Pizza Ranch Franchise FDD, Profits & Costs (2025)
Pizza Ranch, a beloved Midwestern restaurant chain, was founded in 1981 by Adrie Groeneweg in Hull, Iowa. The inspiration for Pizza Ranch came when Groeneweg noticed that local residents had to travel to neighboring towns for good pizza.
With his mother’s six specialty pizza recipes, he opened the first Pizza Ranch to provide his community with a local pizza option. The concept quickly gained popularity, leading to the opening of the first franchise location in 1984.
Headquartered in Orange City, Iowa, has grown to over 210 locations across 14 states. The franchise is renowned for its “Buffet Your Way” concept, offering an all-you-can-eat buffet that includes a variety of pizzas, crispy chicken, fresh salads, and delectable desserts.
The unique buffet style, combined with the restaurant’s commitment to community involvement and family-friendly atmosphere, sets Pizza Ranch apart from other pizza chains.
Initial Investment
How much does it cost to start a Pizza Ranch franchise? It costs on average between $2,102,000 – $4,910,000 to start a Pizza Ranch 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. Pizza Ranch offers 2 types of franchises:
| Type of Pizza Ranch Franchise | Initial Investment |
|---|---|
| Pizza Ranch® (if you lease or remodel your Restaurant) | $2,101,500 to $2,962,000 |
| Pizza Ranch® (if you build a new Restaurant) | $3,151,500 to $4,909,500 |
We are summarizing below the main costs associated with opening a new Pizza Ranch franchised restaurant. For more information on costs required to start a Pizza Ranch franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount (Low to High) |
|---|---|
| Franchise Fee | $30,000 to $30,000 |
| Furniture, Fixtures & Equipment | $493,000 to $700,000 |
| Arcade Games | $378,000 to $550,000 |
| Construction Costs | $2,000,000 to $2,400,000 |
| Architect/Engineering Fees | $110,000 to $130,000 |
| Land | $0 to $800,000 |
| Pre-Opening Training Expenses | $80,000 to $137,000 |
| Food Used During Team Member Training | $7,000 to $9,000 |
| Start-Up Costs | $23,500 to $43,500 |
| Interest on Pre-Opening Loans | $10,000 to $90,000 |
| Working Capital (3 months) | $20,000 to $20,000 |
| Total Initial Investment (with a FunZone) | $3,151,500 to $4,909,500 |
Average Revenue (AUV)
How much revenue can you make with a Pizza Ranch franchise? A Pizza Ranch franchised restaurant makes on average $2,063,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $958,000 yearly revenue for similar pizza franchises.
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Pizza Ranch locations are there?
As of the latest data, Pizza Ranch operates 218 locations across the United States. The majority of these locations are franchise-owned, with only a small number being company-operated. Specifically, around 212 units are franchised, while about 6 are company-owned.
What is the total investment required to open a Pizza Ranch franchise?
The total investment required to open a Pizza Ranch franchise ranges from $2,102,000 to $4,910,000.
What are the ongoing fees for a Pizza Ranch franchise?
Pizza Ranch franchisees pay a 4% royalty fee on gross sales for ongoing support and brand maintenance. They also contribute a 2% marketing fee to a fund dedicated to regional and national advertising efforts, promoting brand awareness across all locations.
What are the financial requirements to become a Pizza Ranch franchisee?
To open a Pizza Ranch franchise, applicants need a minimum net worth of $1 million and at least $500,000 in liquid capital. These financial thresholds ensure franchisees have the resources to support startup costs and ongoing operations.
How much can a Pizza Ranch franchise owner expect to earn?
The average gross sales for a Pizza Ranch franchise are approximately $2.06 million per location. Assuming a 15% operating profit margin, $2.06 million yearly revenue can result in $309,000 EBITDA annually.
Who owns Pizza Ranch?
Pizza Ranch is privately owned by its founder, Adrie Groeneweg, who started the company in 1981 in Hull, Iowa. Groeneweg remains actively involved as CEO, steering the brand as it expands across the Midwest and beyond.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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