For Aw's Papa Ray's Pizza Restaurant, what is included in the leasehold improvements estimate?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
The cost of the improvements vary greatly depending upon the size, condition, configuration, and geographical location of the premises, local zoning and building ordinances, labor and material costs, and other economic factors.
This estimate includes the cost of an architect, if necessary, and contractors and building and decorating materials and supplies.
Your expense will be less if you can arrange for the landlord to cover some of the costs of leasehold improvements or if you can lease a site previously used for a restaurant facility and can suitably configure the site with limited renovations.
We highly recommend trying to secure a site that already is configured for a restaurant and that contains some existing kitchen fixtures and equipment.
The high estimate assumes that the leased space is a vanilla box.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the leasehold improvements estimate for a Papa Ray's Pizza Restaurant, which ranges from $30,000 to $60,000, includes the cost of an architect (if necessary), contractors, building materials, and decorating supplies. The actual cost can vary significantly based on factors such as the size, condition, configuration, and geographical location of the premises, local zoning and building ordinances, labor and material costs, and other economic factors.
Aw notes that franchisees may be able to reduce these expenses if they can negotiate for the landlord to cover some of the costs or if they lease a site that was previously used as a restaurant and requires limited renovations. Aw highly recommends securing a site already configured for a restaurant with existing kitchen fixtures and equipment to minimize leasehold improvement costs.
The high end of the estimate assumes the leased space is a vanilla box, meaning it is a basic, unfinished space requiring significant build-out. Prospective franchisees should carefully consider these factors and the potential for cost savings when evaluating potential locations for their Papa Ray's Pizza Restaurant.