What does the Development Fee for Antioch Pizza Shop represent?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
Multi-Unit Development Fee
If you are a Developer, you must sign the Franchise Agreement for your first Antioch Pizza Shop franchise and pay the initial franchise fee for the first franchise to be developed at the same time as you sign the Multi-Unit Development Agreement. In addition, you must pay a non-refundable Development Fee when you sign the Multi-Unit Development Agreement. The Development Fee is the total of the initial franchise fees that will be due for the additional Antioch Pizza Shop Businesses to be developed. The franchise fee for the additional franchises after the first franchise will be discounted by 20%, so the initial franchise fee paid for additional Dine-In Restaurant and Take-Out/Delivery Restaurants developed under a Multi-Unit Development Agreement will be $32,000, the initial franchise fee for additional Express Restaurants to be developed under a Multi-Unit Development Agreement will be $28,000.
For example, if you sign a Multi-Unit Development Agreement for 2 Dine-In or Take-Out/Delivery Restaurants, you will pay us $72,000 when you sign the Multi-Unit Development Agreement. If you sign a Multi-Unit Development Agreement for 5 Dine-In or Take-Out/Delivery Restaurants, you will pay us $168,000.
When you sign the Franchise Agreement for the additional franchises, a portion of the Development Fee will be applied against the initial franchise fee for the franchise, so no initia
Source: Item 5 — Initial Fees (FDD pages 12–13)
What This Means (2025 FDD)
According to the 2025 Antioch Pizza Shop Franchise Disclosure Document, the Development Fee is paid by developers who sign a Multi-Unit Development Agreement. This fee represents the total of the initial franchise fees that will be due for the additional Antioch Pizza Shop businesses to be developed. Essentially, it's a pre-payment for the franchise fees of multiple units, with a discount applied to each additional unit after the first.
For Dine-In and Take-Out/Delivery Restaurants, the initial franchise fee for additional franchises under a Multi-Unit Development Agreement is $32,000, which is a 20% discount from the standard $40,000 fee. For Express Restaurants, the discounted initial franchise fee is $28,000. As an example, if a developer signs a Multi-Unit Development Agreement for two Dine-In or Take-Out/Delivery Restaurants, they would pay Antioch Pizza Shop $72,000 upfront. This covers the full initial fee for the first restaurant ($40,000) and the discounted fee for the second ($32,000).
It's important to note that the Development Fee is generally non-refundable, although there is an exception if the franchisee decides to develop a different type of franchise with a lower initial franchise fee. However, the Development Fee is credited against the initial franchise fees when the Franchise Agreements for the additional franchises are signed, meaning no additional initial franchise fee will be due at that time. This arrangement incentivizes multi-unit development and provides Antioch Pizza Shop with upfront capital.
Prospective franchisees should carefully consider the number of units they plan to develop under a Multi-Unit Development Agreement, as the Development Fee is non-refundable. However, if they are committed to developing multiple units, this agreement can provide a cost-effective way to expand their Antioch Pizza Shop business.