Pizza Karma
Food & Beverage · Fast-Casual Restaurants
- Active units
- 2
- Royalty
- 6.0%
Franchised, year-end 2023
of weekly Net Sales
About Pizza Karma
Pizza Karma is a brand that believes in all things good: good food, good people, good times, and doing good. Our pizzas are made with the highest quality ingredients and flavors from around the world, all on our signature Tandoor-Fired crust. But we're not just focused on great taste - we also strive to be good to the earth. That's why we compost and recycle all our waste to minimize our environmental impact. At Pizza Karma, we also believe in giving back to our community. We donate a portion of our proceeds to local charitable organizations, because we know that what we give is just as important as what we receive. By joining us, you'll not only get to enjoy delicious global-inspired pizzas but also contribute to local causes and feel good about it. When you visit Pizza Karma, you'll be greeted with a smile and hello from the moment you enter. Our commitment to excellent customer service extends beyond our doors - we aim to make a positive impact on the world around us. Together, small things can make a big difference. Join us at Pizza Karma and experience the joy of eating globally, giving locally, and feeling good.
Key terms
- Franchise fee
$30k
- Employee discount
20% off initial fee for employees with at least two years of service.
- Conversion discount
20% off initial fee for qualified owners of fast-casual restaurants converting to Pizza Karma.
- Brand fund
1.0% of Net Sales
- Local advertising
1.0% of Net Sales
- Footprint
1,500 – 3,500 sq ft
- Area Development Agreement
$30k
- Veteran discount
20.0% off franchise fee — Reduced Initial Franchise Fee of twenty percent (20%) off the applicable initial fee for current U.S. military members and honorably discharged veterans.
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2024 filing).
Growth
- Total locations2
Franchised units open at year-end
- New openings2
Gross new units opened during the calendar year
- 1-year unit growth rate—
Net unit growth versus prior year
- 3-year unit CAGR—
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio2.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$450k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open8 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate6.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.