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Guest post by: Serrgio Wilson Become an Author

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I live about 2 miles from the very first Pizza Hut that was founded in Wichita, KS and to this day I drive past it from time to time and I find myself eating their at least twice a month. I absolutely love eating Pizza Hut. However I used to think to myself what is all involved in starting a Pizza Hut and what is the cost associated with it?

I want to focus on cost of this specific franchise because I personally enjoy eating their because the food is great and because of the great ambiance the restaurant provides to its guests when dining in. The first cost I want to focus on is cash liquidity. The chain restaurant wants all prospective franchisees to have at least $150K of cash and they would prefer that the individual have a net worth of $250K. For a lot of people this is a great expense because having that amount of money is quite costly. Alongside that liquid amount they want the prospective to have general business experience and great marketing skills.

I can’t complain about the business experience and marketing experience because those are the two elements that will separate a breaking even restaurant from a thriving business. The next cost is the franchise fee, the fee that one pays upfront to borrow the name. This cost is $25K, this is what’s paid just to borrow the name but that doesn’t disappear just at the beginning, in fact it’s ongoing in the form of a royalty. The franchisee will also pay a yearly royalty of 6%. It’s lower than McDonalds but it’s still yet another cost to the franchisee.

With all these fees associated with Pizza Hut one can expect an absolute bare minimum investment of about $325K but it can stretch to nearly $3 million depending on the location and other miscellaneous factors. I think as a whole one can do well with Pizza Hut because it’s proven nationwide name. The Pizza Hut brand can be found anywhere in the United States and it runs huge marketing campaigns that are often endorsed by celebrities and athletes.

The earning potential can be great too with experienced franchisees regularly earning six figure incomes. As a whole the franchise is a good one for the right person but they will need to understand that this venture requires a lot of money, time and dedication.

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Referred by: http://jaykubassek.com

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