What is the estimated range for insurance costs 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. All fees and payments described in |
this Item 7 are non-refundable unless otherwise stated or permitted by the payee. We do not offer financing for any part of the initial investment.
Note 1. The figures in the charts represent estimated pre-opening salaries of one employee during our three-week management training program. See Item 11 of this disclosure document for more information about our management training program.
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 cost for insurance ranges from $5,000 to $15,000 for a restaurant with 150 or fewer seats, and from $14,000 to $50,000 for a restaurant with more than 150 seats. These figures represent the estimated annual premiums for the insurance policies required by the Franchise Agreement, with the assumption that the franchisee will make deposits for one month's coverage.
The FDD notes that the actual cost of insurance can vary significantly based on several factors. These include the restaurant's location, the claims experience of commercial businesses in the area, and the franchisee's claims experience in other businesses they operate. This means that franchisees in areas with higher risks or a history of more insurance claims can expect to pay higher premiums.
Prospective franchisees should carefully consider these potential variations in insurance costs when planning their initial investment. It would be prudent to consult with insurance professionals to obtain accurate quotes based on their specific location and business history. This will help them develop a more realistic financial projection for their Beggars Pizza franchise.