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Pizza Factory: a Profitable Franchise With a $732K Turnover

If you’re considering opening a pizza franchise, there are lots of options to consider. Among all of them, a few stand out, and Pizza Factory is one of them. And for a good reason: Pizza Factory is an incredibly profitable franchise.

Indeed, you would need to invest (only) $416,000 (with loans or investors) and you would be able to repay (on average), within 3.8 years, which is excellent.

Want to know how much profits you can make with a Pizza Factory? In this article we’ll look at everything you should know about Pizza Factory and its financials from the angle of its Franchise Disclosure Document. Let’s dive in!

Pizza Factory franchises: key figures

Franchise fee$17,500
Royalty fee5.0%
Marketing fee3.0%
Investment (mid-point)$417,000
Average sales$733,000
Sales to investment ratio1.8x
Payback period*4 years
Minimum net worth$150,000
Minimum liquid capital$65,000
* using 15% net profit margin
Pizza Factory business plan template

Download the Pizza Factory franchise business plan

📗 Updated with Franchise Disclosure Document

📊 5-year pro forma financial model

📞 Free support

What is Pizza Factory?

Pizza Factory is an American pizza restaurant chain based in Oakhurst, California.

It was founded by Danny Wheeler and his wife Carol in 1978 in Oakhurst as Danny’s Red Devil Pizza before Ron Willey and his wife Joyce opened a second restaurant and named it Pizza Factory in 1981.

In addition to pizza, the chain offers appetizers, side sauces, wings, salads, sandwiches, and pasta.Pizza Factory began franchising in 1985 and today has more than 100 restaurants in the US.

Pizza Factory franchises pros and cons


  • Pre-opening training: The brand offers its franchisees comprehensive initial classroom and on-site training. It trains franchisees about the business concept, customer service, restaurant management, and operational procedures necessary to carry out a successful grand opening and succeed in the business.
  • Flexible formats: The brand utilizes different franchise formats to help franchisees operate a restaurant that fits into the available real estate opportunities. Franchisees can choose between quick-serve and fast-casual options. In addition, the brand has introduced the Express model to enhance the carryout and delivery system, making use of a sleek design to save on operations, staff, and FF&E expenses.
  • In-house financing: Pizza Factory provides in-house financing to franchisees to fund payroll costs. It also offers third-party financing for the franchise fee, startup costs, equipment, inventory, and accounts receivable.
  • Absentee ownership: The brand provides a passive business ownership opportunity. Franchisees can operate the franchise as they pursue other obligations.
  • Exclusive territory protection: The brand grants the franchisees the right to operate their restaurants in a fixed-size area defined in the franchise agreement. The brand may not license any other franchise or operate a competing restaurant within the protected area.


  • Not a part-time business: The franchise does not present a part-time business opportunity. Franchisees need to be open as per the franchisor’s stated hours.
  • Competition: A Pizza Factory franchise faces competition from brands such as Pizza Hut, Domino’s, Little Caesar’s, Papa Murphy’s, Blaze Pizza, etc.
  • Not a mobile business: Pizza Factory is not a home-based business. Franchisees are required to have office facilities for running their restaurants.

How much do Pizza Factory franchises cost?

You have to invest around $416,500 to open a Pizza Factory franchise restaurant.

This is an average; indeed, it varies based on many factors, such as the location of your restaurant, its size, age, and type of construction of the building.

In addition to the initial franchise fee that you must pay to the franchisor, you would also pay for the furniture and fixtures, signage, equipment, etc.

Pizza Factory startup costs

Here’s the full breakdown of costs:

Initial franchise fees$15,000-$20,000
Real estate and improvements$91,000-$250,000
Equipment and fixtures$97,000-$155,000
Additional funds -3 months$35,000-$60,000
Source: Franchise Disclosure Document (2021)
Pizza Factory business plan template

Download the Pizza Factory franchise business plan

📗 Updated with Franchise Disclosure Document

📊 5-year pro forma financial model

📞 Free support

What’s the turnover of a Pizza Factory franchise?

On average, a Pizza Factory franchise makes $732,627 in sales per year.

This is the average sales per restaurant for the 90 of the 96 franchised restaurants operating in all of 2020. This is a slight increase of 2.0% year-on-year vs. 2019 ($718,250, 94 units).

How profitable is a Pizza Factory franchise?

On average, a Pizza Factory franchise makes $258,617 in profits per year. This corresponds to a 35% profit margin (adjusted EBITDA margin).

The Pizza Factory is a profitable franchise. Indeed, we found that the 35% profit margin is higher than the average for similar restaurant franchises (25-27%).

We calculated this number using the information available in the Franchise Disclosure Document 2021. Fortunately, unlike most other franchises, Pizza Factory does provide detailed information on the cost structure of its franchised-owned restaurants.

Profit and lossAmount% of sales
Royalty + marketing fees($58,610)8.0%
Adjusted EBITDA$258,617~35.0%
Source: Franchise Disclosure Document (2021)

Should you invest in a Pizza Factory franchise?

So should you invest in a Pizza Factory franchise? Are the profits worth the upfront cost?

Well it does seem so. Indeed, even if we were to assume a 15% net profit margin, we obtain a payback period of 3.8 years for Pizza Factory. This is an excellent payback period: any payback below 5 years is very good for restaurant franchises.

In other words, you would wait only 4 years to repay creditors (loans) and potential external investors as well as your own investment. After that, you can reap the profits of your franchise!

Pizza Factory business plan template

Download the Pizza Factory franchise business plan

📗 Updated with Franchise Disclosure Document

📊 5-year pro forma financial model

📞 Free support

How does it compare vs. other franchises?

FranchiseInvestment ($)Sales ($)Payback (years)Min. net worth ($)Min. liquid capital ($)
Dunkin' Donuts,0001,056,5211.44.9500,000250,000
Krispy Kreme,0003,400,0004.11.62,000,000300,000
Little Caesars,022,850798,1130.88.5350,000150,000
Steak 'n Shake, Milshakes815,6261,346,3321.74.01,500,000500,000
Crumbl Cookies,2241,582,0903.12.1300,000150,000
Taco Bell,4131,650,0003.61.91,500,000750,000
Smoothie King,108573,2690.88.0300,000100,000
Jersey Mike's,3231,220,5862.14.7300,000100,000
Nothing Bundt Cakes,6501,307,2802.42.7600,000150,000
Jimmy John's,650874,8451.73.9300,00080,000
Texas Roadhouse,209,5002,955,5340.79.5n.a.200,000
Kung Fu Tea tea250,125353,2371.44.7n.a.25,000
Burger King,242,9501,215,9701.06.81,500,000500,000
Sonic Drive-In,467,0831,617,0001.16.01,000,000500,000
Panera Bread,290,5002,599,4321.15.97,500,0003,000,000
Pizza Hut,575906,9111.06.9700,000350,000
Dairy Queen Cream1,404,2201,143,1800.88.2750,000400,000
Jack in the Box,195,8001,755,5030.812.51,000,000250,000
Papa John’s,6951,101,1273.12.1750,000250,000
Five Guys,2251,203,3662.42.8500,000250,000
Carl’s Jr.,860,3351,419,5160.88.71,000,000500,000
Baskin-Robbins Cream465,100316,8150.79.8250,000125,000
Applebee’s American5,137,9662,356,9650.514.51,000,000500,000
Denny's American3,785,4591,639,5490.415.41,000,000500,000
Papa Murphy's,174580,4411.35.0275,000125,000
Auntie Anne's,692343,1351.55.6300,000100,000
Firehouse Subs,186888,3561.44.6350,000100,000
Tropical Smoothie Cafe,500961,9692.23.0350,000125,000
Marco’s Pizza,625895,5232.03.3400,000100,000
Cold Stone Creamery Cream310,956417,5881.35.0250,000100,000
Church’s Chicken,195,1471,395,0881.25.71,000,000300,000
Moe’s Southwest Grill,3701,013,3611.35.21,000,000100,000
Tim Hortons,242,7501,188,2401.07.0500,000100,000
Checkers & Rally's,8471,039,7731.25.4750,000250,000
Charleys Philly Steaks,806786,2331.54.3500,000100,000
Buffalo Wild Wings,546,9002,534,1480.79.31,500,000750,000
Rita's Ice Cream215,839248,3401.25.8300,000100,000
A&W Restaurants,750851,2121.16.2350,000150,000
Hungry Howie’s Pizza,682806,8991.93.5750,000200,000
McAlister’s Deli,424,9631,865,8611.35.11,000,000500,000
Round Table Pizza,2501,037,8161.35.0500,000200,000
Qdoba Mexican Eats,250972,9621.54.5
Taco John’s,119,0001,124,9801.06.61,000,000400,000
Scooter’s Coffee,143,250797,1010.79.6500,000200,000
Einstein Bros. Bagels,075885,0111.25.71,000,000536,500
Great American Cookies,275452,7711.25.7250,000100,000
Wienerschnitzel dogs873,300880,9801.06.6600,000250,000
Blaze Pizza,4501,096,4321.37.9500,000300,000
Wetzel's Pretzels,571748,8572.03.4300,00050,000
Pizza Ranch,268,3001,174,0880.418.61,000,000297,000
Del Taco,406,8501,345,3411.07.02,000,000500,000
Schlotzsky’s, Salads1,102,9331,053,3330.322.21,000,000300,000
Captain D’s,7781,067,8160.419.01,000,000350,000
Biggby Coffee,575648,3520.320.0300,000100,000
Which Wich,375281,8860.322.2500,000150,000
Marble Slab Creamery Cream407,360251,0520.416.7250,000100,000
Mountain Mike's Pizza,900865,7130.320.0300,000100,000
Huddle House,743712,4280.513.3600,000300,000
L&L Hawaiian Barbecue,350612,9210.333.3500,000150,000
Chicken Salad Chick, Salads651,0001,202,0200.320.0750,000250,000
Golden Chick,975917,6092.52.62,000,000425,000
Waba Grill,000466,5361.06.51,000,000250,000
Bruster’s Ice Cream Cream663,925466,6960.79.5375,000150,000