How is the Development Fee for Antioch Pizza Shop calculated?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement. The initial franchise fee for the remaining Franchise Agreements to be developed under this Agreement shall be Thirty-Two Thousand Dollars ($32,000.00) for a Dine-In Restaurant or Take-Out/Delivery Restaurant Franchise and Twenty-Eight Thousand Dollars ($28,000.00) for an Express Restaurant franchise.
- 2.2 Upon the execution of this Development Agreement, you shall pay a fee ("Development Fee") calculated as the total of the initial franchise fees to be paid for each of the additional franchises to be developed by the Developer after the first franchise: ___________________________________________________ Dollars ($_____________.) The Development Fee is consideration for this
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the Development Fee is calculated as the total of the initial franchise fees for each additional franchise to be developed after the first franchise. The exact dollar amount is not specified in the excerpt but will be filled in the Development Agreement. This fee is consideration for the Development Agreement and is fully earned by Antioch Pizza Shop upon execution of the agreement, making it non-refundable.
In practical terms, this means that if a developer commits to opening multiple Antioch Pizza Shop locations, they will pay a Development Fee upfront. This fee covers the initial franchise fees for all locations beyond the first. For example, if a developer plans to open five locations, they pay the full initial franchise fee for the first location when signing that franchise agreement. The Development Fee then covers the initial franchise fees for the remaining four locations, paid upfront when signing the Development Agreement.
It's important for prospective developers to understand that this Development Fee is non-refundable. Even if the developer fails to open all the planned Antioch Pizza Shop locations, they will not receive a refund of the Development Fee. This represents a significant financial commitment and risk. The initial franchise fee for the remaining Franchise Agreements to be developed under this Agreement shall be Thirty-Two Thousand Dollars ($32,000.00) for a Dine-In Restaurant or Take-Out/Delivery Restaurant Franchise and Twenty-Eight Thousand Dollars ($28,000.00) for an Express Restaurant franchise. No initial franchise fee will be due on the date of execution under any Franchise Agreement signed under this Agreement.
Prospective developers should carefully consider their ability to meet the development schedule and their overall financial capacity before entering into a Development Agreement with Antioch Pizza Shop. They should also seek legal and financial advice to fully understand the implications of the non-refundable Development Fee.