Risk Score
Pending analysis
Investment Range
$286,727 - $807,152
Min Cash Required
$9,000
Total US Locations
1,159
Business Summary
Marco's Pizza operates retail stores that primarily sell various sizes and recipes of pizza for dine-in, carryout, and delivery. Marco's Pizza stores also offer secondary products such as chicken wings, salads, CheezyBread, sandwiches, desserts, and beverages. The stores are physical establishments occupying commercial space, designed and decorated to meet Marco's Pizza operational and image specifications.
Corporate History
Marco's Franchising, LLC was formed in 2003 as an Ohio limited liability company with the primary purpose of franchising Marco's Pizza restaurants. Marco's Franchising began offering franchises for its stores in January 2004. The Marco's Pizza brand itself was founded by Pasquale Giammarco. Marco's Franchising is a wholly-owned subsidiary of Marco's Pizza Holdings, LLC, which was formed in 2017. An affiliate, MP Marks, LLC, acquired the brand's intellectual property rights in December 2015, which are then licensed to Marco's Franchising.
Financial Overview
Investment Range
$286,727 - $807,152
Franchise Fee (High)
$25,000
Minimum Cash Required
$9,000
Royalty %
5.5%
Marketing %
5%
Equipment Costs (Low)
$187,125
Equipment Costs (High)
$616,600
Working Capital
$19,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Marco's Franchising's financial statements show a strong financial position with unqualified audit opinions for the years ending December 29, 2024, and December 31, 2023. The company reported net income of $13,770,754 in 2024 and $11,049,711 in 2023. Cash flows from operating activities were robust, at $17,282,977 in 2024 and $9,893,829 in 2023. The consolidated balance sheets show positive member's equity. While Marco's Franchising has guaranteed bank debt for affiliated entities, totaling over $56 million in 2024, it currently reports no circumstances that would require performance under these guarantees. The auditors did not raise any going concern qualifications, indicating that Marco's Franchising is expected to continue its operations for the foreseeable future.
Financing Details
Marco's Franchising does not offer any direct or indirect financing to its franchisees. Additionally, Marco's Franchising does not guarantee any notes, leases, or other obligations of its franchisees. Franchisees are responsible for securing their own funding through external sources.
Performance Metrics
Total US Locations
1,159
Franchised Units
1,114
Corporate Units
45
Avg Square Footage
1,400
Franchising Since
2004
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
16
Litigation Summary
Marco's Franchising has been involved in several legal disputes. Currently, there are two ongoing lawsuits filed by former area representatives, American Eagle Investments, Inc. and KAM Development, LLC. These cases involve claims of breach of contract and violations of the Ohio Business Opportunities Act related to the termination or non-renewal of area representative agreements due to alleged non-compliance. The American Eagle case saw a summary judgment for Marco's Franchising reversed on appeal in August 2024, sending it back for further proceedings. The KAM Development case had a partial summary judgment granted in May 2023, with one claim still pending. Additionally, Marco's Franchising initiated numerous collection actions against former franchisees in June 2024 and April 2024, seeking unpaid amounts, with some resulting in default judgments and others still pending. In prior actions, Marco's Franchising settled a multi-party lawsuit in November 2024 with several former franchisees and an area representative, involving claims of deceptive trade practices, tortious interference, and breach of contract related to refusal to consent to a transfer. Another case in July 2023 involved a former franchisee suing Marco's Franchising for breach of contract, which was settled.
Bankruptcy History
Marco's Franchising has no bankruptcy information to report, as stated in Item 4 of its Franchise Disclosure Document. No bankruptcy proceedings are required to be disclosed for the franchisor, its affiliates, or its management personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the Marco's Pizza franchise agreement, franchisees must be in "Good Standing" and comply with various renewal requirements. This includes giving written notice of their intent to renew between 6 months and 1 year before the current term expires. Franchisees must also ensure their store is remodeled to current standards, including replacing signage, equipment, and decor, with all required remodeling completed before the renewal term begins. The franchisor limits remodeling expenditures to no more than 25% of the average cost of a new store within any 5-year period for this purpose. Franchisees must provide proof of their right to occupy the premises for the new term, sign a general release of claims against Marco's Franchising, and execute the then-current form of franchise agreement, which may have materially different terms, including potentially higher fees. A renewal fee of $6,250 or 25% of the then-current standard Initial Franchise Fee (whichever is greater) is also required.
Training & Support Program
Franchisor Assistance
Marco's Franchising provides comprehensive assistance to its franchisees, starting before the store even opens. This includes an initial 9-week training program at Marco's University in Toledo, Ohio, which combines online learning, virtual sessions, and hands-on experience at a certified training store. Marco's Franchising also guides franchisees in selecting an approved site, provides general design and decor plans, assists with obtaining equipment and supplies, and grants a license to use its brand and system. After opening, Marco's Franchising offers continuous advice, guidance, and assistance through various channels such as Manual updates, bulletins, and consultations. It also provides additional training courses for franchisees and their employees, and administers both a Brand Development Fund and a National Advertising Fund to support marketing efforts. Technology support for issues like network connectivity, POS system functions, and third-party delivery integration is also provided by an affiliate, MTS, through a Service Innovation Team. Marco's Franchising also maintains an intranet system called 'CiaoNet' and provides Marco's Pizza email accounts for all official communications, which franchisees are required to access daily.
Initial Training Hours
363
Training Location
Toledo, OH (Marco's University), certified training stores, and online/eLearning platforms
Ongoing Support
After opening, Marco's Franchising provides continuous support through various channels. Franchisees receive ongoing advice, guidance, and assistance concerning the Marco's Pizza System, delivered via Manual updates, bulletins, written materials, and consultations (telephone or in-person). Marco's Franchising also offers additional required and voluntary training courses for franchisees and their employees. Technology support and troubleshooting are provided by an affiliate, MTS, through a Service Innovation Team for issues related to network connectivity, POS system functions, credit card processing, and third-party delivery integration. Marco's Franchising also manages a Brand Development Fund and National Advertising Fund to support advertising and promotional programs. Franchisees are required to use an intranet system, CiaoNet, and a dedicated Marco's Pizza email account for all official communications, checking them daily for updates and directives.
Franchise Requirements
Ideal Candidate Profile
Marco's Pizza is seeking individuals or entities who are proficient in English and capable of operating a pizza store with a hands-on approach to management. Ideal candidates should demonstrate the ability to successfully handle customer contact, learn basic pizza store operations, understand the challenges of the food service industry, and perform administrative and people leadership functions. For those operating multiple Marco's Pizza stores (four or more), the franchisor requires an "above store leader" and a supervisory infrastructure plan, along with additional supervisory training and a business plan for managing multiple locations. While not explicitly stated as requirements, Marco's Pizza offers discounts to qualified first responders, U.S. veterans (especially those with 50% or more military service-connected disability), and certain key management employees, suggesting a preference for individuals with proven service, leadership, or operational experience.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
limited
Territory Size Requirements
Marco's Pizza defines a franchisee's Area of Responsibility, which is typically a 1-mile radius from the front door of the approved store location. However, this area can be smaller in densely populated urban areas, specific market areas like resorts or facilities (e.g., stadiums, airports), or if natural boundaries such as bodies of water or expressways exist. While franchisees operate within this Area of Responsibility, their territorial protection is limited and does not extend to Special Venues where Marco's Franchising or other entities may operate, nor does it grant exclusivity against other channels of distribution or third-party delivery services.
Staffing Notes
Marco's Pizza requires the Designated Franchise Operator, who may be the franchisee, to control and be responsible for all store operations. This individual must dedicate their entire working time (at least 40 hours per week) to on-site management and supervision, ensuring a competent and trained staff maintains good customer relations and adheres to dress codes. For franchisees owning four or more stores, Marco's Pizza requires an "above store leader" and an approved supervisory infrastructure plan, demonstrating their readiness to oversee multiple locations. Each store must also have a manager on-premises during all operating hours to supervise daily activities. Franchisees are solely responsible for hiring, determining job roles, setting wages and benefits, and managing labor relations for their employees.