Ledo Pizza: Franchise Costs, Fees, Profit & Locations

Company overview

Ledo Pizza is a restaurant franchise known for its high-quality, rectangular pizzas made with fresh handmade dough and premium ingredients. Because of the shape of its pizzas, Ledo has adopted the tagline, “Ledo pizza is square because we don’t cut corners.”

Ledo Pizza was founded in 1955 by Bob Beall and Tommy Marcos Sr. in Adelphi, Maryland. It quickly gained popularity for its high-quality rectangular pizzas with sweet tomato sauce, thick pepperoni and smoked provolone cheese. The brand began franchising in 1989 and has since expanded to over 115 locations in Maryland, New York, North Carolina, South Carolina, Virginia, West Virginia, Florida and Washington, D.C.

The key aspects of the Ledo Pizza business model include:

• Traditional Recipe. Ledo Pizza follows a traditional recipe dating back to 1955, emphasizing freshly handmade dough, high-quality smoked provolone cheese and the same style of tomatoes used since its founding.

• Family Atmosphere. Ledo Pizza aims to create a welcoming family atmosphere in its restaurants, appealing to a wide range of customers.

• Rectangular Pizza. Ledo Pizza distinguishes itself with its square pizzas, a unique feature that came about simply because rectangular baking pans were easier to come by than round ones in the 1950s.

• Menu Variety. In addition to pizza, Ledo Pizza offers a variety of menu options including subs, salads, lasagna, spaghetti, soups and breadsticks.

• Franchise Opportunities. Franchisees receive support in various areas including technology, operations, marketing and procurement.

• Franchise Types. Ledo Pizza offers two types of franchises: unit franchises (which are suitable for individuals focusing on a single location) and regional franchises (which are granted to those with strong financial backing and may include multiple locations).

• Conversion Strategy. Ledo Pizza provides a conversion strategy for restaurant owners looking to convert their existing establishments into Ledo Pizza restaurants.

Business model

Overall, Ledo Pizza's business model emphasizes quality, tradition, franchise support and menu diversity to attract customers and drive franchisee success.

Ledo Pizza does not publicly provide information about the financial performance of its franchises.

The total investment ranges from $206,250 - $672,500. Below is a breakdown of the associated costs:

• Initial Franchise Fee: $30,000

• Advertising and Promotion: $250 - $1,000

• Equipment and Supplies: $75,000 - $225,000

• Opening Inventory: $5,000 - $13,000

• Rent: $3,000 - $15,000

• Signage: $500 - $7,500

• Additional Funds: $10,000 - $25,000

• Lease Deposits: $3,000 - $15,000

• Leasehold Improvements: $70,000 - $300,000

Franchise costs

• Utility Deposits: $500 - $6,000

• Miscellaneous Start-up Costs: $5,000 - $15,000

• Impact Fees & Permits: $1,000 - $10,000

• Insurance: $3,000 - $10,000

The franchise fee for opening a Ledo Pizza location is $30,000. The franchisor also charges a royalty fee of 5% and an advertising fee of 2% of monthly gross sales.

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