2026 FDD Issued Mar 25, 2026, amended Oct 8, 2026 Minnesota Commerce (CARDS) Checked Nov 2, 2026
Pizza Hut Franchise Cost (2026)
A Pizza Hut franchise costs an estimated $846,000 – $2,130,000 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $25,000 initial franchise fee (Item 5) and covers this format: RBD and DBR Dine-In/Delivery/Carryout System Restaurants. Item 6 lists monthly service fee: 6% of Gross Sales, subject to the conditions below.
- Total investment
- $846K – $2.13MItem 7 source and qualifications
- Franchise fee
- $25KItem 5 source and terms
- Monthly Service Fee
- 6% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 4.75% of Gross SalesItem 6 conditions and fee bases apply
- Units (2025)
- 5,031Item 20 source and scope
- Franchise exit rate
- 4.1% / yrCalculated 3-year average; definition and source
What stands out about Pizza Hut
Exits now far outrun openings. Item 20 shows 55 franchised openings in 2025 against 313 exits, most of them restaurants that ceased operating, which left 4,956 franchised units at year-end. A footnote to the outlet tables reports a further run of franchised closures after year-end through mid-August 2026, a period the tables themselves do not cover.
Part of that decline is the franchisor buying restaurants back. After selling its Indiana and Kentucky restaurants to franchisees in 2023, it reacquired franchised units in both of the following years, and the company-owned table now shows restaurants in Louisiana, the Carolinas and Utah alongside Texas. Those buybacks count as exits from the franchised side even though most of them kept operating.
Advertising runs through the franchisees' own association. Item 11 says the fund contribution of 4.75% of Gross Sales is paid as dues to the International Pizza Hut Franchise Holders Association, whose Advertising Committee has directed national and local media under an agreement dating to 1975, and owners must vote against lowering the rate. Item 6 then adds a royalty of 6% of Gross Sales, a yearly restaurant technology fee and a charge on every digital order.
The Item 19 sales average of $972,864 covers mature dine-in, restaurant-based delivery and Delco units, but it leaves out the delivery-based and fast casual formats, and most of the restaurants counted fell short of it. On the cost side, building and site improvements are the largest Item 7 line and account for most of the spread in $846,000 – $2,130,000, a figure that excludes the price of land.
What are the initial franchise fees and financial requirements for Pizza Hut?
Item 5 lists an initial franchise fee of $25,000 for Pizza Hut. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF page 15): $25,000 for each System Restaurant, paid in full when you sign the Location Franchise Agreement and not refundable. The franchisor may raise it each year in line with the CPI. In its last fiscal year it waived the fee for existing franchisees enrolled in its ACE incentive program, which is now closed to enrollment.
Source: Pizza Hut 2026 FDD, Item 5, PDF p. 15.
This record lists no minimum net worth or liquid-capital requirement for Pizza Hut, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Pizza Hut franchise? (Item 7)
Source: Pizza Hut 2026 FDD, Item 7, PDF p. 20.
Item 7 of Pizza Hut’s 2026 Franchise Disclosure Document estimates the total cost to open one rbd and dbr dine-in/delivery/carryout system restaurants at $846,000 – $2,130,000. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Equipment | $150,000 | $300,000 |
| Opening Inventory | $4,000 | $8,000 |
| Smallwares | $15,000 | $50,000 |
| Building and Site Improvements | $619,000 | $1,651,500 |
| Land | Varies | Varies |
| Computer System | $15,000 | $30,000 |
| Computer System Training | $0 | $1,500 |
| Additional Funds (3 months) | $5,000 | $21,500 |
| Miscellaneous | $10,000 | $22,000 |
| Advertising | $0 | $16,500 |
| Start-up "Other" | $3,000 | $4,000 |
| Total | $846,000 | $2,130,000 |
Other formats
| Format | Total investment |
|---|---|
| Freestanding Delco Delivery/Carryout System Restaurants | $816,000 – $1,900,000 |
| Inline/Endcap Delco Delivery/Carryout System Restaurants | $670,000 – $960,000 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
Item 7 (PDF pages 20-23) prints four formats, all excluding real property. The RBD and DBR dine-in/delivery/carryout table's 11 priced lines add to its $846,000 to $2,130,000 total; land is listed as "Varies". The Freestanding Delco and Inline/Endcap Delco tables also add to their printed totals. The Fast Casual Delco (FCD) table prints $818,000 to $2,130,000, but its lines add to $818,000 to $2,105,000, so this record leaves that format out. Building and site improvements are the largest line in every format.
What ongoing royalties and fees does Pizza Hut charge? (Item 6)
Source: Pizza Hut 2026 FDD, Item 6, PDF p. 16.
Item 6 of Pizza Hut’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Monthly Service Fee | 6% of Gross Sales | Every period | 6.0% of Gross Sales, payable monthly by the 20th day of the next month. The Item 6 table adds "6.5% of Gross Sales under certain circumstances" and says the fee is not uniformly imposed; the Location Franchise Agreement (section 19.02) sets 6.0%. Where state law bars a fee on alcohol sales, the franchisor sets an effective rate to account for it (note 1). (Item 6, PDF p. 16) |
| Taxes | Varies | When it applies | Sales, property, excise, value-added and similar taxes levied on services or goods the franchisor provides, including taxes related to its collection of fees. (Item 6, PDF p. 16) |
| System Advertising Fund Contribution | 4.75% of Gross Sales | Every period | 4.75% of Gross Sales, due with the Monthly Service Fee. While the Advertising Committee Agreement is in effect, dues paid to the International Pizza Hut Franchise Holders Association (IPHFHA) are credited against it dollar for dollar. (Item 6, PDF p. 16) |
| IPHFHA Dues | Varies | When it applies | 4.75% of Gross Sales as set by IPHFHA, which you must join while the Advertising Committee Agreement is in effect. Credited to the System Advertising Fund contribution, so not an added cost on top of it. (Item 6, PDF p. 16) |
| Digital Innovation Fee | Varies | When it applies | Currently $0.41 per transaction conducted through a digital or other automated channel, paid to the franchisor or an affiliate. May rise after the 2026 fiscal year with committee approval or inflation (note 3). Not counted in this page's annual fee estimate because it depends on order count. (Item 6, PDF p. 16) |
| Restaurant Technology Fee | $2,950 per year | Every period | Currently $2,950 per year, billed monthly, payable to the franchisor or its affiliate Pizza Hut Connect, LLC. May rise after the 2026 fiscal year (note 3). (Item 6, PDF p. 16) |
| Dragontail Fee | $75 per month | When it applies | $240 one-time installation fee plus $75 per month per restaurant. Charging is temporarily suspended under the Dragontail Adoption Agreement, but the franchisor may start charging it. (Item 6, PDF p. 16) |
| Initial Training Costs | Varies | When it applies | $500 per person per week for additional or later trainees, plus your trainees' living and travel expenses. Training for the first Qualified Operator is included in the franchise fee. (Item 6, PDF p. 17) |
| On-Going Training and Assistance | Varies | When it applies | $50 to $150 per day plus the franchisor's travel and lodging; may rise by up to 50%. (Item 6, PDF p. 17) |
| Inspection and Testing Costs | Varies | When it applies | All costs of reviewing or approving a product or supplier you propose. (Item 6, PDF p. 17) |
| Audit | Varies | When it applies | Any deficiency plus a finance charge, plus audit costs if the deficiency is 2% or more. (Item 6, PDF p. 17) |
| Late Charges | Varies | When it applies | Currently 1.5% per month on late amounts; may rise to the maximum legal rate. (Item 6, PDF p. 17) |
| Unauthorized Closure | Varies | When it applies | 24 times the restaurant's average Monthly Service Fee for the prior calendar year if it closes without consent. (Item 6, PDF p. 17) |
| Relocation | Varies | When it applies | The franchisor's review costs; a new initial franchise fee may be due if the replacement restaurant does not open within 12 months. (Item 6, PDF p. 17) |
| Transfer Fee | Varies | When it applies | $2,500 plus $250 per restaurant transferred, plus the franchisor's outside counsel fees and expenses (note 4). (Item 6, PDF p. 18) |
| Renewal Fee | $12,500 | When it applies | $12,500 per restaurant when you sign the renewal agreement; may be raised to as much as $25,000. (Item 6, PDF p. 18) |
| Interim Operation Fee on Death or Disability | Varies | When it applies | The greater of twice the salary of the people the franchisor assigns or 10% of monthly Gross Sales, plus travel, lodging and meals (note 5). (Item 6, PDF p. 18) |
| Advances | Varies | When it applies | Repayment of any amounts the franchisor advances to third parties for you. (Item 6, PDF p. 18) |
| Indemnification | Varies | When it applies | Losses and expenses from indemnified claims (note 6). (Item 6, PDF p. 18) |
| Attorneys' and Experts' Fees, Court Costs | Varies | When it applies | The losing party in litigation pays; you also pay outside counsel fees for any amendment of the agreement (note 7). (Item 6, PDF p. 18) |
| Termination Damages | Varies | When it applies | Losses, lost profits and costs if the franchisor terminates for your default (note 8). (Item 6, PDF p. 18) |
| De-identification Costs | Varies | When it applies | Actual cost if the franchisor removes Pizza Hut identification after expiration or termination. (Item 6, PDF p. 18) |
| Third Party Corporate Restaurants Reward Program | Varies | When it applies | Dinova charges 9.5% on Dinova orders over $20 before tax; franchisees are enrolled automatically and may opt out by e-mail. (Item 6, PDF p. 18) |
| EPR Fees | Varies | When it applies | Reimbursement of extended producer responsibility fees resulting from your restaurant, plus compliance costs. (Item 6, PDF p. 19) |
Among the published restaurants & food records with comparable flat royalties, the median is 6%; Pizza Hut lists 6%. This is the site’s sample, not an industry-wide estimate.
Explore annual fees and payback assumptions
Start with the recorded Pizza Hut inputs, then enter your own operating costs and sales assumptions. The result is a scenario, not an FDD profit forecast.
Pizza Hut startup investment and modeled fees over 10 years
Item 19 does not supply an average or median sales figure suitable for this model, so we do not estimate annual fees in dollars. For every $100 of sales, an owner pays 10.8% in percentage fees , plus $2,950 a year in fixed fees. Estimate it with your own sales figure · Estimate your payback for Pizza Hut.
Item 20: Pizza Hut franchised outlet history
Source: Pizza Hut 2026 FDD, Item 20, PDF p. 59.
Item 20 Table 3 reports 4,956 franchised outlets at the end of 2025. The company-owned table reports a further 75 outlets. Our calculated average annual franchised exit rate is 4.1% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 5,302 | 155 | 157 | 5,300 | 3% |
| 2024 | 5,300 | 89 | 175 | 5,214 | 3.3% |
| 2025 | 5,214 | 55 | 313 | 4,956 | 6% |
Franchised units went from 5,302 to 4,956 over 3 years (-346).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Pizza Hut’s exit rate with other brands.
189 units changed owners in 2025.
Item 20 Table 3 totals (PDF page 59) match Table 1 (PDF page 53) and the company-owned Table 4 (PDF page 60): the 16 and 54 restaurants reacquired in 2024 and 2025 appear in both tables, and the franchisor sold 14 company restaurants to franchisees in 2023. A footnote says 275 more franchised restaurants ceased operations from December 30, 2025 through August 18, 2026. Years are fiscal years ended December 29, 2025 and December 30, 2024, and calendar 2023.
How much do Pizza Hut franchise owners make? (Item 19)
Source: Pizza Hut 2026 FDD, Item 19, PDF p. 52.
Item 19 of the 2026 FDD reports average Gross Sales, all Mature Franchised System Restaurants of $972,864 (Fiscal 2025 (ended December 29, 2025), 4,767 Dine-In/Red Roof, RBD and Delco franchised restaurants open at least one year; 2,071 (43.4%) exceeded the average). Pizza Hut’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (6% of Gross Sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every Pizza Hut Item 19 figure, with its period and sample.
Estimate your payback for Pizza Hut using Item 7 startup costs and Item 6 fee rules.
How to interpret Pizza Hut’s Item 19 figures and sample limits.
How long is the Pizza Hut franchise agreement term?
Source: Pizza Hut 2026 FDD, Item 17, PDF p. 46.
The standard Pizza Hut franchise agreement runs 10 years, with renewal terms of 5 years.
Item 17 (PDF page 46): the initial term runs until 10 years after the restaurant opens, followed by up to 2 consecutive 5-year renewal terms if you meet the conditions, which include a renewal fee, a general release and signing the then-current agreement.
How long does it take to open a Pizza Hut franchise? (Item 11)
Source: Pizza Hut 2026 FDD, Item 11, PDF p. 32.
Item 11 of the 2026 FDD states the time from signing the Location Franchise Agreement to opening: approximately 6 to 12 months.
Franchises with a similar investment range
These published records are selected by proximity to Pizza Hut’s $846,000 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Crumbl $849K – $1.47M Restaurants & Food
- Five Guys $928K – $1.38M Source review pending Provisional publication Restaurants & Food
- Blaze Pizza $757K – $1.3M Restaurants & Food
- 7 Brew $941K – $2.28M Restaurants & Food
- Paris Baguette $728K – $1.86M Restaurants & Food
- Tim Hortons $988K – $3.31M Restaurants & Food
Compare other restaurants & food franchises
Sources
Pizza Hut, LLC Franchise Disclosure Document, issued March 25, 2026, as amended October 8, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 15
- Item 6: cited PDF p. 16
- Item 7: cited PDF p. 20
- Item 19: cited PDF p. 51
- Item 20: cited PDF p. 59
- Agreement term (Item 17): cited PDF p. 46
Page references for Pizza Hut use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 2, 2026: Source check completed against the recorded FDD.
- November 2, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 25, 2026).
- November 2, 2026: Independently checked against the March 25, 2026 Minnesota FDD, as amended October 8, 2026: cover, Items 5, 6, 7, 11, 17, 19 and 20. Corrected the issue date and recorded the amendment date. Item 6 now lists all 24 rows (the draft had 7), and the suspended Dragontail fee is no longer counted as recurring. Removed the Fast Casual Delco format, whose printed high total does not match its lines. Added the opening time, renewal terms and source notes. Rewrote the analysis.
- October 8, 2026: Amendment date recorded for the source FDD.