What is included in Antioch Pizza Shop's pre-opening services?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, the practical expedient allows franchisors to account for pre-opening services as a single distinct performance obligation, which the Company has elected to adopt. These pre-opening services include the following (which the Company may or may not provide all of):
- Assistance in the selection of a site
- Assistance in obtaining facilities and preparing the facilities for their intended use, including related financing, architectural, and engineering services, and lease negotiation
- Training of the franchisee's personnel or the franchisee
- Preparation and distribution of manuals and similar material concerning operations, administration, and record keeping
- Bookkeeping, information technology, and advisory services, including setting up the franchisee's records and advising the franchisee about income, real estate, and other taxes about local regulations affecting the franchisee's business
- Inspection, testing, and other quality control programs
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the company may provide several pre-opening services to franchisees. These services are accounted for as a single performance obligation. The franchisor allocates the entire initial franchise fees to these pre-opening services.
The pre-opening services that Antioch Pizza Shop may provide include assistance in site selection, help with obtaining and preparing facilities (including financing, architectural, and engineering services, and lease negotiation), and training for the franchisee or their personnel.
Additionally, Antioch Pizza Shop may offer preparation and distribution of operations manuals, administrative guides, and record-keeping materials. They might also provide bookkeeping, IT, and advisory services, such as setting up records and advising on income, real estate, and local regulations. The company may also provide inspection, testing, and other quality control programs. However, the FDD states that Antioch Pizza Shop may or may not provide all of these services.