FranchiseVerdict
Little Caesars logo
FV-01510·STRONGExcellent86

Little Caesars

Food & Beverage - PizzaFranchising since 1962Website
Investment
$377K – $1.8M
75th pct Pizza
Avg revenue
46th pct Pizza
Royalty
Units
4,374
98th pct Pizza
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $377K – $1.8M including a $20K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 323 loans (below the industry average).
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Little Caesar Enterprises, Inc.
Parent company
none
Incorporated in
Michigan
HQ
2125 Woodward Avenue, Detroit, Michigan 48201-3400
Auditor
Deloitte & Touche LLP
Audited financials
⚠ Going-concern note
Disclosed in FDD 2026
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Little Caesars unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $377K–$1.8M
Working capital
$
FDD reports $17K–$47K

Unlevered ROIC · per unit

3%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$38K
EBITDA margin
5.0%
Total invested
$1.1M
Payback
354 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Little Caesars franchisees operate quick-service pizza restaurants, managing dough preparation, ingredient sourcing, food assembly, and customer service in a fast-casual environment. Day-to-day operations include staffing and scheduling, inventory management, food cost control, delivery logistics (for "Carryout-Delivery" model), and marketing to drive volume in a competitive pizza category. Franchisees must maintain brand standards, manage local labor costs, and execute corporate promotions while competing with national chains and local independent pizzerias.

CEO
Edward Gleich
Founded
1962
FDD year
2026
States available
54

Item 7 · what it costs

The Vitals

Total investment
$377K – $1.8M
All-in to open one unit
Liquid capital
$17K – $47K
Cash you must have on hand
Franchise fee
$20K
Royalty
the greater of 6% of Gross Sales for each one-week period…
Ad fund
7.0%
typical 3–5%
Total fee load
13.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
4,374
Opened
109
Last reporting year
Closed
22
Turnover rate
0.5%
Company-owned
586
Corporate units in the system
% franchised
87%
vs corporate-owned
Net growth (yr3)
+2.4%
Net unit change last year
3-yr CAGR
+4.0%
Compounded over last 3 years
2024
3,788+93
Franchised units
2025
3,701
Franchised units
2026
3,641
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 14 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 14 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
323
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

47
Risk · 0-100
STRONG47 / 100

Little Caesars presents moderate-to-cautious risk: stagnant unit growth, significant litigation history, undisclosed financials, and an enforcement-oriented franchisor relationship warrant deep validation with current franchisees before investment.

Score breakdown · what drove the 47 / 100 rating

  1. 01HIGHHigh litigation history including breach of contract, fraud in inducement, and anti-poaching settlement suggests adversarial franchisor-franchisee relationships
  2. 02MINORMinimal unit growth (2.4% YoY) on mature system of 4,374 units indicates market saturation and difficulty in recruiting/retaining franchisees
  3. 03MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents verification of profitability claims and return on investment
  4. 04MINORWide investment range ($376,500–$1,769,200) suggests high variability in startup costs and unclear path to ROI
  5. 05MINORHybrid royalty structure (greater of 6% or $300/week) creates floor burden on low-revenue locations, with minimum annual royalty ~$15,600
  6. 06MINORFranchisor appears litigious against franchisees—multiple cases initiated to enforce terminations and exercise contractual rights, indicating enforcement-heavy management style

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
11
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Michigan

Item 11

Training & Operations

Classroom training
64 hrs
On-the-job training
250 hrs
POS system
Caesar Vision
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

99 numbers

Locked
(334) 248-••••
AL
(925) 625-••••
CA
(630) 790-••••
IL

One-time purchase · CSV download · Validation questions included

FDD download

Little Caesars · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above