Little Caesar’s Franchise Cost & Fees

SKU: dae2ef951721 Category: Tag:

Description

Year Business Began: 1959Franchising Since: 1962Headquarters: Detroit, MichiganEstimated Number of Units: 4,100Franchise Description: Little Caesar Enterprises, Inc. is the franchisor. Little Caesars restaurants feature pizza, chicken wings, Crazy Bread products and other related products. Little Caesars restaurants generally are carryout-only restaurants, sometimes with a drive-thru window. Some existing Little Caesars restaurants also offer delivery services. The franchisor may consider additional delivery options or, alternatively, it may require existing Little Caesars restaurants that deliver to cease delivery and become carryout only. The franchisor currently offers both single Little Caesars restaurant franchises and a territory reservation agreement that allows franchisees to reserve a territory for potential development of multiple Little Caesars restaurant franchises.Training Overview: Before opening the Restaurant, franchisees (or, if they are a corporation, limited liability company or other entity, the principal acceptable to the franchisor) must attend the training program. As of the date of this disclosure document, the franchisor requires only one person from each Restaurant to attend, and that person must be the franchisee or a principal acceptable to the franchisor, but it has the right to require the franchisee’s employees to attend. All trainees must complete the training program to the franchisor’s satisfaction. The training program lasts approximately 6 to 8 weeks. The length of the program may be changed at any time. The program includes a 2-day real estate/architectural/equipment training program that the franchisee’s trainees must complete to the franchisor’s satisfaction before it will allow them to attend the remainder of the pre-opening training program. The franchisor also offers food safety certification as part of the six-week initial training. The franchisor conducts initial training primarily at its headquarters and at company-owned Restaurants in Detroit, Michigan. Training will include classroom instruction and formal on-the-job training in certified training Restaurants. Franchisees or a principal or an individual they designate and the franchisor approves, at their expense, must attend all meetings, seminars and conferences the franchisor may specify as mandatory, including all regional and national meetings, all meetings related to new products or product preparation procedures, new System programs, new operations procedures or programs, training, restaurant management, financial management, sales or sales promotion, or similar topics and annual conferences.Territory Granted: The Franchise Agreement grants franchisees the right to operate the Restaurant only at the Approved Location. The Franchise Agreement typically defines a territory within which the franchisor will not establish or operate, or franchise any entity to establish or operate, a business using the Proprietary Marks and System. The Protected Territory is usually defined the as the territory within a 1 mile radius of the Approved Location. Under certain circumstances, however (e.g. the Restaurant will be located in a highly populated urban area), the Protected Territory may be reduced to a distance of ½ mile or less, or a Protected Territory won’t be granted. If the Approved Location is within any of the five boroughs of the City of New York, New York, the franchisor will not provide a Protected Territory.Obligations and Restrictions: The franchisor requires that the franchisee (or, if the franchisee is a business entity, a principal) or an individual approved by the franchisor devote his or her full time and best efforts to on-site management and operation of the Restaurant. If franchisees are granted franchises for more than one Restaurant, they must continue to personally supervise the operation of all their Restaurants. If the Restaurants are located in different market areas or if franchisees elect not to reside in the same geographic area as their Restaurants, the franchisor must approve their on-site operator(s), and it may require that they have a minimum equity interest in the entity that operates and/or owns the Restaurants they supervise. To ensure that the highest degree of quality and service is maintained, franchisees must operate the Restaurant in strict conformity with the methods, standards and specifications that the franchisor prescribes in the Operational Resource Guide or otherwise in writing.Term of Agreement and Renewal: The length of the initial franchise term is generally 10 years. There is generally one renewal term of 10 years from the initial term. All renewals are subject to contractual requirements.Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $15,000 $20,000 (regular fee) Rent $1,500 $7,000 Leasehold Improvements $50,000 $750,000 Fixtures, Equipment and Signage $186,000 $392,000 Grand Opening Advertising $12,000 $20,000 Training Expenses $8,000 $11,000 Start-up Inventory and Supplies $63,000 $154,000 Insurance $500 $1,500 Utility Expenses $1,000 $5,000 Licenses and Permits $1,000 $20,000 Additional Funds – 3 months $17,000 $47,000 Estimated Total $355,000 $1,427,500 Other Fees Type of Fee Amount Royalty The greater of 6% of Gross Sales for each one-week period or $100 for each one-week period. Advertising Fee Up to 7% of Gross Sales, as determined by the franchisor. Blue Line Purchases Varies. Caesar Vision System Annual Support Fee $1,500 to $5,000 per year per Restaurant in which Caesar Vision has been installed, if at least one SME for every 7 installed Restaurants.$3,000 to $10,000 per year per installed Restaurant, if fewer than one SME for every 7 installed Restaurants or if the SME fails to attend required training sessions. Mobile Transactions Fee Up to $0.30 per transaction Per diem for onsite Caesar Vison support $1,500 per day per technician, plus travel expenses. M.I.K.E System Connection Fee To be determined. Audit by Franchisor The franchisor’s actual costs of audit (travel, lodging, wage expenses, and accounting and legal costs) Additional Training Not more than $250 per attendee for initial training of additional employees. Transfer Fee Varies from $0 to $5,000 per restaurant. Renewal Fee $5,000 Indemnification Will vary with circumstances. Special Marketing, Management, and Operational Assistance Performed at Franchisee’s Request Reasonable fee plus expenses. Private Securities Offering $25,000 plus additional sums to cover the franchisor’s out-of-pocket costs to review the materials if greater than $25,000 Relocation Fee $2,500 Interest 18% per year or the maximum rate permitted by law, whichever is less. Late Fee Franchisor’s then-current late fee. Missed Meeting Fee Varies. Manual Update or Replacement Fee Franchisor’s then-current fee. Management Fee Commercially reasonable fee. Liquidated Damages Upon Termination for Franchisee’s Default Calculated according to formula in FDD. Liquidated Damages – Failure to Comply with Post-Termination Obligations $250 per day. Costs and Legal Fees Franchisor’s actual costs. The above information has been taken from the FDD of Little Caesars. Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
Royalty The greater of 6% of Gross Sales for each one-week period or $100 for each one-week period.
Advertising Fee Up to 7% of Gross Sales, as determined by the franchisor.
Blue Line Purchases Varies.
Caesar Vision System Annual Support Fee

$1,500 to $5,000 per year per Restaurant in which Caesar Vision has been installed, if at least one SME for every 7 installed Restaurants.

$3,000 to $10,000 per year per installed Restaurant, if fewer than one SME for every 7 installed Restaurants or if the SME fails to attend required training sessions.

Mobile Transactions Fee Up to $0.30 per transaction
Per diem for onsite Caesar Vison support $1,500 per day per technician, plus travel expenses.
M.I.K.E System Connection Fee To be determined.
Audit by Franchisor The franchisor’s actual costs of audit (travel, lodging, wage expenses, and accounting and legal costs)
Additional Training Not more than $250 per attendee for initial training of additional employees.
Transfer Fee Varies from $0 to $5,000 per restaurant.
Renewal Fee $5,000
Indemnification Will vary with circumstances.
Special Marketing, Management, and Operational Assistance Performed at Franchisee’s Request Reasonable fee plus expenses.
Private Securities Offering $25,000 plus additional sums to cover the franchisor’s out-of-pocket costs to review the materials if greater than $25,000
Relocation Fee $2,500
Interest 18% per year or the maximum rate permitted by law, whichever is less.
Late Fee Franchisor’s then-current late fee.
Missed Meeting Fee Varies.
Manual Update or Replacement Fee Franchisor’s then-current fee.
Management Fee Commercially reasonable fee.
Liquidated Damages Upon Termination for Franchisee’s Default Calculated according to formula in FDD.
Liquidated Damages – Failure to Comply with Post-Termination Obligations $250 per day.
Costs and Legal Fees Franchisor’s actual costs.