Have you ever wondered how much a Little Caesars Royalty fee is? If so, you’re going to enjoy this article. We will inform you of everything you need to know about this company’s franchise.
You will also learn who owns Little Caesars, how to get a Little Caesars franchise, Little Caesar’s franchise fees, and so on.
So, if you want to open a Little Caesars franchise this year, this guide is for you.
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Article Road Map
- Little Caesars Royalty fee ($100/week)
- Little Caesars Initial Franchise Fee ($20,000)
- Blue Line Franchise Pre-Opening Purchases ($63,000 – $154,000)
- Annual Support Fee for the Little Caesars Vision System ($1500/year)
- Training Fee for Little Caesars ($250)
- Reservation Fee for the Territory ($5000)
- Renewal Fee for a Little Caesars Franchise ($5000)
- Damages in Liquidation Fee for Noncompliance with Post-Termination Obligations ($250/day)
- Advertising Fee:
- Private Securities Offering:
- Is Little Caesars a Franchise?
- What is The Cost of a Little Caesars franchise?
- Relocation Fee for a Little Caesars Franchise ($2500)
Little Caesars Royalty fee ($100/week)
You can choose to pay Little Caesars royalty fee of more than 6% of your gross sales per week or a cost of $100 per week.
They mean the following when they say “gross sales”:
Your restaurant’s total revenue from product and service sales, as well as all other income. This includes revenue generated from selling products and services to customers off-premises, whether for cash or credit.
However, gross sales do not include customer refunds, certain types of credits, sales taxes added to the selling price and specifically permitted discounts. I hope this answers your questions on the cost of Little Caesar’s royalty fee.
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Little Caesars Initial Franchise Fee ($20,000)
The standard initial Little Caesars franchise fee is $20,000; however, the company will reduce this fee for existing franchisees in certain circumstances.
If you want to open your first Little Caesars restaurant, you must pay a $20,000 franchise fee. However, suppose you are an existing franchisee looking to purchase another franchise under the same franchise number. In that case, you may be eligible for a $5000 discount, leaving you with a $15,000 initial franchise fee.
In addition, if you are an existing franchisee who signs a new franchise agreement after your original contract has expired, you will be required to pay a $15,000 initial Little Caesars franchise fee.
While new franchisees looking to sign a new franchise agreement with a higher royalty rate than in the original agreement, with ownership still intact from the beginning of the original contract, will be required to pay a $10,000 initial franchise fee.
It is also worth noting that the initial franchise fee is non-refundable. There is an option for new franchisees to pay a non-refundable $5000 initial franchise fee within 30 days of the company’s approval of your franchise.
The balance of the fee is due when you sign the Little Caesars franchise agreement or when the company approves the location of your proposed restaurant.
This initial franchise fee is also reduced by $5,000 for US military veterans.
Little Caesars will also give you a $5000 credit toward your 1st restaurant’s expenditures from Blue Line.
However, if you are a service-disabled veteran, you will be eligible for a $10,000 Blue Line credit.
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Blue Line Franchise Pre-Opening Purchases ($63,000 – $154,000)
To open a new Little Caesars restaurant, franchisees must purchase goods from Blue Line in addition to the initial franchise fee.
It is important to note that payments for these items are non-refundable.
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Annual Support Fee for the Little Caesars Vision System ($1500/year)
This fee is due each year in January.
It should be noted that this fee is not currently mandatory, but there is no guarantee that the company will not decide to make it compulsory at some point in the future.
The fee is $1500 per year for each restaurant where the Caesar Vision system is installed.
Training Fee for Little Caesars ($250)
An initial Little Caesars franchisee training does not cost more than $250 per attendee.
Reservation Fee for the Territory ($5000)
If you decide to sign a Territory Reservation Agreement with the company, you must pay a $5000 Territory Reservation fee per restaurant.
Little Caesars may choose to offer you a lower amount; it is entirely up to them.
Renewal Fee for a Little Caesars Franchise ($5000)
This fee is due when you sign your Franchise Agreement and Renewal Agreement.
Damages in Liquidation Fee for Noncompliance with Post-Termination Obligations ($250/day)
When this fee is incurred, it must be paid.
This fee is incurred when you fail to renew your Little Caesar franchise agreement upon its expiration or termination.
When your franchise agreement expires or is terminated, the company may withdraw up to $10,000 from your bank account to cover potential liquidated damages.
This portion of the $10,000 will be refunded upon completion of the restaurant’s de-identification, assuming there is any leftover.
If the $10,000 withdrawn from you is insufficient to meet your obligations, the company will invoice you for the difference.
Little Caesars divides your total advertising obligation into contributions to the Caesar Fund, contributions to an advertising cooperative (if applicable), and expenditures on local advertising. A fee of $100 per week.
Private Securities Offering:
$25,000, plus any additional sums required to cover Little Caesar’s out-of-pocket costs for reviewing the materials if they exceed $25,000
When offering materials are submitted to Little Caesars for review if greater than $25,000 when incurred.
Before making a private offering of securities, you must first obtain approval from Little Caesars. All such offers are subject to the company’s right of first refusal.
The Franchise Agreement forbids you from making public offerings of your securities.
Is Little Caesars a Franchise?
Little Caesars is the third-largest carryout-only pizza chain in the United States and one of the world’s most well-known franchises.
Michael Ilitch Sr. and his wife Marian Ilitch founded the company in 1959 as a single store in metro Detroit.
Little Caesars opened its first franchise in 1962 and now has 50 locations in the United States.
The franchise is currently available in Costa Rica, Canada, the Dominican Republic, Honduras, Panama, Nicaragua, Mexico, Peru, El Salvador, the Philippines, India, Jamaica, Singapore, Jordan, Bahrain, Turkey, Egypt, Australia, Barbados, Chile, Guatemala, Trinidad and Tobago, the Bahamas, and Saudi Arabia.
Little Caesars is presently owned by Ilitch Holdings, overseen by David Scrivano as President and CEO and Ed Gleich as CIO.
The company primarily sells chicken wings, crazy bread, and pizzas.
What is The Cost of a Little Caesars franchise?
Little Caesars estimates that the cost of starting a franchise with them ranges from $193,050 to $619,500.
In addition, an aspiring franchisee must have a net worth of $150,000, at least $50,000 in cash, and the ability to obtain financing to cover the remaining costs.
If you want to open a Little Caesars franchise, you should think about these significant fees and costs.
Relocation Fee for a Little Caesars Franchise ($2500)
Little Caesars will only expect you to relocate your restaurant if they allow it. The new location must be within a one-mile radius of your previous location, with the new restaurant opening within six months of the closure of your previous site.
However, this relocation fee is only refundable if the company declines your request.
The relocation fee for a Little Caesar’s franchise is $2500, which must be paid after submitting your relocation request.