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

LAST UPDATED: January 2024

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

NUMBER OF LOCATIONS: 100+

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

REPORTED ROI (Item 19): N/A

Ledo Pizza is a regional pizza franchise primarily located in the Mid-Atlantic known for its rectangular-shaped pizzas with a thin crust. 

How Many Ledo Pizza Locations Are There?

Ledo Pizza was founded in Adelphi, Maryland, by Bob Beall with a simple concept: to provide amazing pizza at a reasonable price in a comfortable, family atmosphere. Since its inception, Ledo Pizza has maintained its commitment to quality and tradition, still using the same high-quality ingredients and recipes it has used since1955. Today, there are over 100 Ledo Pizza restaurants across the Northeast U.S. 

In 2021, the brand ramped up plans to grow through conversions of former restaurant spaces. Instead of building from the ground up, franchisees can convert their existing restaurant shells to a Ledo Pizza restaurant, saving on costs and increasing the speed of construction while building upon Ledo’s brand awareness. 

What Is the Ledo Pizza Business Model?

Ledo Pizza is known for its unique rectangular shape, a result of using rectangular baking pans that were readily available in the 1950s. The pizza is rolled to order with fresh handmade dough and topped with high-quality cheese and tomatoes. 

Ledo Pizza offers two types of franchises: 

Unit Franchise: A unit franchise is a single Ledo Pizza location. Franchisees are granted a single franchise in the area approved by Ledo Pizza. This type of franchise is suited for those who want to maximize their business by focusing on one unit.

Regional Franchise: A regional franchise will only be granted to those that have very strong financial backing, as it requires considerable commitment and resources. In most cases, the franchisee will be granted two or more locations; apart from this, the requirements are identical to those of the area franchise.

Ledo Pizza refers to its strategy for franchisee success as "T.O.M.P.," which stands for:

Technology (T): Ledo Pizza emphasizes the use of technology to streamline operations and enhance customer experience. This includes best-in-class resources for online ordering, in-store point-of-sale (POS) systems, and labor/inventory management tools.

Operations (O): With over 65 years of operational experience, Ledo Pizza has developed a set of standard operating procedures designed to reduce costs, increase throughput, and enhance guest satisfaction. Ledo Pizza’s operational effectiveness is evident from its high ranking in customer loyalty, demonstrating a commitment to maintaining quality and efficiency across all locations.

Marketing (M): Ledo Pizza strategically markets itself both systemwide and locally to build brand awareness and engage with communities. It has secured partnerships with prominent sports teams like the Baltimore Ravens and the Maryland Terrapins, as well as endorsements from celebrities like hockey All-Star John Carlson. Utilizing various channels — including broadcast television, radio, and social media platforms like Facebook, Twitter, and Instagram — Ledo Pizza fosters strong relationships with its customer base.

Procurement (P): Ledo Pizza's procurement strategy focuses on ensuring consistent access to high-quality products at competitive prices throughout the supply chain. The brand utilizes proprietary technologies to optimize procurement processes, including identifying opportunities for cost savings, integrating collective purchase power, and enhancing menu offerings based on consumer and market conditions. By leveraging industry-leading contract management systems and efficient supply chain practices, Ledo Pizza aims to minimize food costs while maintaining its quality standards.

How Much Can Ledo Pizza Franchise Owners Make?

Earnings for Ledo Pizza franchise owners are not publicly available. 

How Much Does It Cost to Open a Ledo Pizza?

The total investment to open a Ledo Pizza franchise 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 Startup Costs: $5,000 - $15,000
• Impact Fees and Permits: $1,000 - $10,000
• Insurance: $3,000 - $10,000
• Total: $206,250 - $672,500

Additionally: 

• The royalty fee is 5% of gross sales
• The advertising fee is 2% of gross sales

What Is the Franchise Fee for Ledo Pizza?

The franchise fee is $30,000. 

Who Is the Leadership of Ledo Pizza?

• James Beall – CEO and COO
• Will Robinson – Chief Marketing Officer
• Aaron Weedy – Chief Financial Officer
• Mike Conway – Vice President Operations

What Helpful Articles Can I Read to Learn More About Ledo Pizza?

• Conversions Open the Door for Ledo Pizza’s Growth
• Franchising FAQ - Ledo Pizza
• Ledo Pizza Franchise Cost & Opportunities 2024
• Franchise Process - Ledo Pizza
• Start a Ledo Pizza Franchise in 2024

Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our Power Rankings to read more on brands making moves. 

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Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.

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