Pizza Hut Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$25,000
Investment required
$412,000 - $2,054,000
Royalty fee
6% to 6.5%

Pizza Hut: Revolutionizing the Pizza Experience Globally

Pizza Hut, an esteemed American multinational restaurant chain, provides a versatile dining experience through its delivery, take-out, and dine-in services.

Known for its diverse selection of pizzas, Pizza Hut also delights customers with an enticing variety of sides such as fries, Italian tacos, pasta, chicken wings, and breadsticks.

Pizza Hut's history dates back to its founding in 1958. In 1977, it joined the PepsiCo family.

Later, Pizza Hut, along with Taco Bell and Kentucky Fried Chicken, became part of Tricon Global Restaurants, Inc., which eventually rebranded as Yum! Brands.

Over the years, Pizza Hut has introduced various innovative menu items and promotions, solidifying its position as a favorite among pizza lovers worldwide. The chain continues to adapt to changing consumer preferences, embracing digital ordering and delivery technologies to enhance customer convenience and satisfaction

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Freestanding Dine-In/Delivery/Carryout Freestanding "Delco" Delivery/Carryout Inline/Endcap "Delco" Delivery/Carryout RBD and DBR Dine-In/Delivery/Carryout
Initial Franchise Fee $25,000 $25,000 $25,000 $25,000
Equipment $100,000 - $225,000 $100,000 - $175,000 $100,000 - $175,000 $150,000 - $300,000
Opening Inventory $4,000 - $8,000 $4,000 - $8,000 $4,000 - $8,000 $4,000 - $8,000
Smallwares $12,000 - $25,000 $10,000 - $18,000 $10,000 - $18,000 $15,000 - $50,000
Building and Site Improvements $400,000 - $900,000 $425,000 - $700,000 $240,000 - $425,000 $550,000 - $1,575,000
Land Varies Varies Varies Varies
Computer System $15,000 - $30,000 $15,000 - $30,000 $15,000 - $30,000 $15,000 - $30,000
Computer System Training $0 - $1,500 $0 - $1,500 $0 - $1,500 $0 - $1,500
Additional Funds (3 months) $5,000 - $21,500 $5,000 - $21,500 $5,000 - $21,500 $5,000 - $21,500
Miscellaneous $10,000 - $22,000 $10,000 - $22,000 $10,000 - $22,000 $10,000 - $22,000
Advertising $0 - $16,500 $0 - $10,300 $0 - $10,300 $0 - $16,500
Start-up "Other" $3,000 - $4,000 $3,000 - $5,000 $3,000 - $5,000 $3,000 - $4,000
Total $579,000 - $1,498,500 $597,000 - $1,011,300 $412,000 - $736,300 $782,000 - $2,053,500

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Number of units

2024
Franchised units

5,295

5,302

5,300

Company-owned units

22

21

7

Total units

5,317

5,323

5,307

Franchise Disclosure Document

Training 

Before opening a restaurant, every franchisee or applicant must successfully complete Pizza Hut's comprehensive Initial Training Program. This program is offered approximately four times a year at the company's headquarters and at a System Restaurant in Plano, Texas.

The Initial Training Program encompasses a variety of courses spread over several days. Some of the key courses include:

  • Franchisee Onboarding: Conducted over three days, this course involves individual meetings with designated functional leaders from PHLLC.
  • Pizza Prep 1: A two-day course that covers Life Unboxed, Brand Standards, relationship building, and collaboration with key corporate departments.
  • Restaurant Training: This extensive training covers topics such as team member expectations, food and restaurant safety, delivery safety and service, customer service basics, food preparation, and more.

The cost of the Initial Training Program for the initially appointed Qualified Operators is included in the Initial Franchise Fee. However, for any subsequent personnel, whether required or requested by the franchisee, an additional fee is charged for the training.

Territory Protection

Franchisees are granted the right to operate a Pizza Hut Restaurant within a designated area known as the "Protected Area." Within this area, they are required to develop and manage their franchised restaurants.

While the Protected Area does offer certain territorial rights, it does not guarantee exclusivity. Franchisees are not permitted to utilize other distribution channels, such as the Internet, catalog sales, telemarketing, or other direct marketing methods, to make sales either within or outside of their Protected Area.

Additionally, Pizza Hut and its affiliates retain the right to use these distribution channels to conduct sales within the Protected Area using the Proprietary Marks, without any obligation to compensate the franchisee.

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