When are the additional funds needed for a Beggars Pizza restaurant?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
fewer seats:
| Expense | Amount | Method of Payment | When Due | To Whom Payment is Made | ||
|---|---|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 | Lump sum | When you sign your Franchise Agreement | Us | |
| Travel and Living Expenses During Training (Note 1) | $1,000 | $5,000 | As incurred | During training | Airlines, hotels, restaurants, etc. | |
| Rent or Real Estate (not | $15,000 | $22,000 | As arranged | Before opening | Lessor | |
| including the purchase of | ||||||
| property)(Note 2) | ||||||
| Improvements (build-out) | $150,000 | $350,000 | As arranged | Before opening | Contractor | |
| (Note 3) | ||||||
| Furniture and Fixtures (Note 4) | $5,000 | $50,000 | As arranged | Before opening or as arranged with vendors | Vendors | |
| Equipment (Note 4) | $75,000 | $150,000 | As arranged | Before opening or as arranged with vendors | Vendors | |
| Insurance (Note 5) | $5,000 | $15,000 | As arranged | Prior to opening | Insurance companies | |
| Signage | $5,000 | $25,000 | As arranged | Before opening or as arranged with vendors | Vendors | |
| Miscellaneous | $2,000 | $5,000 | As incurred | Before opening | Suppliers, utility | |
| Opening Costs | companies, etc. | |||||
| Opening Inventory | $5,000 | $7,500 | As arranged | Before opening | Us, our affiliates, or | |
| (Note 6) | approved suppliers | |||||
| Grand Opening | $10,000 | $10,000 | As arranged | Within 30 days | Distribution services | |
| Advertising | after opening | and media providers | ||||
| Computer Equipment and | $35,000 | $50,000 | As arranged | Before opening | Vendors | |
| Software (POS system) | or as arranged | |||||
| (Note 7) | with vendors | |||||
| Additional Funds | $10,000 | $25,000 | As incurred | As incurred | Employees, suppliers, | |
| (Note 8) | utility companies, etc. | |||||
| TOTALS | $343,000 to $739,500 | For a Beggars Pizza® Restaurant with more than 150 seats: |
| Expense | Amount | Method of Payment | When Due | To Whom Payment is Made | ||
|---|---|---|---|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 | Lump sum | When you sign your Franchise Agreement | Us | |
| Travel and Living Expenses During Training (Note 1) | $1,000 | $5,000 | As incurred | During training | Airlines, hotels, restaurants, etc. | |
| Rent or Real Estate (not | $32,000 | $47,000 | As arranged | Before opening | Lessor | |
| including the purchase of | ||||||
| property) (Note 2) | ||||||
| Improvements (build-out) | $250,000 | $400,000 | As arranged | Before opening | Contractor | |
| (Note 3) | ||||||
| Furniture and Fixtures (Note 4) | $75,000 | $200,000 | As arranged | Before opening or as arranged with vendors | Vendors | |
| Equipment (Note 4) | $125,000 | $175,000 | As arranged | Before opening or as arranged with vendors | Vendors | |
| Insurance (Note 5) | $14,000 | $50,000 | As arranged | Prior to opening | Insurance companies | |
| Signage | $5,000 | $25,000 | As arranged | Before opening or as arranged with vendors | Vendors | |
| Miscellaneous | $2,000 | $5,000 | As incurred | Before opening | Suppliers, utility | |
| Opening Costs | companies, etc. | |||||
| Opening Inventory | $5,000 | $8,000 | As arranged | Before opening | Us, our affiliates, or | |
| (Note 6) | approved suppliers | |||||
| Grand Opening | $10,000 | $10,000 | As arranged | Within 30 days | Distribution services | |
| Advertising | after opening | and media providers | ||||
| Computer Equipment and | $50,000 | $75,000 | As arranged | Before opening | Vendors | |
| Software (POS system) | or as arranged | |||||
| (Note 7) | with vendors | |||||
| Additional Funds | $20,000 | $40,000 | As incurred | As incurred | Employees, suppliers, | |
| (Note 8) | utility companies, etc. | |||||
| TOTALS | $629,000 to $1,080,000 | Except as otherwise described in the notes below, the tables above provide an estimate of the initial investment for a new Beggars Pizza® Restaurant. All costs listed in the table are estimates. Actual costs will vary for each franchise location. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 11–15)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, additional funds are needed 'as incurred.' For a Beggars Pizza restaurant with 150 or fewer seats, the estimated amount for additional funds ranges from $10,000 to $25,000. For a Beggars Pizza restaurant with more than 150 seats, the estimated amount ranges from $20,000 to $40,000. These funds are intended to cover expenses such as employee wages, supplier costs, and utility bills.
These additional funds are separate from the initial investment required to open the Beggars Pizza franchise. The FDD notes that franchisees should not expect to draw income during the startup phase, which can vary in length. Franchisees must have access to additional capital, whether through cash, a line of credit, or other liquid assets, to cover operating losses during the startup and development phase and beyond.
The amount of reserves necessary will vary depending on factors such as the restaurant's growth rate and success, local demographics and economic conditions, the presence of other Beggars Pizza locations, brand awareness, the franchisee's operational efficiency, and competition. Because these factors are highly variable and difficult to predict, Beggars Pizza recommends that prospective franchisees consult with an experienced accountant or financial advisor to develop a business plan and financial projections.
This approach is typical in the franchise industry, as franchisors generally cannot predict the specific financial circumstances of each franchisee. It is the franchisee's responsibility to adequately plan for and manage their finances to ensure the long-term viability of their Beggars Pizza restaurant.