Pizza HutFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Pizza Hut franchise requires a total initial investment of $46K – $453K, including a $5K franchise fee and an ongoing 10.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 12.5% charge-off rate across 27 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $46K – $453K
- 3rd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 10.0%
- 84th pct Service Resta…
- Units
- 1,313
- 94th pct Service Resta…
- SBA default
- 12.5%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1959. Systems this mature have refined operations and brand recognition.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $46K – $453K including a $5K franchise fee, 10.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 44/100. SBA loan charge-off rate of 12.5% across 27 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Pizza Hut, LLC
- Parent company
- YUM! Brands, Inc.
- Predecessor
- is Pizza Hut
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 7100 Corporate Drive, Plano, Texas 75024
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $537K
- vs $535K prior year
Affiliated brands
- operates or franchises
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Pizza Hut franchisees operate delivery, carryout, and dine-in pizza restaurants, managing kitchen operations, staff, inventory, marketing, and customer service. Daily operations include food preparation, order fulfillment, delivery logistics coordination, and point-of-sale management while remitting 10% of gross revenue to the franchisor.
- CEO
- Aaron Powell
- Headquarters
- TX
- Founded
- 1958
- FDD year
- 2024
- States available
- 49
FDD Item 7 · 2024 filing · 40 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial License Fee (Mini Kitchen)not refundable | $5K | $20K | |
| Real Estate (Mini Kitchen)not refundable | — | — | |
| Equipment and Smallwares (Mini Kitchen)not refundable | $35K | $57K | |
| Signage (Mini Kitchen)not refundable | — | — | |
| Remodeling and Construction (Mini Kitchen)not refundable | $3K | $64K | |
| Inventory (Mini Kitchen)not refundable | $600 | $4K | |
| Additional Funds - 3 months (Mini Kitchen)not refundable | $2K | $9K | |
| Marketing Fee (Mini Kitchen)not refundable | $2K | $2K | |
| Initial License Fee (Kiosk)not refundable | $5K | $20K | |
| Real Estate (Kiosk)not refundable | — | — | |
| Equipment and Smallwares (Kiosk)not refundable | $53K | $92K | |
| Signage/Menu Boards (Kiosk)not refundable | — | — | |
| Remodeling and Construction (Kiosk)not refundable | $8K | $20K | |
| Inventory (Kiosk)not refundable | $600 | $4K | |
| Additional Funds - 3 months (Kiosk)not refundable | $2K | $9K | |
| Marketing Fee (Kiosk)not refundable | $2K | $2K | |
| Initial License Fee (Retail Counter)not refundable | $5K | $20K | |
| Real Estate (Retail Counter)not refundable | — | — | |
| Equipment and Smallwares (Retail Counter)not refundable | $55K | $106K | |
| Signage/Menu Boards (Retail Counter)not refundable | — | — | |
| Total initial investment | $542K | $1.3M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $46K – $453K
- Better than avg vs category
- Liquid capital req'd
- $2K – $18K
- Better than avg vs category
- Franchise fee
- $5K – $20K
- Better than avg vs category
- Royalty
- 10.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- $1,500
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Transfer fee | $500 |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Pizza Hut Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,313
- Opened
- 108
- Last reporting year
- Closed
- 77
- Turnover rate
- 5.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +2.3%
- Net unit change last year
- 3-yr CAGR
- +1.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 29
- Closed (3yr)
- 69
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 18
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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
- Illinois
- Indiana
- New York
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 27
- Loan volume
- $25.9M
- Median loan
- $472K
- 50th percentile
- Charge-off rate
- 12.5%
- 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)
- 87.5%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 24
- Defaults
- 3
Vintage analysis
Pizza Hut charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Pizza Hut's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 17-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pizza Hut presents elevated risk due to shrinking unit base, undisclosed financial performance, active multi-party litigation, unprotected territory, and opacity around franchisee profitability.
Litigation (Item 3)
3 case reference(s): 1 pending, 0 settled.
Largest disclosed settlement: $7
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 44 / 100 rating
- 01MINORDeclining unit count (2.3% YoY contraction) signals system-wide weakness and potential market saturation
- 02MEDNo disclosed average revenue or net income data (Item 19) prevents accurate ROI assessment and suggests weak unit economics
- 03HIGHMultiple active litigations including $6.7M judgment won by franchisor, improper termination claims, and fiduciary duty breach allegations indicate franchisee relationship stress
- 04MINORUnprotected territory creates direct competition risk from other Pizza Hut franchisees and company-owned stores
- 05MINOR10% royalty on gross sales (not net profit) creates cash flow burden during low-margin periods
- 06MINOR5-year term is shorter than industry standard, creating renewal uncertainty and reinvestment risk
- 07MINOR$46,100–$453,000 range is extremely wide, suggesting highly variable unit economics or inconsistent implementation
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
3 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 15 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Pizza Hut designated point-of-sale system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Pizza Hut designated point-of-sale system
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pizza Hut · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pizza Hut franchise?
The total investment to open a Pizza Hut franchise ranges from $46K – $453K, with an initial franchise fee of $5K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pizza Hut franchise owners earn?
Pizza Hut does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Pizza Hut's franchise failure rate?
Based on SBA 7(a) loan data, Pizza Hut has a charge-off rate of 12.5% across 27 loans, meaning 12.5% 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 Pizza Hut franchise locations are there?
As of their most recent FDD filing, Pizza Hut has 1,313 total units in the United States, including 1,298 franchised units and 0 company-owned units. 108 new units were opened in the latest reporting year.
Is Pizza Hut a good franchise to buy?
FranchiseVerdict rates Pizza Hut as a A-grade franchise with a risk score of 44 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
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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.