To whom are the improvement (build-out) costs paid 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, the recipient of payments for restaurant improvements (build-out) depends on the restaurant size. For a Beggars Pizza restaurant with 150 or fewer seats, the estimated cost for improvements ranges from $150,000 to $350,000, payable to a contractor. For a larger restaurant with more than 150 seats, the cost ranges from $250,000 to $400,000, also payable to a contractor. These payments are typically arranged and due before the restaurant opens.
The FDD notes that the cost of leasehold improvements depends on factors such as the site's condition and size, local contract work costs, and the restaurant's location. 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. Remodeling walls, ceilings, and floors, as well as renovations like electrical work, carpentry, and installing signage and HVAC systems, are included in the estimate. However, new construction costs are not included.
Prospective franchisees should carefully consider these build-out costs, as they represent a significant portion of the initial investment. It is advisable to obtain detailed quotes from multiple contractors and architects to ensure accurate budgeting. Additionally, franchisees should clarify with Beggars Pizza what specific items are covered under 'improvements' to avoid unexpected expenses during the build-out phase. Understanding these costs and payment structures is crucial for the financial planning of a new Beggars Pizza franchise.