PMI
Real Estate & Property · Property Management
- Active units
- 397
- Royalty
- 7.0%
Franchised, year-end 2024
of weekly Net Sales
About PMI
Philip Morris International (PMI) is a leading international tobacco company, operating in Canada and across the globe. With a rich history dating back to 1847, PMI has evolved into a renowned company in the tobacco industry. PMI's headquarters are located in Lausanne, Switzerland. PMI's main products include an array of tobacco and nicotine-containing products. These include popular cigarette brands such as Marlboro, Parliament, and L&M, as well as reduced-risk products such as IQOS, a heat-not-burn device. The company is committed to leveraging science and technology to develop smoke-free alternatives and aims to replace cigarettes with smoke-free products over time. On a global scale, PMI operates in over 180 countries and has a significant market presence. The company has noteworthy subsidiaries, including Philip Morris USA in the United States and Rothmans, Benson & Hedges in Canada. PMI also has partnerships and joint ventures with various organizations to expand its reach and enhance its offerings. In terms of its market position, PMI has consistently been among the top tobacco companies globally. The company boasts a wide portfolio of leading brands and has a strong distribution network. PMI's focus on innovation and reduced-risk products has allowed it to differentiate itself from competitors and adapt to changing consumer preferences. PMI has experienced several major events and achievements throughout its history. One significant milestone was the introduction of IQOS, which has gained traction as a smoke-free alternative. This shift towards reduced-risk products reflects PMI's commitment to harm reduction and meeting the evolving needs of consumers. Currently, PMI continues to invest in research and development to advance its smoke-free product portfolio. The company is dedicated to enabling a smoke-free future and has set a target for smoke-free products to account for at least 50% of its net revenues by 2025. In conclusion, Philip Morris International is a global tobacco company with a rich history and a strong market position. It offers a diverse range of tobacco and smoke-free products and continues to innovate in pursuit of a smoke-free future. With its commitment to harm reduction and focus on science and technology, PMI is poised for continued growth and success.
Key terms
- Franchise fee
$65k
- Conversion program (existing property management companies)
Initial Franchise Fee may range from $0 to $64,900 based on gross monthly revenue over $5,000 from managed third-party properties
- E-2 Investor Visa pricing
For non-U.S. residents obtaining E-2 Visas for a US franchise, Franchise Fee is $90,000 plus a one-year Reserve amount
- Brand fund
2.0% of Net Sales
- Local advertising
1500.0% of Net Sales
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2025, 2026.
Growth
- Total locations406
Franchised units open at year-end
- New openings57
Gross new units opened during the calendar year
- 1-year unit growth rate1.8%
Net unit growth versus prior year
- 3-year unit CAGR3.9%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio1.1×
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$134k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open135 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate—
Percent of net sales paid to the franchisor
- 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.