Little Caesars is one of the most popular pizza chains in the United States and has been for many years. It’s known for its delicious pizza, convenient locations, and affordable prices.
Opening a Little Caesars franchise could be an excellent option for entrepreneurs looking to get into the food industry. It is one of the Best franchises of 2023 that you must own.
If you have experience managing restaurants or retail stores, you may have all the skills needed to run a successful Little Caesars franchise.
In this article, we’ll cover everything you need to know about opening a Little Caesars franchise, including the costs involved, the requirements for owning one, and more.
About Little Caesars Franchise
Little Caesars is an iconic pizza brand that has been an American favorite since it was established in 1959.
It is the third-largest pizza chain in the US in terms of total sales, only behind Domino’s and Pizza Hut.
Little Caesars is known for its “Hot-N-Ready” pizzas, which are completed and ready for customers to take home from the store without needing to wait.
This concept was created by Little Caesars in 1979 and has since become a major part of the company’s success.
These pizzas are made with high-quality ingredients like 100% real mozzarella cheese and signature sauces, making them a favorite among customers.
The chain also offers a variety of other menu items, including wings, desserts, Italian Cheese Bread, and Caesar dip.
The chain prides itself on providing top-quality food that customers can enjoy without breaking the bank.
They consistently offer specials and promotions, making it easy for people to get great value while dining out or ordering in.
As a Little Caesars franchisee, you will benefit from the company’s decades-long reputation for quality and value.
You will also be able to leverage the chain’s extensive marketing resources, which include television campaigns and in-store signage.
Little Caesars Franchise History
Little Caesars’ history began in 1959 when married couple Mike and Marian Ilitch opened the first store in Garden City, Michigan.
The store was named ‘Little Caesar’s Pizza Treat.’ The couple went on to create their first franchise location two years later in Warren, Michigan.
In 1969, they expanded into Canada, becoming an international brand. Little Caesars’ rapid growth continued, and by 1987, it had restaurants in all 50 states of the United States.
Today, Little Caesars is one of the largest pizza chains in the world, with more than 5,463 locations across 50 states and 25 international markets.
It has become a favorite among pizza lovers for its delicious food, convenient locations, and affordable prices.
Little Caesars also offers a variety of menu items aside from pizza, such as wings, desserts, Italian Cheese Bread, and Caesar dip.
Due to its decades-long reputation for quality and value coupled with extensive marketing resources such as television campaigns and in-store signage, Little Caesars remains one of America’s most popular pizza chains today.
Franchise Model Table
| Initial Investment | $350,000–$1,427,500 |
| Franchise | YES |
| Franchise Fee | $20,000 |
| Royalty Fee | 6% |
| Liquidity | $150,000 |
| Estimated Outlets | 5,463+ |
How Much Does It Cost To Open a Little Caesars Franchise?
The cost of opening a Little Caesars franchise can vary greatly depending on the size and location of the store, but the total investment typically ranges from $350,000 to $1,427,500.
This includes a franchise fee of $20,000 plus other costs such as real estate, construction, equipment, and inventory.
In addition to the total investment cost, potential franchisees will also be expected to have certain net worth and liquid asset requirements.
The minimum net worth requirement is $350,000, and the liquid asset requirement is $150,000.
Little Caesars also charges a 6% royalty fee on all sales as well as an additional 7% advertising contribution every month.
These fees are used to support the company’s national advertising campaigns so that your store can benefit from being part of a larger brand presence in its markets.
In exchange for your investment and ongoing contributions, you’ll be able to take advantage of many benefits offered by the Little Caesars franchise system, such as business planning resources, comprehensive training programs for both you and your staff members, assistance with store layout and design decisions, marketing materials, and more.
Little Caesars Franchise Requirements
Little Caesars franchises have certain requirements that potential franchisees must meet in order to be considered for the opportunity.
The most basic qualifications are a net worth of $350,000 and liquid assets of $150,000.
This ensures that you have the necessary financial resources to open and operate a successful restaurant.
In addition, it is expected that potential franchisees have basic business skills, experience in managing people, and knowledge of the restaurant industry.
A proven track record of success in the restaurant business is a plus, although not required.
The size of the space needed to open a Little Caesars location also varies depending on whether it is a traditional or non-traditional model.
For traditional stores, 1,400–1,600 square feet is typically required, while non-traditional stores can range from 470–1,399 square feet. This includes space for seating, which is not necessary for non-traditional locations.
Finally, potential franchisees should be aware that they will need to commit time and resources to the success of their business.
This means having dedicated staff who are willing and able to take on shift work and provide outstanding service to customers every day.
In addition, it is essential that franchise owners stay up-to-date with industry trends and continually look for ways to improve their operations and offer customers new products or services.
Little Caesars Franchise Training And Support
Little Caesars offers a comprehensive and rigorous 8-week in-store operations training program to help franchise owners get their stores up and running.
This program includes 64 hours of classroom instruction as well as 250 hours of on-the-job training.
Before beginning the 8-week program, franchisees must attend a Discovery Day and interview with franchise development personnel, which combined takes around 6 hours.
Additionally, they must undergo real estate, architectural, and equipment training for an additional 12 hours.
This extensive training covers all aspects of operating a Little Caesars location, ranging from food safety and customer service protocols to operational processes like recipe adherence and product quality assurance.
Franchisees also gain an understanding of the company’s corporate culture, brand standards, and strategic objectives.
In addition to the pre-launch training program, Little Caesars provides ongoing support throughout the franchisee’s tenure.
This includes assistance with marketing initiatives, access to digital tools such as order tracking systems, personnel support for recruiting and hiring staff members, assistance with annual budgeting, financial analysis, and performance coaching for store managers and more.
Little Caesars Franchise Terms Of Agreement & Renewal
Little Caesars has a standard 10-year initial term for its franchises but offers the option to renew the agreement for an additional 10-year period upon meeting certain requirements.
To be eligible for renewal, the franchisee must have operated their business in accordance with Little Caesars’ standards and have fulfilled their obligations under the terms of the agreement. The renewal fee is $5,000, which is due before the renewal term begins.
Little Caesars Franchise Obligations And Restrictions
All Little Caesars franchise owners are required to adhere to the highest standards of business conduct and operations.
This includes upholding the company’s brand identity, maintaining a clean and safe restaurant environment, offering quality food products at reasonable prices, responding promptly to customer inquiries and complaints, employing only qualified personnel, and adhering to legal regulations governing the operation of restaurants.
Franchisees are also expected to follow all operational processes as prescribed by Little Caesars, such as product ordering procedures and menu item pricing guidelines.
In addition, they must only sell approved products in their restaurants and not engage in any activities that could damage the company’s reputation or goodwill.
Little Caesars Franchise Financial Assistance
Little Caesars does not offer direct or indirect financing to potential franchisees, nor does it guarantee notes, leases, or other obligations.
However, the company offers discounts to veterans and first responders who wish to become franchise owners.
The discounts range from a 5-15% reduction in the initial franchise fee, depending on the individual’s status.
In addition to these discounts, Little Caesars provides resources and support for new franchise owners throughout their tenure with the company.
These include access to digital tools such as order tracking systems, personnel support for recruiting and hiring staff members, and more.
Little Caesar Comparison
| Company | Little Caesar | Papa John’s |
|---|---|---|
| Founded In | 1959 | 1984 |
| Initial Investment | $350,000-$1,427,500 | $130,120 – $844,420 |
| Franchise-Fee | $20,000 | $25,000 |
| Total Outlet | 5,360 | 4,456 |
| Annual Revenue | $3.85 Billion | $2.1 Billion |
Conclusion
With over 5,463 locations worldwide, Little Caesars is one of the most successful pizza franchises in the world.
The iconic pizza chain offers prospective franchisees the opportunity to own their own business with an affordable startup cost and extensive support throughout their tenure.
Now that you know a bit more about the Little Caesars franchise, you can make an informed decision on whether this is the right business opportunity for you.
However, it’s also important to know how much a Little Caesars franchise owner makes. This will allow you to make informed decisions on the franchise.
Frequently Asked Questions
What else can the franchisee be asked to do?
A franchisee has asked about the in-depth knowledge of the local culture and commerce in the intended area.
Is Little Caesars a franchise?
Yes, Little Caesars is a franchise organization, and now it has a comprehensive market of 6000 locations worldwide, of which 90% are franchised.
How much does a Little Caesars Franchise Cost?
To become an owner of the Little Caesars franchise, investors should expect to spend around $350,000-$1,427,500 and an additional $20,000 as a franchise fee.
Who is the owner of Little Caesars?
Mike and Marian Ilitch own little Caesars. The couple founded the pizza chain in 1959 with a single store in Garden City, Michigan.
Today, Little Caesars operates over 5,000 locations worldwide and remains family-owned and operated under the Ilitches’ private holding company, Ilitch Holdings, Inc.
How Many Little Caesars Locations Are There?
As of 2023, there are over 5,463 Little Caesars locations worldwide.
Is Opening A Little Caesars Franchise A Good Investment?
Yes, opening a Little Caesars franchise can be a good investment for qualified individuals.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.