When are the improvement (build-out) costs due 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. |
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, or build-out, is due before opening the restaurant. For a Beggars Pizza restaurant with 150 or fewer seats, this expense is estimated to range from $150,000 to $350,000. For a Beggars Pizza restaurant with more than 150 seats, the estimated cost is between $250,000 and $400,000.
The method of payment for these improvements is "as arranged," meaning the franchisee will need to negotiate payment terms with the contractor. This could involve a payment schedule with installments due at various stages of the build-out, or a lump-sum payment due upon completion. It is important for prospective franchisees to discuss payment options and timelines with potential contractors to ensure they align with their budget and financing capabilities.
Given the significant investment required for leasehold improvements, it is crucial for franchisees to carefully manage this aspect of the initial setup. Obtaining multiple bids from qualified contractors, closely monitoring the progress of the build-out, and maintaining open communication with the contractor can help control costs and ensure the project stays on schedule. Franchisees should also factor in potential cost overruns and delays when planning their initial investment and financing needs.