Little Caesars® International development agreements generally require a franchisee to build and operate a minimum number of restaurants in a particular geographic area within a specified time frame. This requires prospective franchisees to have a substantial net worth and readily available funds. We generally require a minimum US$2,000,000 net worth under our multi-unit development agreement with additional minimum requirements for liquid/cash assets. These minimums may vary depending upon the number of stores to be developed.
These are minimum requirements and do not represent the total potential costs to open and operate one or more Little Caesars units..
Paid at the signing of the Development Agreement, this secures the right to develop an entire country or a specific geographic area within a country. The fee is based upon, among other factors, the number of pizza stores agreed to in the growth plan, and market potential for the concept.
FRANCHISE (STORE OPENING) FEE
A franchise fee of US$20,000 for the first store and US$15,000 for each subsequent store is assessed as each individual store is opened in your market and is due and payable pursuant to the terms of the Agreement.
The standard royalty rate is six percent (6.0%) of gross sales and is payable pursuant to the terms of the Agreement.
A minimum rate of four percent (4.0%) of gross sales is to be spent on advertising. Little Caesars shall also have the right to initiate a global, regional, and/or national advertising fund.