Slicing up the cost

Like hometowns across the country, every franchise is different. We factor in a wide spread of information, including the condition of the premises, the amount of construction performed by the landlord, geographic areas, and your capabilities when determining final investment costs.

Below, we’ve compiled a comprehensive list of variable investment costs to help in your decision making.

 

Type of Expenditure
Amount
Method of Payment
When Due
To Whom Payment Is To Be Made
Initial Franchise Fee
Initial Franchise Fee
$30,000
Lump Sum
Upon signing the Franchise Agreement
Pizza Inn
Real Estate
Real Estate
Varies
As arranged
As arranged
Seller or Landlord
Architectural Design Services
Architectural Design Services
$7,500 to $15,000
As arranged
As arranged
Independent Architects and Engineers
Leasehold Improvements
Leasehold Improvements
$126,000 to $337,500
As arranged
As arranged
Independent Contractors / Landlord
Fixtures, Equipment, Decor & Signage
Fixtures, Equipment, Decor & Signage
$160,000 to $270,000
As arranged
As arranged
Approved Vendors
Smallwares
Smallwares
$20,000 to $26,000
As arranged
As arranged
Approved vendors
Opening Inventory
Smallwares
$12,000 to $30,000
As arranged
As arranged
Norco & Other vendors
Other Pre-Opening Expenses
Other Pre-Opening Expenses
$5,000 to $15,000
Cash
As arranged
Various Payees
Initial Training
Service providers
$15,000 to $22,000
Cash
As incurred
Service providers
Pre-Opening Marketing
Pre-Opening Marketing
$7,500
Cash
As incurred
Contractors and other vendors
Register or Point of Sale System
Register or Point of Sale System
$17,000 to $25,000
Cash
As incurred
Contractors and other vendors
Additional Funds – 3-6 months
Additional Funds – 3-6 months
$20,000 to $30,000
Cash
As needed
Various payees
Total ……………………….
$415,000 to $793,000 (does not include real estate costs)

NOTE: Refer to Item 7 of the Franchise Disclosure Document for more detailed information.

 

Other Fees

Type of Fee
Amount
Due Date
Remarks
Royalty
Royalty
4% of Gross Sales
Postmarked on Tuesday and payable on Friday of each week on sales for the week ending on the preceding Sunday
“Gross Sales” means the total gross revenues from cash and credit sales of all food and beverages, whether consumed on or off the premises, less applicable sales taxes.
Pizza Inn Advertising Plan (“PIAP”)
Pizza Inn Advertising Plan (“PIAP”)
1% of Gross Sales
Payable monthly (2)
Local Advertising
Local Advertising
At least 5% of Gross Sales
As arranged with us and advertising suppliers
Cooperative Advertising
Cooperative Advertising
As determined by the local co-op; typically between 2% and 5% of Gross Sales
Payable on the 20th day of the next month
Transfer Fee
Transfer Fee
$7,500 transfer fee
Upon signing transfer agreement
Renewal Fee
Renewal Fee
25% of then-current initial franchise fee
Upon signing renewal franchise agreement
The renewal fee is equal to 25% of the then-current franchise fee and is due to us in full upon renewal of your Franchise Agreement.
Additional training
Additional training
We do not currently charge you a tuition fee for such additional training; however, we reserve the right to do so in the future.
On demand
You are responsible for the costs of travel, meals, and accommodations for Pizza Inn employees or for your employees if attending training at our facility.
Audit/Inspection Fee
Audit/Inspection Fee
Cost of audit or inspection
On demand
Late Payment Fee
Late Payment Fee
$100
On demand
The late payment fee may be assessed on any amounts that are not paid when due.
Interest on late payments
Interest on late payments
The lower of 1.5% per month or highest applicable legal rate for open account business, royalty payments, advertising contributions
After due date and cure period, if any
Indemnification
Indemnification
Varies with circumstances
On demand
Products and supplies
Products and supplies
Varies
Upon purchase
Food Sample Testing and Inspection Fees
Food Sample Testing and Inspection Fees
Cost of testing, inspection
On demand
Relocation of Restaurant
Relocation of Restaurant
$500 plus our costs
Upon relocation and when services are rendered
Securities offering fee
Securities offering fee
$1,500
We must consent to any private placement or offering. You cannot make a public offering.
Insurance Placement Fee
Insurance Placement Fee
Our costs, including premiums, for placing insurance on your behalf if you fail to do so
On demand
Opening Deadline Extension Fee
Opening Deadline Extension Fee
$500
At the time that we grant the extension

NOTE: Refer to Item 6 of the Franchise Disclosure Document for more detailed information.