What is the Development Fee for the Antioch Pizza Shop franchise, and what does it cover?
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 Development Agre
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 FDD, Antioch Pizza Shop requires a Development Fee for those seeking to develop multiple franchise locations. The Development Fee is calculated as the total of the initial franchise fees for each additional franchise to be developed after the first one. The exact dollar amount of the Development Fee is not specified in the excerpt. This fee is consideration for the Development Agreement itself.
Upon execution of the Development Agreement, the Development Fee is fully earned by Antioch Pizza Shop and is non-refundable. This is the case regardless of any conflicting provisions in any Franchise Agreement. It's important to note that no initial franchise fee will be due on the date of execution for any Franchise Agreement signed under the Development Agreement.
For a prospective multi-unit franchisee, this means that the Development Fee compensates Antioch Pizza Shop for granting the rights to develop multiple locations. The franchisee should carefully consider the non-refundable nature of this fee and the financial commitment required to fulfill the development schedule. They should also clarify the exact amount of the Development Fee with Antioch Pizza Shop, as the excerpt does not provide a specific figure.