When are the improvement (build-out) costs due for a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Expense | Amount | Method of Payment | When Due | To Whom Payment is Made | |
|---|---|---|---|---|---|
| Improvements (build-out) | $150,000 | $350,000 | As arranged | Before opening | Contractor |
| (Note 3) |
| Expense | Amount | Method of Payment | When Due | To Whom Payment is Made | |
|---|---|---|---|---|---|
| Improvements (build-out) | $250,000 | $400,000 | As arranged | Before opening | Contractor |
| (Note 3) |
Note 3. The cost of leasehold improvements will depend on the condition and size of the site, the local cost of contract work, and the location of the Restaurant. The figures in the charts represent the estimated cost of hiring an architect to conform standard plans to the layout of the Restaurant and to engage a general contractor to adapt the Restaurant to meet our standards. The estimate includes the costs of remodeling walls, ceilings, and floors and other renovations including electrical work, carpentry work, and the purchase and installation of signage and HVAC systems. The estimate does not include new construction costs.
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 cost for leasehold improvements, which ranges from $150,000 to $350,000 for a restaurant with 150 or fewer seats, and from $250,000 to $400,000 for a restaurant with more than 150 seats, is due before opening. These payments are arranged with a contractor. Note 3 in Item 7 clarifies that these costs cover hiring an architect to adapt standard plans to the restaurant's layout and engaging a general contractor to meet Beggars Pizza's standards. This includes remodeling walls, ceilings, and floors, as well as electrical and carpentry work, and the installation of signage and HVAC systems. However, these estimates do not include new construction costs.
For a Beggars Pizza franchise with 150 or fewer seats, the estimated cost for improvements is between $150,000 and $350,000. For a larger restaurant with more than 150 seats, the estimated cost increases to between $250,000 and $400,000. These costs are paid to a contractor and are due before the restaurant opens.
It is important for prospective franchisees to understand that these figures are estimates and the actual costs can vary significantly based on the condition and size of the site, local labor costs, and the restaurant's location. As the FDD states, franchisees should consult with experienced professionals to develop a detailed business plan and financial projections to account for these potential variations.