Pizza Hut Franchise

Pizza Hut, a Yum! Brands franchise, has been franchising since 1959 - 1 years after the concept was founded in 1958 , currently with 18,381 total locations (17,673 franchised, 708 company-owned, a 96% franchise-to-corporate ratio that signals the operator's reliance on independent owners) in the food & beverage sector, headquartered in TX. The 2024 FDD lists a total initial investment between $367K and $1.8M, with the 396% low-to-high spread driven mainly by site size, market, and how extensive the buildout runs. Included in that number: the franchise fee of $25K, equipment, leasehold improvements, and initial working capital to carry the business through ramp-up.

Ongoing royalties run 6.0% of gross sales with an additional 4.3% national advertising fund contribution, bringing the combined ongoing cost to 10.3% of every dollar in sales. Worth noting: Pizza Hut is among the roughly one-third of U.S. franchisors that voluntarily disclose financial performance data in Item 19. The reported average gross revenue per location is $1.1M, which works out to about $66K in annual royalty for a typical unit. Treat revenue and profit as separate questions: rent, labor, cost of goods, and local demand all determine what a franchisee actually keeps.

Pizza Hut's footprint shrank over the past year, down 0.8% with 550 closures on the record. A shrinking network deserves a closer look -- causes range from market saturation and weak unit economics to franchisee disputes or a deliberate cull of underperforming stores. Ask Item 20 contacts directly why locations closed.