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Below is an in-depth analysis and side-by-side comparison of Ledo Pizza vs Chicago's Pizza including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $126,250 - $442,000 | $87,300 - $173,100 |
Franchise Fee | $30,000 | $12,000 |
Royalty Fee | 6% | 4% |
Advertising Fee | 1% | - |
Year Founded | 1986 | 1979 |
Year Franchised | 1989 | 1981 |
Term Of Agreement | 5 years | 5 years |
Term Of Agreement | 5 years | 5 years |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/No | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 140 hours Additional Training: Ongoing | - |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform | Grand opening, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing | Co-op advertising, Ad slicks |
Operations |
33% of all franchisees own more than one unit Number of employees needed to run franchised unit: 40 Absentee ownership of franchise is allowed. |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | Yes | No |
Since 1955, Ledo has been making pizzas with a recognizable rectangular shape and thick-sliced pepperoni. Ledo's more than 40 franchise locations offer East Coasters several appetizers; soups and salads; pastas such as portobello mushroom ravioli and chicken and broccoli; fettuccine Alfredo; burgers; submarine sandwiches; calzones and desserts.
Robert McDonald enjoyed working in the pizza business. When he was suddenly terminated from his job with an Indiana pizza restaurant, he decided to start his own pizza chain. When Ron Epple, who had worked with McDonald as director of franchise training, heard what his old co-worker was up to, he asked to be part of it.
In 1979, the two founded Chicago's Pizza. At lunchtime, restaurants serve pizzas by the slice or in seven-inch rounds from counters and drive-thru windows. In the evening, customers can use the drive-thru window to pick up phone orders. Most of the locations also have dining rooms where customers can enjoy Chicago's 29-inch pizza.
The company has franchises in Indiana and Ohio. There is also a Chicago's Pizza location in Seville, Spain.