When is the rent or real estate payment 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. | |
| 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 rent or real estate payment (excluding property purchase) is due before opening the restaurant. For a Beggars Pizza restaurant with 150 or fewer seats, the estimated rent or real estate costs range from $15,000 to $22,000. For a Beggars Pizza restaurant with more than 150 seats, these costs are estimated to be between $32,000 and $47,000.
It's important to note that the method of payment for rent or real estate is 'as arranged' with the lessor. This means the specific payment schedule and terms will be determined by the agreement you negotiate with your landlord. The FDD provides an estimate for the first month's rent, along with a security deposit calculated as two months' rent, assuming an annual rent between $17.00 and $25.00 per square foot.
As a prospective franchisee, you should carefully review the lease terms and payment schedule with your lessor. Factors such as the location, size, and condition of the property can influence the rent amount. Consulting with a real estate professional in your area is advisable to ensure you secure favorable lease terms for your Beggars Pizza restaurant. Understanding these costs and payment obligations is crucial for managing your initial investment and ongoing expenses.