tableofcontentsmarcospizzapuertorico.com/marcospizza-franchise-report.pdf · 5...

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TABLE OF CONTENTS What Is Marco’s? .......................................................................................................................... 4

The fastest-‐growing pizza franchise in the U.S. ............................................................................ 4

Our philosophy ........................................................................................................................................... 6

How Is Marco’s Different From Its Competitors? ............................................................. 9

Quality pizza is our biggest concern ................................................................................................. 9

The Taste of Italy .................................................................................................................................... 12

The Marco’s Story ...................................................................................................................... 15

What does it mean to be “authentic Italian?” ............................................................................. 15

What Are the Startup Costs? .................................................................................................. 19

Franchisees can invest with confidence ....................................................................................... 19

How Do I Finance My Marco’s? ............................................................................................. 22

A Day in the Life of a Marco’s Franchisee .......................................................................... 24

From dough-‐making to mopping up, here’s how one franchisee’s day looks .............. 24

How Much Can I Make? ............................................................................................................ 30

How Big is the Pizza Industry? .............................................................................................. 34

Pizza as a fast-‐food alternative ......................................................................................................... 37

How does Marco’s compete? ............................................................................................................. 40

Do I Need Restaurant Experience? ...................................................................................... 42

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Marco’s training, support and business model eliminate the need for restaurant

experience ................................................................................................................................................. 42

Passion required ..................................................................................................................................... 44

Who Makes a Good Franchise Owner? ............................................................................... 46

The key to Marco’s success ................................................................................................................ 46

What Territories are Available? .......................................................................................... 52

Get in at the right time ......................................................................................................................... 52

Site selection ............................................................................................................................................. 52

Meet the Management Team ................................................................................................. 55

Joining the Marco’s family .................................................................................................................. 63

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WHAT IS MARCO’S?

The fastest-‐growing pizza franchise in the U.S.

In the $40 billion per year U.S. pizza industry, Marco’s stands out.

Fed up with the lack of good-‐quality delivery pizza, Marco’s founder, Pat

Giammarco, sought to create an authentic Italian pizza — an artisan pie

created with the fresh dough and the highest quality ingredients

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delivered to your home in about half an hour. Delivery pizza is a highly

competitive industry, and he believed if people could get a better-‐tasting

pizza for the same price they usually pay, they would keep coming back.

Thirty years and several hundred franchises later, Marco’s has become

one of the top five delivery pizza franchises and is giving the bigger

delivery pizza brands a serious run for their money.

What makes Marco’s unique is the dedication to producing the best

delivery pizza money can buy. Customers may order a delivery or takeout

pizza because it is inexpensive and convenient, but that doesn’t mean

they want something that doesn’t taste great. At Marco’s, we believe a

delivery pizza can be as good as an artisan pizza from a gourmet pizza

shop and still be convenient and affordable.

For instance, dough is made fresh daily in every store using our specially

formulated flour. Our sauce is made from tomatoes developed and grown

especially for Marco’s. The 100% real cheese that blankets every pizza is

always fresh, never frozen. And you’ll find our team members chopping

fresh vegetables daily and using premium meats for toppings.

Marco’s is an affordable luxury. The difference? While other national

chains deeply discount and compete over price point, Marco’s competes

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on quality and authenticity.

The other pizza chains do business like McDonald’s, Burger King and

Wendy’s and appeal to a more price-‐sensitive customer. Marco’s

resembles Five Guys Burgers and Fries – still offering a fast and

inexpensive meal but one that is much higher quality. We may charge a

little bit more, but like a Five Guys burger, our pizza is worth it.

If you’re passionate about quality and want to join a well established and

rapidly growing brand, Marco’s may be right for you.

Our philosophy

Consistency, authenticity and quality. These aren’t just buzzwords in

the company’s mission statement but the lifeblood of the brand that

pumps through the veins of each franchisee in the system. They’re the

not-‐so-‐secret keys to our success.

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Founder Pasquale “Pat” Giammarco was born in Italy and came to

America with his family as a little boy. His father ran restaurants, and it’s

something Pat gravitated toward as a young man in Toledo, Ohio.

He wanted to make the kind of fresh, artisan pizza he remembered from

his childhood. Giammarco wanted to serve a pizza he could be proud of, a

pizza with integrity. That meant honoring his Italian heritage by creating

every pizza with the freshest quality ingredients available. In 1978,

Marco’s authentic Italian pizzas quickly became a hit, and he grew a chain

of pizza stores serving communities in Indiana, Michigan and Ohio.

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In the mid-‐2000s, it was president and CEO Jack Butorac who saw the

opportunity to take Marco’s to the next level as a high-‐quality pizza

franchise. He felt pizza lovers deserved something better tasting than

cardboard and he knew a Marco’s pizza was what the market was

missing. He became a consultant for Marco’s in 2004, and he purchased

the franchise rights to Marco’s that same year.

With three decades overseeing the national expansion of restaurant

chains with YUM! Brands, Chi-‐Chi’s and Fuddruckers, Jack had the vision

and the know-‐how to take Marco’s from a regional favorite to the fastest-‐

growing pizza chain in the country.

We wouldn’t dream of selling a second-‐class product. Some Marco’s

franchisees started as managers or executives with other national pizza

brands. But when it came time to invest their own money in a product

they believed in, they chose Marco’s. It was an integrity issue. If you were

to attend one of our many franchisee conferences, you would hear their

passionate commitment to product quality and the total customer

experience.

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HOW IS MARCO’S DIFFERENT FROM ITS COMPETITORS? Quality pizza is our biggest concern

If you asked 100 people what their favorite pizza was, you’d probably get

a hundred different answers. But if you let 100 people sample Marco’s

specialty pizzas alongside its competitors, the majority of them would

choose Marco’s.

When we hired the Proctor & Gamble Test Kitchen to conduct a four-‐

month study with focus groups, 72% of people who tried Marco’s pizza

said they’d purchase it again — more than twice the intent to repurchase

of the other pizza delivery franchises the kitchen tested.

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“If you serve a great tasting pizza, the business will follow,” says Cameron

Cummins, Marco’s vice president of Franchise Marketing and Recruiting. “In

our industry, you are only as good as your last pizza and our customers

repeat their purchases from us because our pizzas are always delivered

quickly and taste better than other options.”

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The business world is starting to take notice:

ü Marco’s is now the fastest growing pizza company in the

country.

ü Marco's was ranked No. 104 on Entrepreneur magazine's

prestigious Franchise 500 list in 2014.

ü Franchise Business Review included Marco's on its annual Top 200,

a list of the best systems for franchisee satisfaction.

ü AllBusiness ranked Marco’s its No. 6 Allstar Franchise System for

2013, based on its top rating for strong financial performance.

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The Taste of Italy

Founder Pasquale “Pat” Giammarco spent his early childhood in Italy,

where people used only the best, freshest ingredients available. Pat

wanted his own brand of pizza to be made in the same authentic Italian

way. Here are four reasons Marco’s pizza is so much better than the

others’:

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1. The Dough. Our pizza crust isn’t just frozen in some factory and

shipped to hundreds of stores for efficiency’s sake. We make the

dough fresh in-‐store every day from premium spring wheat flour,

specially filtered water and high quality yeast. After analyzing the

type of flour that works best for our pizza in our ovens, we found

Minnesota-‐grown spring wheat, with its higher protein content,

produces the best-‐tasting crust.

2. The Sauce. From a recipe developed by Pat and his father, our

sauce packs a punch of flavor. The sauce originally included three

types of tomato — one each for taste, color and texture. From there,

growers developed an organic hybrid that included the best

qualities of all three tomatoes, grown in California just for Marco’s.

All our sauce is made from these specially grown tomatoes, and a

proprietary spices are blended into the sauce daily in the store.

3. The Cheese. Among the top 25 pizza chains, few use fresh cheese.

Most ship a frozen cheese substitute, called ‘cheese for pizza,’ to

their stores. We use a secret blend of three fresh cheeses from

Wisconsin and Iowa to blanket our pizzas, giving our pizza a

distinct flavor. Its as good as the best gourmet pizza you can buy in

any town and rare on a delivery pizza.

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4. The Toppings. We use only premium, thick-‐cut and top quality

meats, including several types of pepperoni and our own meatball-‐

sized sweet Italian sausage. Our veggies are always chopped fresh

in our stores. As for how many toppings we use, you need only feel

the heft of a Marco’s pizza box to understand that we place as many

toppings on our small pizza as our competitors use on their large

sizes.

We pay attention to quality in our other menu

items, too, from our CheezyBread and Cinna

Squares to our wings, salads and subs. Marco’s is

an affordable luxury, and customers get the

value. Marco’s costs a couple of bucks more than

the other guys, but our customers know we’re

worth it.

Think about it. For about $4 a person, you get a mass-‐produced, “fast

food” quality pizza. For about $5 a person at Marco’s, you get an authentic

Italian pizzeria-‐quality product. Which would you rather have?

That’s why we’re growing.

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Our existing stores have experienced same-‐store sales increases

almost every quarter since 2004. More and more customers seem to be

making the same decision you would make.

THE MARCO’S STORY What does it mean to be “authentic Italian?”

Marco’s founder Pasquale “Pat”

Giammarco understands better than

most what makes for an authentic

Italian pizza. It’s not about a certain

thickness of crust or a particular

combination of toppings; it’s about using the best, freshest ingredients

available. It’s about making something you’d be proud to serve to your

children or your mother. Simply put, it’s about celebrating good food with

people you love. That’s the beauty of a delivery pizza – in a busy and

hectic world, a family can slow down and spend time enjoying each

other’s company.

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He was just 9 when his family moved from Italy to make a new home in

Toledo, Ohio, in 1966, but Pat always remembered the wonderful food he

grew up with in his native country.

“In Italy, they take pride in what they serve,

whether you go to a restaurant or to someone’s

house. In Europe, if they don’t like your food,

they’ll throw it back in your face,” says Pat.

His father made a career in the restaurant

business in the U.S., and Pat would grow up to

follow in his footsteps. In 1978, he opened his

own first Marco’s. He had expanded to 112 restaurants by 2004 when he

first met our current CEO and President Jack Butorac. Jack, who had

decades of experience packaging food franchises and bringing them to

market nationally, had a much larger vision. Jack started out as a

consultant and then bought the franchise rights to Marco’s.

With an eye toward national expansion, Jack pulled together an

impressive team of managers, many with decades of food franchise

experience at brands like Domino’s, Little Caesars and Papa John’s. The

team understood not only how to grow a franchise brand that delights

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customers but also how to build a profitable business model for

franchisees.

Business has been booming ever since, and today there are hundreds of

stores in the United States and three countries, and it’s still growing by

leaps and bounds. One of the keys to our success is the combination of the

best ingredients with a passion for making a great pizza, every time.

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“Besides the freshness and the quality, there’s a bit of an art to making sure

it’s prepared properly, baked properly, packaged properly and serviced

properly,” says Pat. “When you put it all together, that’s why we beat our

competitors. You can’t just lower your prices. That gets them in the door one

or two times, but if they’re not happy with the product, they’re not going to

come back.”

The idea behind Marco’s was to produce a consistently high-‐quality pizza,

something customers will keep coming back for. It’s one of the things Jack

spotted when he first checked out Marco’s in 2004.

And it has to be good enough for someone with an authentic Italian

heritage to be proud of.

“I eat pizza almost every day,” says our founder. “I’m proud to serve my

pizza to anyone who comes here from Italy.”

Even so, pizza has become a quintessentially American food.

“I think Americans love pizza — and burgers and hot dogs and tacos and

chicken. I don’t think people will ever get tired of pizza. Whoever does a

better job of making it will outsell the others.”

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WHAT ARE THE STARTUP COSTS?

Franchisees can invest with confidence

On average, the startup cost for a Marco’s franchise is $350,000.

Here’s how it breaks down:

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Our minimum criteria for new franchisees:

ü $100,000 in liquid assets. This includes anything besides home

equity that can be converted to cash within 30 days. Retirement

accounts such as a 401K or IRA can be considered.

ü Net worth of $150,000

ü Strong credit

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HOW DO I FINANCE MY MARCO’S?

Marco’s is an approved franchise on

the Small Business Administration

National Registry, which is accessible

to all SBA commercial lenders.

Among the financing options:

ü MFS Leasing. This is an internal

leasing company put together by a

group of investors and available to

franchisees in Indiana, Ohio and

Pennsylvania.

ü Marcos Capital. Another internal company has funds available for

startup for certain candidates.

ü 401k rollovers. This option is sometimes paired with another form

of financing to meet the down payment requirements.

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ü Other sources of financing to facilitate other needs, such as

expanding or upgrading POS systems.

ü Cash. Several people are coming into our system from other

concepts, large franchisees in some cases. This may be the best

option for certain candidates. Marco’s will help candidates decide

how much cash to leverage.

ü SBA. This is the primary way our franchisees secure their funding.

ü Buyouts. If someone buys an existing Marco’s, different financing

options are in place.

ü Refinancing existing debt. This option can come into play if

someone is buying an existing franchise.

Business success is often a function of good timing, and Marco’s time is

now. We are looking for experienced and talented franchisees who want

to capitalize on this timing by getting in while Marco’s is experiencing

tremendous forward momentum.

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Take the time now to fill out a “request for information.” After you fill out

the contact form, one of our Franchise Development Managers will reach

out to you.

A DAY IN THE LIFE OF A MARCO’S FRANCHISEE

From dough-‐making to mopping up, here’s how one franchisee’s day looks Although his Franklin, Tenn., store doesn’t open until 11 a.m., franchise

owner Stuart Field likes to get going around 9 a.m. He starts out his day

from his home office, checking email, corresponding with his accountant

and working on his budget.

Afterward, he drives to work with a goal of being at the store by 9:30 or

10 a.m. He keeps that time flexible to allow himself a chance to do a little

marketing along the commute.

“On the way, if I notice something new going on, I might stop and introduce

myself,” Stu says. A growing slice of Marco’s revenue comes from

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fundraisers, school lunch programs, catering and other non-‐residential

sales. As a Marco’s franchisee, Stu is visible and known in his community,

and networking helps his sales.

One recent day, he noticed the opening of a new hotel in the

neighborhood. “I introduced myself to the manager, dropped off menus and

coupons, gave the employees a deal on ordering pizza,” he says. The visit

paid off — guests now order delivery pizza and the staff recommends

Marcos for catering.

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Once he’s in the store, his team starts prepping for the lunch rush. Stu

employs an average of 10-‐15 team members and 4-‐6 drivers. In addition,

he has a store manager, which makes it possible for him to have normal

working hours. He and his manager almost always work the rush hours

together and stagger other times of the week.

The team cuts up fresh vegetables and sets out bins of premium meats,

fresh cheeses and the newly sliced vegetables along the assembly table.

Fresh dough balls prepared the

afternoon before are waiting in

a special proofing cabinet,

which keeps the humidity and

temperature at just the right

levels.

When orders come in from

walk-‐ins, telephone calls or the website, team members flatten a dough

ball using a dough sheeter, which helps spread out the dough, then hand-‐

toss it to make a perfect crust.

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They then ladle on Marco’s sauce and add the toppings.

Once a pizza is ready, it’s popped onto the conveyor belt for a 6-‐minute

ride in the oven at 425 degrees, the perfect time and temperature for a

perfect pie. Orders are stacked in warming carriers for delivery drivers to

whisk out the door. “Our goal is to be out the door in 19 minutes,” Stu

says. Other team members are working the counter, taking orders and

sometimes directing customers to the adjacent small dining area, where

Stu recently added new seating. During lunch, this helps increase sales

because so many office workers prefer to eat outside rather than order a

pizza. Because he can make a pizza so quickly, his customers can get in

and out in less than 45 minutes.

“People are very time-‐crunched during lunch, and the conception is it will

take 15 to 20 minutes. People that know us know we’ll have it ready in 10

minutes,” Stu says.

The lunch rush dies down around 2 p.m., and Stu and his team spend the

next three hours doing prep work. They prepare Marco’s special tomato

sauce and chop fresh bell peppers, onions and tomatoes. They make a

new batch of dough, adding bags of special spring wheat flour to a large

mixer with just the right amount of filtered water until the giant dough

hook brings the batch to the right consistency.

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The dough is dumped out onto a large

wooden prep table. Workers use pastry

knives with an expert eye, cutting away

the perfect amount to be patted into a

ball that’s placed on a pan and stacked

in a warm place to rise. After rising,

each ball of dough is punched down,

brushed with oil and covered with

plastic wrap, it sites in the proofer,

taking 8-‐12 hours to rise and will be ready to be made into the perfect

pizza pie the next day.

Dinner picks up just before 5 p.m. — or a little later in the summertime.

Everyone stops whatever he or she is doing to handle the rush that

typically lasts until around 8:30 p.m.

Because each Marco’s location has a territory that only includes a 10-‐

minute or less delivery time, drivers make multiple trips and often meet

or exceed the half-‐hour delivery time goal.

“That’s the nice thing about this business,” says Stu. “You know when you’re

going to be busy.”

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After the rush and handling whatever late orders come in, there’s

cleaning up and restocking. The store closes at 10 p.m. Sunday through

Thursday and at 11 p.m. on Friday and Saturday so it can accommodate

late night orders and catering jobs.

Throughout the day, the phone rings with customers placing orders, and

more often than you might expect, just call to compliment the staff on

how great the pizza is and say thank you for how quickly it was delivered.

“When I first opened, the phone would ring after we delivered a pizza,” said

Stu, a 20-‐year veteran of the pizza industry. “I was expecting it to be a

customer complaining because we made a mistake, but shockingly, they

called to say how much they loved the pizza. In fact, in our opening week,

we received over 70 positive phone calls and almost no complaints. It’s a

great business to own.”

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HOW MUCH CAN I MAKE?

Marco’s offers something unique in the pizza franchise segment — a

chance to get in on the ground floor.

If you want a chance to run your own franchise with the fastest-‐growing

pizza chain in the country, we have the experience to help our franchisees

succeed.

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Franchise Business Review included Marco’s in its Top 200 ranking in

2014. The ranking evaluates franchise systems for franchisee satisfaction

based on interviews with hundreds of owners with more than 350

companies.

Consider this breakdown from Item 19 of our Franchise Disclosure

Document:

OPERATING RESULTS

Charts 1 and 2 below provide the average Net Royalty Sales of the 212

Franchised Stores and 27 Company-‐Managed Stores which were open for

business for 52 weeks in our 2011 fiscal year. The Net Royalty Sales

figures after coupons and discounts for the Franchised Stores are based

upon unaudited royalty reports supplied by franchise owners. Included in

Chart 1 are the specific results for MPI, our largest independently-‐owned

franchisee with 16 Franchised Stores.

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Chart #1 – Net Royalty Sales of Franchised Stores – 2011

Chart #2 – Net Royalty Sales of 27 Company Managed Stores – 2011

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Chart #3 - Statement of Typical Expenses for Company Managed Stores at Average Volume Sales

The costs presented in Chart 3 below are the actual averages of the costs

incurred by the 27 Company-‐Managed Stores that were open during the

entire 52-‐week period ending December 25, 2011. The operating data for

these Stores were re-‐stated to a common format. Revenues and expenses

were eliminated which did not directly relate to the operation of Marco’s

Pizza Stores, or the determination of Store earnings before interest,

income taxes and depreciation and amortization. Some cost categories are

omitted in order not to mislead you as these cost categories are highly

dependent upon factors beyond our ability to explain.

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HOW BIG IS THE PIZZA INDUSTRY? Pizza as a fast-‐food alternative

Although pizza has its roots in Italy, it’s so beloved by Americans that it

has become as iconic as burgers and fries. Who eats pizza?

According to a Gallup poll, almost everyone.

Because of its inexpensive price, pizza has become as mainstream as fast

food for time-‐ and money-‐crunched customers used to eating on the fly.

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Pizza is a $40 billion a year industry, and PMQ Pizza Magazine estimates it

will continue to grow, particularly worldwide. Its popularity shows no

signs of slowing down. Citing Technomic’s Pizza Consumer Trend Report,

About.com reported 68% of consumers order carryout pizza at least once

a month, and 45% order pizza for dine-‐in service monthly or more often.

The potential for earnings is huge.

The prevalence of home delivery changed the pizza industry in the 1970s

and 1980s. Now, there’s room for a new trend in the industry: the

authentic Italian artisan pizza. And Marco’s is on the leading edge of that

trend.

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How does Marco’s compete?

Pizza is a family favorite, and consumers show no signs of tiring of it.

What they can tire of is pizza that’s mass-‐produced in pieces and shipped

out frozen to individual stores for assembly and sale. At Marco’s, every

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pizza is made by hand from fresh ingredients. And while artisan foods

made by independent operators are often threatened by fluctuating food

prices, Marco’s is able to offer real value to its customers through the

power of purchasing in large quantities. For $20-‐$30, you can feed a

family of four at Marco’s.

With pizza’s popularity still on the rise, many national pizza chains have

crowded the market. At Marco’s, however, there’s opportunity to get in on

the ground floor. We have hundreds of stores open today, with more than

1,000 stores in development.

Even during tough economic times, when people tend to buy fewer luxury

items, pizza remains a strong value. Pizza is a convenient, affordable

luxury.

Because of Marco’s dedication to high-‐quality ingredients, we continue to

distance ourselves from our competitors. Why does this matter?

Regardless of the product or industry, high quality is always a long-‐term,

sustainable niche. Quality never goes out of favor with customers. Marco’s

customers can immediately taste the difference, and they’re hooked.

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DO I NEED RESTAURANT EXPERIENCE?

Marco’s training, support and business model eliminate the need for restaurant experience We love to recruit franchisees with prior food experience – that can be a

real asset. Most people are surprised to discover that some of our top-‐

producing franchise owners had

no prior food experience. We

want people who love our

culture and pizza and are

passionate about running a

successful business that

customers enjoy.

Marco’s will train you in every aspect of making high quality pizza and

running a successful franchise. The restaurant business is fast-‐paced and

fun but it isn’t for everyone. You have to train, develop and manage a staff,

manage lunch and dinner rushes and there are many moving parts. It’s

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not for everyone. But if you are willing to learn, Marco’s can offer you the

potential for long-‐term sustainable income.

New franchisees will spend about six weeks in a Marco’s University pizza

store, learning how to make the dough from scratch, how much sauce to

put on each pizza, how much cheese is used in toppings. If the franchisee

isn’t quite ready at the end of six weeks to run his own operation, he may

spend another two weeks in the training store to build his skills and his

confidence.

The key to Marco’s success is consistency, and the key to consistency is

having excellent systems in place to make sure that every pizza, every

sandwich, every salad tastes as good as it should. A piece of CheezyBread

will taste the same in Toledo, Ohio, as it does in Nashville, Tenn. A Cinna

Square will have as much cinnamon in Austin, Texas, as it does in

Huntington, W. Va.

The SBA reports that fewer than 25% of businesses survive 15 years or

more. We’ve been in business more than twice that long.

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Passion required Our staff is dedicated to making

sure you’re a success. If you make

money, we make money. It’s as

simple as that. That’s why we have

area representatives in your

region that you can reach out to

anytime for questions and

support. That’s why we have a

very accessible corporate staff

based in Toledo, Ohio, that is constantly working on ways to make

Marco’s a more profitable business.

We can teach you how to make the dough, stretch the crust and bake the

pizzas. We can teach you how to read your profit-‐and-‐loss paperwork. We

can teach you how to market your store in your neighborhood, endearing

yourself to every school, home and business within that three-‐mile ring

around your store.

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What we can’t teach you? Passion. But if you come in with a winning

attitude, that’s what matters most. The reality is, people with restaurant

experience have to learn the Marco’s way of doing things just like

someone with no retail food history.

Aside from the requisite skills, experience and capital, the best predictor

for your success is your passion for quality.

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WHO MAKES A GOOD FRANCHISE OWNER?

The key to Marco’s success “Almost half of our franchisees were consumers first; 100% of the people in

our organization are in our organization because they love our product,”

says Cameron Cummins, Marco’s vice president of Franchise Marketing

and Recruiting. “If somebody’s on the fence, the first question we ask them

is if they’ve had the pizza. If they say no, we direct them to the nearest

Marco’s.”

Almost half our franchisees came in thinking they were going to spend

$25 on a family meal and left investing $350,000 in a successful franchise.

Think how many restaurants and retail chains you eat and shop in. How

many times have you thought, “I am ready to shift gears and do this for a

living”?

The ideal Marco’s franchisees are:

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PASSIONATE. Says CEO and President Jack Butorac, “I’d rather have

someone who has the passion, because that person’s going to make good

money.”

Business-‐minded. We can teach you the pizza business. In fact, we will

teach you everything about the Marco’s methods of making pizza during

six to eight weeks in a certified training store. But it helps to have a

background in management, even if it’s not in the restaurant business.

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Community-‐oriented. Like any successful business, Marco’s thrives

when its owners are involved in their communities. Marco’s owners work

with their local schools, other businesses, sports teams and more.

Whether it’s donating to charities, working with Little League or getting

involved with churches or Scouts, there are unlimited ways to make your

Marco’s franchise an integral part of the place you live in. A business that

supports its community, after all, will get community support in return.

Team players. Marco’s owners are a tight, cohesive bunch who regularly

get together at conferences and share best practices.

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Marco’s Franchise Reviews

“I need to take pride in what I do. Handing the product across the counter,

it’s got to be something I’m putting my name behind. When you look at

other pizza franchises, not that they’re horrible, they just don’t have the

quality. That’s what attracted me to Marco’s —the quality.”

— Stuart Field, former Little Caesars management and current

Area Representative and store owner, Franklin, Tenn.

“I chose Marco’s Pizza for the type of pizza, the brand quality. Coming from

another brand for 25 years, my favorite saying to my employees was,

‘Would you sell that to your mother?’ I didn’t feel comfortable selling that

brand to my mother anymore.”

— David Knoles, multi-‐unit owner

“Site selection, it’s funny. With the previous chain I was with, site selection

was, ‘I like this spot,’ they said, ‘OK,’ and you took it. With Marco’s, it’s

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totally the opposite … We do everything we can to try to find the right

locations … One of the best things with Marco’s when it comes to the growth

opportunity is really availability. Marco’s is growing like a rocket … Some of

the other chains, there’s no growth left. Once they get known, once they

start doing well, people gobble up everything and there’s just nothing left …

With Marco’s there’s a lot of availability, there’s a lot of growth and there’s

a lot of exclusive areas.”

— Glenn Ajmo, Area Representative and multi-‐unit owner in Florida

“We had literally quit eating pizza for years. I bet we had not eaten a pizza

in 10 years. When we retired from the military, our friend opened a Marco’s

in Georgia. We tried it and were blown away. We were just literally wowed

by the pizza. It was so good, we ordered it every week. When we started

looking at business opportunities, Marco’s popped immediately to mind.

Obviously we have a great brand.”

— Laurel Wilkerson, Multi-‐Unit Franchisee of the Year

2012, Oklahoma

“The training is one of the most important things we do for a new

franchisee. If things are off a little bit, you can’t go store to store and you

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can’t make sure everything is done perfectly every time ... I think that’s why

it’s simple to bring someone with a little bit of experience or a lot of

experience into the pizza business, because we have good processes in place

that get someone to make our product the exact same way every single

time, which is the most important thing.”

— Nick Costanzo, Colorado

“The thing I like the best about Marco’s, you’ve got to have a good product

and you’ve got to have a good image, but I think the timing is perfect. The

company is large enough that it’s had a few growing pains and it’s worked

its way through those things and it’s positioned itself to grow. But it’s small

enough that there’s a lot of opportunity.”

— Rick Poston, multi-‐unit owner, Georgia

“The hardest part of the business, which is great product — it’s done, it’s

easy. They have a great recipe. The hard part — the service, the image — I

was already good at that ... It was just a simple decision.”

— Tim Brown, multi-‐unit owner, Alabama

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WHAT TERRITORIES ARE AVAILABLE?

Get in at the right time

With hundreds of stores in the

U.S., Marco’s is a proven

concept with wide customer

appeal. However, we aren’t so

big that we no longer have

prime exclusive territories

available. Many great regions

for multi-‐unit development still

exist.

Many areas still offer exclusive territories with a three-‐ or five-‐store deal.

Site selection The better the site, the better your sales. That’s why Marco’s works so

hard to find the best site for every single store. With some chains, site

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selection is merely a matter of the franchisee picking out a site they like

and the chain signing off on that. At Marco’s, things go a little differently.

We look for the ideal location for all Marco’s franchise stores, preferably

in a high-‐density suburban area. An end-‐cap or inline location within a

community shopping center with a supermarket or big box retail chain

works well.

The right location has:

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ü Good visibility. You can see the sign easily from the road.

ü Convenient parking. Customers can get in and out easily.

ü Easy access. Customers shouldn’t have to fight traffic to turn in.

ü Good tenant mix. Co-‐tenants should be complementary and drive

traffic.

ü Rooftops. We need a dense residential population.

ü 1,400-‐1,600 square feet. Marco’s is a smaller operation with low

overhead relative to other restaurant chains.

ü High traffic. Marco’s wants 20,000 cars driving past your location a

day, typical for retail and fast food locations.

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MEET THE MANAGEMENT TEAM

JACK BUTORAC

President/CEO

An industry veteran with more than three decades of experience turning

high-‐quality restaurants into thriving national chains, Jack purchased the

franchise rights to Marco’s Pizza in 2004 and became president and CEO

that same year. His vision is to create a lean corporate infrastructure

targeted toward aggressive growth. His favorite pizza is pepperoni and

sausage.

DAVE BLACK

Executive Vice President of Operations

Since 2006, pizza industry veteran Dave has overseen all aspects of store

operations for Marco’s. He spent 34 years with Domino’s in roles ranging

from day shift manager to president of the company; he was a multi-‐unit

Domino’s franchisee for 15 years. His favorite pizza is a toss-‐up between

pepperoni and sausage.

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CAMERON CUMMINS

Vice President of Franchise Marketing & Recruiting

Cameron, who has been with Marco’s in his current role since 2006,

developed marketing and sales processes to increase franchise leads for

brands including YUM!, Dunkin’ Donuts, Baskin-‐Robbins, Big Boy and Fast

Signs. He also ran his own marketing consulting firm and helped launch

the luxury automotive brand Lexus. His favorite pizza is bacon.

BRYON STEPHENS

Vice President of New Business Development

Bryon, who joined Marco’s in 2005, develops and executes the company’s

growth strategy, creates and manages franchisee recruitment campaigns

and oversees the logistics of new store openings, including real estate and

construction. His favorite pizza is pepperoni, sausage, onion and green

olives.

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JOE STEPHENS

Development Project Manager

Joe joined Marco’s in 2008 to provide guidance and resources during the

pre-‐construction and construction phases. The U.S. Navy veteran was

president of Boardwalk Café Inc. and also worked as a project manager

for a Florida homebuilding company. Joe’s favorite Marcos item is

CheezyBread.

LAUREN JOHNSON

Franchise Development Coordinator

Lauren joined the Marco’s family in 2009 as a receptionist/accounting

assistant and is now an integral member of the Development Team. She

also oversees the Marco’s intranet system. Lauren’s favorite pizza is

pineapple and bacon with extra sauce.

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JIM STRACHAN

Vice President of Franchise Operations

Jim oversees franchise operations and communication with area

representatives, employee training and site and equipment selection.

Previously, Jim was director of franchise sales for Yorkshire Global

Restaurants, the parent company of A&W and Long John Silver’s, and also

spent more than 19 years with Little Caesars. His favorite pizza is Italian

sausage and mushrooms.

STEVE HOZA

Regional Vice President

Before joining Marco’s in 2008, Steve was manager of Real Estate for CNG

Financials, where he planned site acquisition. He also has experience in

insurance and medical sales. His favorite Marco’s item is Cinna Squares.

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TOM ACHS

Regional Vice President

Tom oversees franchisee recruitment and store growth as well as

providing support to area representatives. Before joining Marco’s, Tom

helped execute hundreds of new store construction, renovation and

capital initiative projects with companies such as Domino’s, Starbucks

and Panera Bread. His favorite pizza is Pepperoni Magnifico.

DON VLCEK

Vice President of Purchasing

Don oversees and educates store operators on product purchasing,

distribution and pricing. He joined Marco’s 2007, after previously

working as a Domino’s executive and running his own business

consulting group. Don wrote an award-‐winning book, “The Domino

Effect.” His favorite pizza is Italian sausage.

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PETER WISE

Vice President of Marketing

Before joining Marco’s in 2007, Peter was CEO of the St. Vincent DePaul

Society, one of San Francisco’s largest non-‐profits active in the social

service sector. He also previously helped develop marketing and branding

strategies for such companies as FedEx, Ford Motor Company, E*TRADE,

Visteon and Chevron. His favorite pizza is Pepperoni Magnifico.

MIKE JAYNES

Vice President of Sales & Product Integrity

Mike manages the opening and promotion of new stores, product

research, development and testing, and online employee training

programs. He joined Marco’s in 1988 as a district manager. His favorite

pizza is pepperoni.

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KEN SWITZER

Vice President and CFO

With more than 30 years of experience in finance and management, Ken

has been with Marco’s for more than 20 years and has led development

efforts for administrative systems that have helped grow the company to

hundreds of stores.

DEBBIE ALLEN

Compliance Officer

Debbie, with Marco’s since 2004, previously worked for Molly Maid Inc.,

where she was responsible for franchise compliance and financing

assisting to new franchise owners. She also was director of Human

Resources for River City Petroleum in Sacramento, Calif.

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MARK SCIBIORSKI

Director Operational Training

Mark started with Marco’s as a Franchise Manager in 1998. Before that,

he was an International Franchise Representative for Little Caesars. He

was with that company for 10 years, holding a number of positions during

that time. His favourite pizza is White Cheezy with chicken.

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NEXT STEPS Joining the Marco’s family

By now, you know Marco’s is the pizza industry quality leader poised to

become the next big pizza brand over the next two years. Hopefully,

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you’ve also learned that we will not sacrifice quality for any reason,

because that’s what has made our stores so successful.

The next step is two-‐fold. Tell us more about yourself, and we will tell you

more about us.

First, fill out an application and review our executive summary. This will

prepare you for your first phone conversation with a Marco’s franchise

representative.

One of our franchise representatives or Area Developers will reach out to

you to set up an introductory telephone conversation, where we will

explore the possibility of a match.

Marco’s Franchising Philosophy

You can count on us to shoot straight and share what it takes to win as a

Marco’s franchisee without sugarcoating. We have a detailed

investigation process, which will help you determine whether or not

Marco’s fits what you are looking for.

In return, we are counting on you to shoot straight with us.

We look forward to a healthy, open and honest dialogue.

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