Marco's Pizza Franchise Cost, Revenue & Review 2026
- Investment
- $287K – $807K
- Disclosed sales
- $934K
- gross sales, not profit
- SBA charge-off
- 7.6%
- on 460 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Marco's Pizza is a quick-service pizza franchise positioned on fresh, quality ingredients and Italian-quality pies. Franchisees run stores for delivery and carryout, managing kitchen staff, food quality, and local marketing.
FranchiseVerdict summary · 2026
A Marco's Pizza franchise requires a total initial investment of $287K – $807K, including a $25K franchise fee and an ongoing 5.5% royalty[2]. Per the 2025 FDD, average unit revenue was $934K[2]. SBA 7(a) loans show a 7.6% charge-off rate across 460 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $287K – $807K
- 46th pct Service Resta…
- Avg gross sales
- $934K
- Net sales17th pct Service Resta…
- Royalty
- 5.5%
- 44th pct Service Resta…
- Units
- 1,159
- 93rd pct Service Resta…
- SBA charge-off
- 7.6%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $287K – $807K including a $25K franchise fee, 5.5% ongoing royalty.
- RETURNSAverage unit revenue of $934K/year (median $886K).
- RISKVerdict A (Strongest tier), verdict score 90/100 (higher is better). SBA loan charge-off rate of 7.6% across 460 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +43 franchised outlets in the latest year (68 opened, 25 closed); 176 signed but not yet open (Item 20).
- LEGAL16 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Marco's Franchising, LLC
- Parent company
- Marco's Pizza Holdings, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- MP Marks, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- and Certain Affiliates
- Prior franchisor entity
- CEO title
- Co-CEO
- John Butorac
- CEO experience
- 20 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- OH
- HQ
- 5252 Monroe Street, Toledo, Ohio 43623
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $121.9M
- vs $111.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- has ever engaged in
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- John Butorac
- Headquarters
- OH
- Founded
- 2004
- FDD year
- 2025
- States available
- 34
Can you afford it, and what does the money buy?
Entry cost runs 13% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $9K | $30K |
| Equipment, build-out, other | $253K | $752K |
| Total initial investment | $287K | $807K |
Source: Marco's Pizza 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $287K – $807K
- Middle of category vs category
- Liquid capital req'd
- $9K – $30K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 5.5%
- typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 10.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 5.0% |
| Technology fee | $111 |
| Training fee | $9K |
| Transfer fee | $8K |
| Renewal fee | $6K |
| Inventory (initial) | $7K – $11K |
| Total fee load | 10.5% of rev |
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Marco's Pizza until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$566K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Marco's Pizza unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $934K
- Per unit, per year
- Median gross sales
- $886K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net royalty sales
- Sample size
- 955 outlets
- vs category median 19 · large
- Range (low → high)
- $340K→$2.2MCited, not corroborated — printed on page 90 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $586K→$1.4M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $934K/year in gross sales. Revenue-to-investment ratio: 1.7x.
Fee burden
Total ongoing fee load of 10.5% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 9.4% CAGR over 3 years across 1,159 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Marco's Pizza Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,159
- Opened
- 68
- Last reporting year
- Closed
- 25
- Terminated
- 6
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.2%
- Company-owned
- 45
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (3-yr)
- +9.4%
- Net unit change over 3 years
- 3-yr CAGR
- +9.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 6
- Not renewed
- 0
- Transferred
- 89
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 176
- 0.15 per open outlet · Item 20 Table 5
- Projected new
- 79
- Franchisor's next-year forecast
- Transfer rate
- 7.2%
- Owners selling to other franchisees
- Termination rate
- 1.9%
- Franchisor-initiated terminations
- Ceased ops
- 0.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- South Dakota
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
99 current owners across 25 states.
- TX 23
- FL 20
- VA 8
- GA 4
- NC 4
- NV 4
- TN 4
- CA 3
- CO 3
- KY 3
- AL 2
- IN 2
- +13 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 460
- Loan volume
- $164.4M
- Median loan
- $345K
- 50th percentile
- Charge-off rate
- 7.6%
- on 460 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 92.4%
- 5-yr charge-off
- 4.8%
- Loans approved 2021+
- Active lenders
- 95
- Defaults
- 21
- Typical loan rate
- 6.7%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 11,526
- 7.0 per loan
- Lender concentration
- 8%
- top lender's share
Borrower mix: 80% went to startups / new businesses, 20% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Marco's Pizza charge-off rate by loan vintage
Top lenders financing Marco's Pizza franchisees
Showing 3 of 95 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Marco's Pizza from SBA 7(a) FOIA data.
- Principal loss rate
- 2.7%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 6.74%
- Avg chargeoff amount
- $210K
- Lender concentration
- 8.0%
- Job velocity
- 7.0 per $100K
- Startup risk premium
- +7.5pp
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 11,526
Top SBA lendersTop lender holds 8% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | KeyBank National Association | 37 | $15.1M | 0.0% |
| 2 | The Bancorp Bank National Association | 32 | $11.4M | 0.0% |
| 3 | The Huntington National Bank | 25 | $5.5M | 15.4% |
| 4 | Ameris Bank | 25 | $8.6M | 0.0% |
| 5 | Oriental Bank | 17 | $5.4M | 0.0% |
| 6 | PromiseOne Bank | 16 | $5.0M | 15.4% |
| 7 | Stearns Bank National Association | 15 | $4.9M | 23.1% |
| 8 | BancFirst | 15 | $6.5M | 7.1% |
| 9 | United Community Bank | 15 | $6.1M | 0.0% |
| 10 | Customers Bank | 14 | $5.6M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 96 | 2 | 4.1% |
| GAGeorgia | 64 | 2 | 4.3% |
| FLFlorida | 49 | 2 | 8.3% |
| PRPuerto Rico | 32 | 0 | 0.0% |
| OHOhio | 27 | 0 | 0.0% |
| NCNorth Carolina | 23 | 0 | 0.0% |
| MIMichigan | 22 | 3 | 18.8% |
| VAVirginia | 19 | 2 | 22.2% |
| TNTennessee | 16 | 0 | 0.0% |
| CACalifornia | 15 | 1 | 14.3% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 7.6% — 53% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Marco's Pizza presents moderate-to-cautionary risk due to undisclosed profitability metrics, multiple active litigation cases, sluggish growth, and collection actions suggesting potential franchisee performance or compliance issues.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
2 pending defendant cases (area representative disputes); multiple franchisor-initiated collection actions against former franchisees; 2 prior actions settled (Cajunland Pizza settled for $310,000; SC America settled for $100,000 plus equipment purchase)
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated financial statements of Marco's Franchising, LLC and Subsidiaries (a wholly owned subsidiary of Marco's Pizza Holdings, LLC), audited by BDO USA, P.C., fiscal years ended Dec 29, 2024 and Dec 31, 2023.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 90 / 100 verdict
- 01MINORNo Item 19 (Average Net Income) disclosure — cannot verify actual profitability claims despite $934K average revenue
- 02HIGHMultiple ongoing litigation cases involving former area representatives (American Eagle, KAM Development) and franchisor collection actions suggest systemic relationship issues
- 03MINORSlow unit growth (4.0% YoY) combined with collection actions against former franchisees indicates potential performance/retention problems
- 04MINORHigh investment range ($286K-$807K) with 5.5% royalty lacks transparency on typical break-even timeline without net income data
- 05HIGHPattern of franchisor-initiated litigation (J&J ZA, FirstSlice, Cajunland Pizza) raises questions about enforcement practices and franchisee support quality
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Arbitration location | Toledo, Ohio (mediation) |
| Jury trial waiver | No |
| Governing law | OH |
| Litigation count | 16 |
View Item 3 litigation summary
2 pending defendant cases (area representative disputes); multiple franchisor-initiated collection actions against former franchisees; 2 prior actions settled (Cajunland Pizza settled for $310,000; SC America settled for $100,000 plus equipment purchase)
Items 10, 11
Training & Operations
- Classroom training
- 96 hrs
- On-the-job training
- 266 hrs
- Training location
- Marco's University (Toledo, OH support center) and certified training stores
- Ongoing training
- Required
- Site selection
- franchisee with franchisor approval; approved real estate brokers required
- Franchisor financing
- Not offered
- Item 10
- POS system
- MOMS (Marco's Order Management System) provided by MTS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MOMS (Marco's Order Management System) provided by MTS
Item 20 · call current owners
Franchisee Contacts
99 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Marco's Pizza franchise?
The total investment to open a Marco's Pizza franchise ranges from $287K – $807K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Marco's Pizza franchise owners earn?
According to Item 19 of the Marco's Pizza FDD, the average gross sales per unit is $934K. The median is $886K. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Marco's Pizza?
Marco's Pizza is franchised by Marco's Franchising, LLC. Its parent company is Marco's Pizza Holdings, LLC. The ultimate parent named in the FDD is MP Marks, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Marco's Pizza FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Marco's Pizza FDD and qualifies whose outlets they describe.
What is Marco's Pizza's franchise failure rate?
Based on SBA 7(a) loan data, Marco's Pizza has a charge-off rate of 7.6% across 460 loans, meaning 7.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Marco's Pizza franchise locations are there?
As of their most recent FDD filing, Marco's Pizza has 1,159 total units in the United States, including 1,114 franchised units and 45 company-owned units. 68 new units were opened in the latest reporting year.
Is Marco's Pizza a good franchise to buy?
FranchiseVerdict rates Marco's Pizza as a A-grade franchise with a verdict score of 90 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.