development. While they maintain ownership, MOD Pizza has also received investments from various private equity firms to support its expansion.
Disclaimer
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