Here's How Much It Really Costs To Open A Pizza Hut Franchise
Two brothers opened the first Pizza Hut in 1958. The company, now owned by YUM! Brands, currently boasts more than 16,000 stores in more than 100 countries (via Pizza Hut). According to PMQ Pizza Magazine, there are nearly 7,500 Pizza Hut locations in the U.S., which brought in almost $6 billion in 2019. Pizza Hut currently ranks second in sales to Domino's.
Whenever a company is a leader in its industry, there will be, unsurprisingly, added interest in owning a franchise. Becoming a franchisee with Pizza Hut, however, is a multi-step process, beginning with an online application that inquires about your net worth, liquid assets, and relevant experience. Next steps involve disclosure documents, asset verification, background checks, and interviews. Pizza Hut is most interested in multi-unit operators, and currently has 20 multi-unit opportunities available (via Pizza Hut). So, how much would it actually cost to open your own Pizza Hut franchise, if you're financially ready?
Pizza Hut's franchise fees
The initial franchise fee to open a Pizza Hut is $25,000. However, the estimated total cost of investment, including equipment, computer systems, smallwares, a building, etc., can range between $367,000 and $2,063,500, according to Franchise Direct. This cost does not include monthly service fees, technology fees, training fees, and more. There's a lending assistance program in place for minorities and qualified former employees who are interested in franchising. The assistance equates to 25 percent off the principal of the business loan.
Remember those net worth and liquid asset requirements? According to Entrepreneur, the net worth that Pizza Hut requires from its franchisees is $700,000, and liquid assets should be $350,000. Want to jump right into running your new business? Not so fast. Entrepreneur notes that there are 43 to 65 hours of classroom training, and another 320 to 480 hours of on-the-job training before Pizza Hut hands over the keys to the kingdom.