Franchise Deep Dive: Ledo Pizza Franchise Costs, Fees, Profit and Data

LAST UPDATED: 4/2024

FRANCHISE WEBSITE: https://ledopizza.com/franchising/ 

NUMBER OF LOCATIONS: 115+  

REPORTED COST TO GET IN: $206,250 - $672,500

REPORTED ROI (Item 19): N/A

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.”

How Many Ledo Pizza Locations Are There?

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.

What Is the Ledo Pizza Business Model?

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.

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

How Much Can Ledo Pizza Owners Make?

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

How Much Does It Cost to Open a Ledo Pizza Franchise?

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
• 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

What Is the Franchise Fee for Ledo Pizza?

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.

Who Are the Leaders of Ledo Pizza?

• James Beall - Chief Executive Officer/Chief Operating Officer
• Will Robinson - Chief Marketing Officer
• Aaron Weedy, Vice President Finance
• Mike Conway, Vice President Operations

What Helpful Articles Can I Read to Learn More?

• Start a Ledo’s Pizza Franchise in 2024
• A year after Original Ledo Restaurant closed, a new Ledo franchise is open in College Park
• Annapolis, Md.-based Ledo Pizza names Will Robinson as the company's first chief marketing officer
• Ledo Pizza helped put Maryland-style pizza on the map

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