Pizza Karma franchise
2024 filing · September 10, 2024Growing
Pizza Karma at a glance
An Indian-inspired pizza restaurant cooking pizza, wraps and wings in tandoor ovens. At the end of 2023 there were 3 Pizza Karma locations in the US, 2 franchised and 1 company-owned.
The business
- Franchisor
- Karma Franchise LLC
- The company that sells the franchises
- Franchisor based in
- Plymouth, Minnesota
What you pay
- Cost to open
- $317K–$582K
- Fee, build-out and opening working capital
- Franchise fee
- $30,000
- Paid once, when you sign
- Royalty
- 6%
- 6% of gross sales; a $1,500 monthly minimum applies if the restaurant isn't open within 12 months
- Brand fund
- 1%
- 1% of gross sales, paid monthly; it can rise to 2%
- Renewal fee
- $10,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 3
- Franchised and company-owned
- Franchised
- 2
- Company-owned
- 1
- Change in 3 years
- +2
- Franchised locations, 2021–2023
- States
- 1
- Most in Minnesota
From Karma Franchise LLC’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Pizza Karma among all franchises with the same figure.
| Figure | Pizza Karma | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $449,625 | Costs more than 59% of franchises |
| Franchise feePaid once, when you sign | $30,000 | Lower than 72% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 3 | Fewer than 78% of franchises |
How much a Pizza Karma franchise costs
Opening one Pizza Karma costs an estimated $317,250 to $582,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($120,000 to $225,000) and equipment ($75,000 to $160,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $24,000 | $30,000 | |
| Rent and Security Deposit | $12,000 | $16,000 | |
| Leasehold Improvements | $120,000 | $225,000 | |
| Equipment | $75,000 | $160,000 | |
| Furnishings and Fixtures | $15,000 | $30,000 | |
| Décor | $6,000 | $12,000 | |
| Architectural and Design Fees | $7,500 | $12,500 | |
| Initial Technology Expenses | $2,000 | $3,500 | |
| Signage | $3,500 | $7,000 | |
| Initial Inventory | $7,500 | $12,500 | |
| Smallwares | $5,000 | $7,500 | |
| Initial Training Expenses | $4,500 | $9,000 | |
| Grand Opening Advertising | $3,000 | $7,500 | |
| Licenses and Permits | $1,500 | $6,000 | |
| Professional Fees | $750 | $1,500 | |
| Insurance | $3,500 | $4,750 | |
| Office Supplies | $500 | $750 | |
| Miscellaneous | $1,000 | $1,500 | |
| Additional Funds – For Initial 3 Months of Operation | $25,000 | $35,000 | |
| Total | $317,250 | $582,000 |
Source: Karma Franchise LLC, 2024 filing, page 20
Pizza Karma franchise fee
The franchise fee is $30,000. You pay it when you sign the franchise agreement.
Source: Karma Franchise LLC, 2024 filing, page 13
Royalty and ongoing fees
| Royalty | 6% of gross sales; a $1,500 monthly minimum applies if the restaurant isn't open within 12 months. |
|---|---|
| Brand or marketing fund | 1% of gross sales, paid monthly; it can rise to 2%. |
| RENEWAL FEE | $10,000 |
| LOCAL ADVERTISING EXPENDITURE | At least 1% of Gross Sales. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Karma Franchise LLC, 2024 filing, page 14
Other fees as filed, from pages 14–15. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Pizza Karma does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Karma Franchise LLC, 2024 filing, page 53
- Estimate Estimated yearly sales per location
- $610K–$1.1M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Pizza Karma compares
Of the 122 pizza franchises on this site, Pizza Karma is the 51st cheapest to open and the 100th largest by number of locations.
| Figure | Pizza Karma | Typical pizza brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $317K | $349K | $222K |
| Cost to open, high end | $582K | $787K | $477K |
| Franchise fee | $30K | $30K | $40K |
| Royalty | 6% | 5% | 6% |
| Brand fund | 1% | 1.9% | 2% |
| US locations | 3 | 26 | 21 |
| Shares earnings figures | No | 63 of 122 | 2,147 of 3,352 |
Typical is the median across the 122 brands in pizza franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 0 (0) | 3 | 0 | 0 |
| 2022 | 0 (0) | 2 | 0 | 0 |
| 2023 | 2 (+2) | 1 | +2 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: pizza franchise costs and franchise failure rates.
Source: Karma Franchise LLC, 2024 filing, page 54
Where Pizza Karma locations are
At the end of 2023, Pizza Karma had locations in 1 state. The most are in Minnesota.
- Minnesota3
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Minnesota | 2 | 1 | 3 |
Source: Karma Franchise LLC, 2024 filing, page 55
Who owns Pizza Karma?
Pizza Karma franchises are sold by Karma Franchise LLC.
From Karma Franchise LLC’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Karma Franchise LLC, 2024 filing, litigation on page 13, bankruptcy on page 13
Pizza Karma filings
The figures on this page come from Karma Franchise LLC’s 2024 filing, issued September 10, 2024, on record with the Minnesota Department of Commerce.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | September 10, 2024 | Minnesota | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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