FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Pizza Hut.
Based on 2025 FDD · 15 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Pizza Hut franchise shows an estimated initial investment of $462K – $2.1M. Reported owner economics show $22K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $25K franchise fee · 10.8% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
10-brand free summary pilot · report unlocked
Use this as a source-document screening summary: FDD investment range, royalty/ad burden, Item 19 economics, SBA repayment outcomes, unit movement, and comparable-brand context. Treat missing or low-confidence fields as diligence flags — not as blanks to ignore.
Pizza Hut requires a total initial investment of $462K to $2.1M (midpoint approximately $1.3M), with an initial franchise fee of $25K. The ongoing fee burden is 10.8% (6% royalty plus 4.8% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for Pizza Hut locations is $969K. The implied franchisee EBITDA is approximately $22K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 1.7% with a payback period of approximately 57.7 years.
Pizza Hut operates approximately 8 franchised units. The SBA 7(a) loan default rate of 15.4% is above the franchise industry average of approximately 9.4%, suggesting elevated financial risk for franchisees relying on debt financing.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2011-2025). 16 loans across 11 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Pizza Hut franchise costs $50,800-$304,000 to open with a $5,000 franchise fee. Updated for Yum
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FDD Item 7 breaks down every cost category required to open a franchise - from the franchise fee ...
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5 data-driven questions every Pizza Hut franchise buyer should ask.