How is the amount of the Technology Fee determined for an Antioch Pizza Shop franchise?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Technology Fee | As determined by us. Amount can be changed upon 60 days' notice. | As determined by us. | See Note 2 |
-
- We will determine how and for what purposes the technology fees will be used. The purposes may include covering our costs or paying fees to third party providers for technology development, maintenance, and usage for the franchise system, for subscription and license fees paid by us to provide you access to and use certain technology tools, and for related research and development conducted by us. Once implemented, we will not increase the monthly fee during the franchise term more than 10% per year.
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the Technology Fee is determined by Antioch Pizza Shop. The amount can be changed with 60 days' notice. Note 2 in Item 6 states that Antioch Pizza Shop will determine how and for what purposes the technology fees will be used. These purposes may include covering costs or paying fees to third-party providers for technology development, maintenance, and usage for the franchise system. It also includes subscription and license fees paid by Antioch Pizza Shop to provide franchisees access to and use certain technology tools, and for related research and development conducted by them.
Once implemented, Antioch Pizza Shop will not increase the monthly technology fee during the franchise term by more than 10% per year. This provides some predictability for franchisees in managing their ongoing expenses. The technology fee is in addition to other fees such as the Royalty Fee of 5% of gross revenues and the Marketing Services Fee of 1% of gross revenues.
Prospective franchisees should inquire about the current amount of the technology fee, how it is calculated, and what specific technology tools and services it covers. Understanding the value and necessity of these technology resources is crucial for assessing the overall cost and benefit of the franchise. It is also important to understand how the technology fee compares to similar fees charged by other franchises in the pizza restaurant industry.