What is the estimated range for additional funds needed when opening a Beggars Pizza restaurant?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Expense | Amount | Method of Payment | When Due | To Whom Payment is Made | |
|---|---|---|---|---|---|
| Additional Funds | $10,000 | $25,000 | As incurred | As incurred | Employees, suppliers, |
| (Note 8) | utility companies, etc. |
| Expense | Amount | Method of Payment | When Due | To Whom Payment is Made | |
|---|---|---|---|---|---|
| Additional Funds | $20,000 | $40,000 | As incurred | As incurred | Employees, suppliers, |
| (Note 8) | utility companies, etc. |
Note 8. These amounts are the minimum recommended levels to cover operating expenses, including employee salaries, for three months. However, we cannot guarantee that this amount will be sufficient. Additional working capital may be required if your sales are low or your fixed
costs are high. Franchise disclosure laws require us to include this estimate of all costs and expenses to operate your franchise during the "initial phase" of your business, which is defined as a three-month or longer period if "reasonable for the industry." We are not aware of any established longer "reasonable period" for the restaurant industry, so our disclosure covers a threemonth period.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 11–15)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the estimated additional funds needed to open a restaurant with 150 or fewer seats ranges from $10,000 to $25,000. For a larger Beggars Pizza restaurant with more than 150 seats, the estimated range is $20,000 to $40,000. These funds are intended to cover operating expenses such as employee salaries and supplier costs as they are incurred.
Note 8 of the FDD indicates that these amounts are the minimum recommended to cover operating expenses, including employee salaries, for three months. However, Beggars Pizza cannot guarantee that this amount will be sufficient. The document states that additional working capital may be required if sales are low or fixed costs are high.
The FDD also clarifies that franchise disclosure laws require Beggars Pizza to include this estimate of all costs and expenses to operate the franchise during the "initial phase" of the business, defined as a three-month period. Beggars Pizza is not aware of any established longer "reasonable period" for the restaurant industry, so their disclosure covers a three-month period. Prospective franchisees should carefully consider these estimates and consult with financial advisors to determine the appropriate level of additional funds needed for their specific circumstances.