Pizza Hut Franchise Requirements

by Maggie McCormick; Updated September 26, 2017
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As of 2010, Pizza Hut had 5,401 U.S. franchises and 4,229 franchises abroad. The brand recognition associated with Pizza Hut could give you an advantage over the competition. Yum! Brands--the parent company of Pizza Hut and other food franchises--also encourages you to incorporate the WingStreet brand into your Pizza Hut franchise, since pizza and wings go together well. If you're considering buying a Pizza Hut franchise, you must meet the requirements.

Net Worth

Your net worth is the amount of money that you're worth, determined by adding up all of your assets and subtracting all of your liabilities. In order to purchase a Pizza Hut franchise, you must have a net worth of $250,000 or more.

Liquid Capital

In addition to your net worth, some of this money must be "liquid," or easily accessible to cover the costs of starting a business. Though financing is available, you will need to put some of your own money into the business. You will need at least $250,000 in liquid capital, but this amount could be more based on the type of Pizza Hut you want to open. A larger, restaurant-style Pizza Hut requires more money.

Business Experience

Yum! Brands prefers that you have some pizza industry experience and business training. However, the company does provide training to new franchisees, so you can learn what you don't know.

Franchise Fee

You must pay an additional franchise fee of $25,000, which buys you the opportunity to use the Pizza Hut brand name and to receive special training and help as a franchisee.

Royalties

The costs of owning a Pizza Hut franchise don't stop once the business is up and running. You also have to pay a royalty fee on the profits that you make, amounting to six percent.

About the Author

Maggie McCormick is a freelance writer. She lived in Japan for three years teaching preschool to young children and currently lives in Honolulu with her family. She received a B.A. in women's studies from Wellesley College.

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