Ledo Pizza
Ledo Pizza offers franchises selling pizza and other food products according to proprietary recipes and methods. Known for its quick service and variety of toppings, it operates in the fast-casual dining sector.
About Ledo Pizza
Ledo Pizza is an American pizza restaurant chain in the Mid-Atlantic and Southeastern United States headquartered in Annapolis, Maryland. Their first pizzeria was opened in Adelphi, Maryland, in 1955 on University Boulevard in Adelphi Shopping Center near the University of Maryland, College Park. The first franchise was granted to the Fireside Restaurant in Berwyn Heights, Maryland, in 1979. Fireside Restaurant no longer exists. There are now over 100 restaurants in Maryland, Virginia, West Virginia, North Carolina, South Carolina, Florida, New York City and Washington, D.C.
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Ledo Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The initial investment necessary to begin operation of a LEDO PIZZA® franchise business ranges from $206,250.00 to $672,500.00 [p.1]. This range includes up to $30,000 that must be paid to the franchisor or its affiliates.
What is the initial franchise fee?
The initial franchise fee is $30,000 and it is nonrefundable upon the execution of the Franchise Agreement [p.15, p.146, p.184]. This fee is capitalized and amortized over the term of the franchise agreement, which is usually five years [p.94, p.119].
What are the ongoing royalty and advertising fees?
The ongoing royalty and advertising fees are determined based on the establishment of a bookkeeping and record-keeping system conforming to the requirements prescribed in the Franchise Operating Manual [p.20]. If bimonthly Gross Sales reports are not provided, the franchisee may be subject to calculated fees using Estimated Gross Sales until actual reports are submitted [p.185]. These fees bear interest at a rate of 1.5% per month or the highest rate permitted by law in the state where the store is located, whichever is lower [p.185].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is usually five years [p.94, p.119]. The renewal of the agreement depends on your ability to achieve the Gross Sales Quota annually, as failure to do so may result in termination or refusal to renew by Ledo Pizza System [p.131].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot voluntarily, involuntarily, directly, or indirectly assign or otherwise transfer or encumber your franchise or its assets (including voting stock, securities convertible thereto, proprietorship, and general partnership interests) without the prior written approval of Ledo Pizza System. This includes transfers by will, declaration of trust, or operation of law. Additionally, any assignment must be approved by Ledo Pizza System, as stated in Paragraphs 35 (Assignment by the Franchisee) and 34 (Ledo Pizza's Approval of Assignment). [p.196]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.238]. Additionally, the franchisor has the right to terminate or refuse to renew the agreement if the franchisee fails to achieve the Gross Sales Quota annually [p.131]. The franchisor may also compete with you in your territory and can change its business model without your consent, which might require additional investments or harm your business [p.3].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for prospective franchisees. However, it mentions that all partners, shareholders, members, or investors must meet financial, management, and experience requirements established by Ledo Pizza System from time to time [p.196, p.158].
Do I get an exclusive or protected territory?
Yes, you are granted an exclusive territory, typically one mile around the site selected by you and approved by the company. However, this territory can vary based on factors like population density, geographic boundaries, etc. The franchisor also reserves the right to adjust your territory size if they deem it necessary for their best interests [p.31, p.41]. Additionally, while you have an exclusive territory, the franchisor may operate or grant a franchise in another location that overlaps with yours but will not be physically located within your one-mile radius [p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training before the opening of a franchise store, which generally lasts one to three weeks and is conducted at Ledo Pizza® locations. This training includes business and food service courses that may be offered by governmental agencies, third parties, or the franchisor itself [p.33]. Ongoing support may include additional training if required, though this is not specified in detail in the provided excerpts [p.38].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there are 116 franchised Ledo Pizza® restaurants in operation [p.56]. The FDD does not specify the number of closed or terminated franchises [p.8].
Does the franchisor share any financial performance or earnings information?
Ledo Pizza System does not make any financial performance representations other than the preceding one. However, if purchasing an existing outlet, actual records of that outlet may be provided upon request [p.57]. This isn't specified in the excerpts for new franchises.
What am I restricted to selling, and where must I buy supplies?
You are required to use specific supplies and materials provided by the franchisor, such as ingredients, packaging, and a POSitouch point of sale system with certain specifications [p.24]. You may sell products within your exclusive territory but are restricted from using alternative channels like the Internet, catalog sales, or telemarketing for orders inside or outside this territory without prior written approval [p.42].