How to buy a Pizza Hut franchise and succeed

It takes a lot of dough to open a Pizza Hut franchise.

Pizza Hut is perhaps America's best known pizza restaurant chain. The franchisor company, Yum! Brands, provides strong support to franchisees. But it's not for everyone. Pizza Hut requires someone who has substantial business and restaurant experience and adequate funds.

Things You'll Need

• Net worth of $700,000
• Liquid assets: $150,000
• Fes of $295,000 to $422,000
• Industry experience
• Marketing experience

Instructions

1. Consider whether a Pizza Hut franchise is for you. Ideally, the company wants franchisees committed to running three restaurants within three to five years. It can take as long as 45 weeks to open a Pizza Hut due to the company's qualification and preparation requirements as well as the time to build a new restaurant -- assuming you don't buy an existing one. The advantage to this long wait is that it reflects the company's high standards and determination that its franchisees are well prepared.

2. Research Pizza Hut franchising and available opportunities. Carefully review the Yum! Brands franchise website.

3. Contact Pizza Hut through its website or email the company at [e-mail]. You will be sent forms and franchise brochures. You can also request someone call you to discuss Pizza Hit franchise opportunities.

4. Decide whether you want to explore "co-branding" -- opening a restaurant that will sell Pizza Hut and other Yum! Brand products such as Taco Bell and Kentucky Fried Chicken. A co-branded restaurant will benefit from more advertising and a great array of products. It also will be larger and more expensive to purchase.

5. Decide whether you want to establish a new Pizza Hut or buy an existing franchise. An existing franchise will have a sales track record but probably will command a goodwill fee to the current owner. Ask to see financial records going back several years if you are considering an existing Pizza Hut. Beware if the fees for an existing restaurant seems too low -- the owner or company may know something about the area such as another restaurant being planned nearby and is trying to bail out.

6. Research carefully available Pizza Hut locations. Will there be adequate customer traffic? Does the location have easy and safe road access? Is any road construction planned in front of or near the site? Are there other restaurants located or planned near the site? How close is the nearest Pizza Hut?

7. Examine the Franchise Disclosure Document. Under Federal law, you must be given 10 days to review the FDD before you sign anything or pay any money. The FDD must include names of current and former franchise owners. Contact some of them to discuss their experiences with the company. See if a current franchisee will let you observe the operations of his business.

8. Prepare a business plan for your Pizza Hut. Yum! Brands has a process for you to do this.

9. Sign the FDD and pay your fees. There is a one-week training course at Yum! Brands headquarters and an 11-week training program in your new restaurant. Up to three people may take the training course.

10. Open your new Pizza Hut. If it is a new restaurant, you will do a grand opening.

11. Manage for success. Next to quality control and cleanliness, finding, motivatin, and retaining good employees will be the key to your success.

12. Can't afford a Pizza Hut? There's lots of other possibilities, such as Subway, 7 Eleven and cleaning franchises.

References

• Yum! Franchsing