MOD Pizza, an acronym for “Made on Demand,” is a rapidly expanding fast-casual pizza chain that offers customizable, artisan-style pizzas and salads. Founded in 2008 by Scott and Ally Svenson in Seattle, Washington, MOD Pizza has revolutionized the pizza industry with its unique concept that combines speed, quality, and affordability. The brand’s core mission is to serve not just delicious pizza but also to make a positive social impact, emphasizing the importance of people over profits. MOD Pizza operates under a strong set of values, focusing on inclusivity, fairness, and giving back to the community.
The MOD experience is built around a unique assembly-line format where customers can design their pizzas and salads from over 30 fresh toppings, all for one fixed price. This model not only offers flexibility and variety to customers but also ensures a quick service, with pizzas typically cooked in an 800-degree oven and ready in just a few minutes. MOD Pizza’s commitment to quality is evident in its use of fresh, locally sourced ingredients and hand-pressed dough.
Over the years, MOD Pizza has grown to become one of the most recognized brands in the fast-casual pizza segment, with hundreds of locations across the United States and the United Kingdom. The brand’s focus on creating a positive social impact, combined with its innovative business model, has earned it numerous accolades and a loyal customer base.
MOD Pizza Franchise Fee
Investing in a MOD Pizza franchise involves several financial commitments, starting with the initial franchise fee. The franchise fee for a single MOD Pizza restaurant is $30,000. This fee grants franchisees the rights to operate under the MOD Pizza brand and access its proprietary systems, training, and support. For those interested in developing multiple units, MOD Pizza offers area development agreements, which include a reduced franchise fee for additional locations.
In addition to the franchise fee, franchisees must be prepared for other initial costs, including real estate, construction, equipment, and initial inventory. The total initial investment required to open a MOD Pizza restaurant ranges from $714,000 to $985,000. This range depends on various factors such as the restaurant’s size, location, and the condition of the leased premises. MOD Pizza provides detailed financial disclosures in its Franchise Disclosure Document (FDD) to help prospective franchisees understand the full scope of the investment.
Once operational, franchisees are required to pay ongoing royalty fees, which are 5% of gross sales. These royalties support the continued development and support of the franchise network, ensuring that all locations benefit from the brand’s resources and expertise. Additionally, franchisees contribute to a national advertising fund, which is 2% of gross sales. This fund supports nationwide marketing efforts to promote brand awareness and drive customer traffic.
MOD Pizza Conditions
MOD Pizza sets specific conditions and requirements for prospective franchisees to maintain the brand’s standards and ensure successful operations. Financial stability is a key criterion, and prospective franchisees must meet certain financial qualifications. MOD Pizza typically requires a minimum net worth of $1 million and liquid assets of at least $300,000. These requirements ensure that franchisees have the financial capacity to support the initial investment and sustain ongoing operations.
MOD Pizza offers comprehensive training programs for new franchisees, covering all aspects of restaurant operations, from food preparation and customer service to marketing and financial management. This training ensures that all franchisees are well-equipped to run their restaurants effectively, even if they do not have prior experience in the food industry.
Franchisees are expected to adhere to MOD Pizza’s operational standards and guidelines, which are outlined in the franchise agreement. This includes maintaining cleanliness and safety standards, following approved recipes and procedures, and participating in ongoing training and development programs. Franchisees must also comply with all local, state, and federal regulations regarding food safety, labor laws, and business operations.
MOD Pizza requires franchisees to operate their restaurants full-time and be actively involved in the day-to-day management of the business. This hands-on approach helps ensure that franchisees maintain high levels of customer service and operational efficiency. Franchisees may also hire managers to assist with restaurant operations, provided that they receive proper training and oversight.
MOD Pizza Franchise Process
The process of becoming a MOD Pizza franchisee is designed to be thorough and supportive, ensuring that prospective franchisees are well-prepared for success. The process typically involves several key steps:
Initial Inquiry and Application:Interested candidates can begin the process by submitting an inquiry form on the MOD Pizza franchise website. This form collects basic information about the candidate’s background, financial qualifications, and areas of interest. Upon receiving the inquiry, a representative from MOD Pizza’s franchise development team will reach out to discuss the opportunity in more detail and answer any initial questions.
Franchise Disclosure Document (FDD) Review:Candidates who meet the initial qualifications will receive a copy of the FDD. This document provides detailed information about the franchise system, including financial performance, franchisee obligations, and legal disclosures. Prospective franchisees are encouraged to review the FDD carefully and consult with legal and financial advisors to fully understand the commitment involved.
Discovery Day:Qualified candidates are invited to attend a Discovery Day at MOD Pizza’s corporate headquarters in Bellevue, Washington. During this visit, candidates have the opportunity to meet with key members of the corporate team, tour the facilities, and learn more about the company’s culture and operations. Discovery Day provides a comprehensive overview of the franchise system and allows candidates to ask any remaining questions.
Franchise Agreement:After attending Discovery Day and receiving final approval from the franchise development team, candidates can proceed to sign the franchise agreement. This legally binding contract outlines the terms and conditions of the franchise relationship, including the rights and responsibilities of both the franchisor and the franchisee.
Site Selection and Lease Negotiation:Once the franchise agreement is signed, franchisees begin the process of selecting a suitable location for their restaurant. MOD Pizza provides support with site selection, using market analysis and demographic data to identify optimal locations. Franchisees work with real estate professionals to negotiate lease terms and secure a prime site for their business.
Restaurant Build-Out and Training:With a lease in place, franchisees move forward with the build-out of their restaurant. MOD Pizza offers guidance on design and construction to ensure that the restaurant meets brand standards. During this phase, franchisees also participate in a comprehensive training program, which includes both classroom instruction and hands-on experience in a working restaurant.
Grand Opening and Ongoing Support:Upon completion of the build-out and training, franchisees are ready to open their restaurant. MOD Pizza provides marketing support for the grand opening to generate initial customer traffic. Ongoing support includes regular consultations with field representatives, access to marketing resources, and continued training opportunities to ensure long-term success.
MOD Pizza Franchise Advantages
Franchising with MOD Pizza offers several advantages that contribute to the success and growth of its franchisees. These benefits include:
Proven Business Model:MOD Pizza has developed a proven business model that is both scalable and profitable. Franchisees benefit from the brand’s established systems, operational guidelines, and marketing strategies, which have been refined since the company’s inception.
Brand Recognition:MOD Pizza is a well-known and respected brand in the fast-casual dining industry. The company’s commitment to quality, innovation, and customer service has earned it a loyal customer base. Franchisees benefit from the brand’s strong reputation, which helps attract customers and drive sales.
Innovative Concept:MOD Pizza’s assembly-line format and customizable menu set it apart from competitors. The brand’s focus on fresh, high-quality ingredients and rapid service appeals to a wide range of customers, including health-conscious diners and those looking for convenience.
Comprehensive Training and Support:MOD Pizza provides extensive training and ongoing support to franchisees, ensuring they are well-prepared to operate their restaurants successfully. The training program covers all aspects of restaurant operations, and franchisees have access to a dedicated support team for ongoing assistance.
Marketing and Advertising:MOD Pizza invests in national and local marketing campaigns to promote brand awareness and drive customer traffic. Franchisees benefit from these efforts, as well as access to marketing resources and tools to support their local promotional activities.
Technology and Innovation:MOD Pizza leverages technology to enhance the customer experience and streamline operations. The brand’s online ordering system, mobile app, and loyalty program provide convenient options for customers and help drive repeat business. Franchisees benefit from these technological advancements, which improve efficiency and customer satisfaction.
Community Involvement:MOD Pizza places a strong emphasis on community involvement and charitable initiatives. Franchisees are encouraged to participate in local events and charitable activities, strengthening their connection to the community and enhancing the brand’s reputation.
Growth Opportunities:MOD Pizza continues to expand its footprint across the United States and internationally, offering franchisees the opportunity to grow with the brand. Multi-unit ownership is encouraged, allowing successful franchisees to open additional locations and increase their earning potential.
Commitment to Social Impact:MOD Pizza’s commitment to social impact sets it apart from other franchises. The company’s “MOD Squad” culture emphasizes inclusivity, fairness, and giving back to the community. Franchisees benefit from being part of a brand that prioritizes people over profits and strives to make a positive difference in the world.
Flexible Menu and Customization:The flexibility of MOD Pizza’s menu allows franchisees to cater to a diverse customer base. With a wide variety of toppings, crusts, and sauces, customers can create their own unique pizzas and salads, ensuring a personalized dining experience. This level of customization is a significant draw for customers and helps drive repeat business.
Strong Corporate Support:MOD Pizza provides strong corporate support to its franchisees, ensuring they have the resources and guidance needed to succeed. This support includes regular field visits, access to proprietary technology and systems, and ongoing training programs. Franchisees can rely on the corporate team for assistance with operational challenges and strategic planning.
Conclusion
MOD Pizza offers a compelling franchise opportunity for entrepreneurs looking to enter the fast-casual dining industry. With its proven business model, strong brand recognition, and commitment to innovation, MOD Pizza provides franchisees with the tools and support needed for success. The franchising process is designed to be thorough and supportive, ensuring that new franchisees are well-prepared to operate their restaurants effectively. For those seeking a rewarding business opportunity with a reputable and growing brand, MOD Pizza is an excellent choice.
Franchising with MOD Pizza not only offers the potential for financial success but also the opportunity to be part of a brand that values social impact and community involvement. As the brand continues to expand its footprint, franchisees have the chance to grow with the company and make a positive difference in their communities. Whether you are an experienced restaurateur or new to the industry, MOD Pizza provides a solid foundation for building a successful and meaningful business.