What is the maximum estimated initial investment for a Beggars Pizza restaurant with more than 150 seats?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 total estimated initial investment for a restaurant with more than 150 seats ranges from $629,000 to $1,080,000. This investment covers various expenses, including the initial franchise fee, travel and living expenses during training, rent or real estate costs, leasehold improvements, furniture and fixtures, equipment, insurance, signage, miscellaneous opening costs, opening inventory, grand opening advertising, computer equipment and software, and additional funds for the first three months of operation.
The largest single expense within this initial investment is leasehold improvements, which are estimated to range from $250,000 to $400,000. Furniture, fixtures, and equipment represent another significant cost, with estimates ranging from $75,000 to $200,000 for furniture and fixtures, and $125,000 to $175,000 for equipment. The initial franchise fee is a flat $40,000, payable when signing the Franchise Agreement.
Prospective franchisees should note that these figures are estimates and actual costs may vary depending on factors such as location, the condition of the premises, and local market conditions. The FDD also emphasizes that these estimates do not cover any financing costs incurred by the franchisee or any other expenses beyond the initial opening. Beggars Pizza recommends that franchisees have additional funds available to cover operating expenses and potential losses during the start-up phase, and advises consulting with a financial advisor to develop a detailed business plan and financial projections.