Joel Libava
Here’s my Mod Pizza franchise review, including the Mod Pizza franchise cost.
Learn all about this hot pizza chain that started in Seattle, Washington.
The Mod Pizza Franchise: Who Are The Owners?
The owners, Scott and Ally Svenson, founded Mod in 2008. Their MOD Pizza franchising business features “Personalized products delivered superfast.”
Although no Mod Pizza locations are open near me (Cleveland), the vibe I get from the brand is a combination of “farm to table”, if that’s even possible, along with a touch of adding some good to the world.
From their website:
“We care deeply about sourcing superior, fresh ingredients with vibrant flavors, and remain committed to working with our partners on environmental impact, animal ethics, and fair labor practices.”
While not exactly original, if the company follows through on what they say is important to them, it’s a good thing. I just don’t know how much their customers care.
Think about it.
What do you look for in a pizza place?
Mod Pizza Franchise Cost
So, what is the cost for one Mod Pizza franchise?
Your total upfront investment for one Mod Pizza franchise will range $714,000 to $1,092,000
Franchise Fee: $30,000
Working Capital: $30,000 to $50,000
Royalty Fee: 5.0%
Royalties: 5% of store’s weekly revenue
Marketing Fee: 2.5% of store’s weekly revenue
Local Marketing Fee: Minimum of 2% of revenues
The franchise agreement is 10 years in length.
Now that you you the Mod Pizza franchise cost, let’s go the next item you need to know if you want to become a franchisee.
What Makes The Mod Pizza Franchise Different
For one, their pizzas are made on demand (MOD).
That means if you become a Mod Pizza franchisee, your hungry customers will have the ability to choose from 9 individually sized pizzas that can be customized with over 40 toppings and 8 sauces. And your customers get any combination for one price.
Here’s their menu, courtesy of Pinterest.
Another thing I find interesting, especially since it’s not hidden away someplace on their high-quality website, is a bold series of statements about who they hire.
“MOD welcomes people:
Who want an uplifting environment for their first job
Who have a positive attitude and make an immediate impact
Who’ve faced traditional barriers to employment
Who live with Intellectual and Developmental Disabilities (IDD)
Who identify as LGBTQ
Putting people first starts with our hiring practices.
We’re proud to provide jobs to people in our communities who face extraordinary challenges when it comes to finding employment.”
I’m impressed.
Role Of The Franchisee In The Operation Of The Business
According to their Franchise Agreement, if an “entity” buys the franchise (as opposed to an individual), that entity must have a minimum of 5 years of multi-unit restaurant management experience.
And if you are purchasing a Mod Pizza franchise as an individual, you (as a MOD Operator) are expected to, during the entire period you serve as the MOD Operator, devote your full time and best efforts to the supervision, conduct and operations of the Franchisee’s Restaurant.
How many Mod Pizza locations are open?
Over 500 and growing.
The Franchise King’s Review Of Mod Pizza: Does Mod Pizza Serve Beer?
Mod Pizza franchisees serve beer and liquor.
But doing so will increase your cost to buy and own a Mod Pizza franchise business.
From the Mod Pizza FDD:
“You must secure a license to sell beer and wine at your Restaurant. The difficulty and cost of obtaining a beer and wine license, and the steps for securing the license, vary greatly from area to area. If your actual out-of-pocket costs of obtaining a liquor license for your Restaurant exceed $25,000, we may waive this requirement at our sole discretion.”
So if you’re cool with selling beer and wine, and the associated liabilities, Mod Pizza offers this additional high-margin income opportunity most pizza franchises don’t.
Another item I noticed?
The company isn’t necessarily looking for single restaurant operators.
From their franchising website:
“Rather than develop a large network of franchisees, we decided early on that a small network of partners would better accomplish our goals and create a more cohesive brand.
If you’re in a State where MOD exists, chances are we already have a comprehensive plan to grow that entire state. If you’re in a state without a MOD, and you’d like to learn more, we’d love to hear from you.”
Translation: they’re looking for big area developers.
Finally, and I find this troubling, especially in an age where email marketing is so successful, according to information I found on their current FDD, “The Franchisee acknowledges that the Franchisee is prohibited from collecting the contact information of customers of the Restaurant including, but not limited to, such customers’ e-mail addresses and telephone numbers.”
Translation: corporate collects your customers data…and you have no control of it. That’s seems harsh.
Franchisee Profits
The Mod Pizza franchise doesn’t provide Financial Performance Representations (FPR’s) in Item #19 of their FDD.
And even if they did, I wouldn’t state the numbers here. Why?
Because it’s always best to contact existing franchisees to get the current numbers. Plus the numbers don’t matter much if it ends up that the franchise you’re investigating isn’t right for you.
As a matter of fact, I don’t care if the franchisor discloses franchisee sales and earnings figures or not. Why?
Because they’re averages, and most aspiring franchisees look at the higher earnings numbers, anyway. Then they make the mistake of using them to make a buying decision and end up being disappointed that they didn’t hit the high-end of the earnings spectrum. Don’t do that!
Instead, talk with a lot of franchisees and ask them about their individual earnings, time to break-even, and other things that are important to you.
Note: if you’d like to get specific, proven research tips and techniques you can use right away to get the facts you need about any franchise you’re interested in, grab my Franchise Research Guide right now. I Guarantee you’ll become a smarter, better informed franchise buyer!
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Summary: The Mod Pizza Franchise Review From The Franchise King
If you’re seriously looking into food franchise ownership, have deep pockets, and you fancy owning and operating a pizza restaurant, the Mod Pizza franchise opportunity may be worth a look.
Moreover, if you’re interested in developing a large, multi-unit operation, that could potentially involve owning the rights to an entire state…or at least part of one, Mod Pizza should be on your list of prospective franchises.
Why?
Because they have room to grow.
In addition, they offer something pretty unique, product-wise.
Finally, if you’re enthusiastic about serving the freshest food available, and are picky about where it comes from, owning one or several franchises of Mod Pizza is potentially right up your alley.
What I’m Hearing
I found it a bit challenging to find a lot of recent reviews of their food.
That said, the reviews I did find were mostly good.
Additionally, I did run into a few less than desirable comments about their App. Those included the fact that customers can’t “double” their toppings, even though they could do so in-person, and a few other minor quirks.
From Google Play:
“This app needs work. My scenario every time: I have a base set of toppings and sauces I like but like to change it up a little each time. I click re-order on my previous order and then I get a little pencil button to edit it. Should be simple enough as to what happens next right? You should be sent to the screen where you customize your pizza and then see the previous selections and can modify if desired – unfortunately you get a blank slate like it’s a new pizza and have to start over. Fix it!”
And here are a few comments I found online (Facebook) about the food.
“I’ve been there a few times now (my daughter introduced it to me), and I REALLY like it! The pizza and salad are great with plenty of toppings.”
(The Mod Pizza Super-Shroom Pizza Pie)
“The past couple times we went to mod it was meh… like technically it’s edible. Our pizzas the other day our pizzas were burned and were the driest saddest looking pizzas ever. It’s really just not worth how much it costs anymore and i started learning how to make pizza dough at home. Its way easier than it looks!”
Finally, they do have a sizeable and fairly engaged following. For example, their Facebook page has 230,394 fans!
The Verdict
Becoming the owner of a Mod Pizza franchise requires a lot of capital and seemingly a commitment to own and operate several franchise locations.
So if you’re looking to become a multiple-unit franchisee, and you’re looking to get involved with food service, you may want to take a look at Mod Pizza.
My Rating: 3 Crowns
Note: never base your yes or no decision on the purchase of a franchise solely on a franchise review. Instead, you need to base your decision on the facts you’ve found, your budget, and your determination to succeed as the owner of the most powerful business system ever created, the franchise.
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