To whom is the rent or real estate payment made for a Beggars Pizza franchise?
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 the purchase of the property, is made to the Lessor. 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 range from $32,000 to $47,000. These payments are typically arranged before the restaurant opens.
This means that as a prospective Beggars Pizza franchisee, you will be responsible for securing a lease agreement with a landlord (the Lessor) for the location of your restaurant. The amount you pay in rent will depend on factors such as the size of the premises, its location, and local market conditions. It is important to note that these figures do not include the purchase of the property itself, but rather the cost of renting or leasing the space.
Beggars Pizza estimates the first month's rent, including a security deposit, assuming an annual rent between $17.00 and $25.00 per square foot. The FDD advises consulting a real estate professional in your geographic area before purchasing a franchise. Lease costs can vary significantly based on square footage, cost per square foot, location, length of lease, age of the leased property, local market conditions, and zoning. Beggars Pizza Restaurants with fewer than 150 seats typically occupy approximately 3,500 square feet, while those with 150 or more seats typically occupy approximately 7,500 square feet of commercial space plus a parking area or garage.
Prospective franchisees should carefully consider these estimated costs and consult with real estate professionals to determine the actual rent expenses for their specific location. It is also important to factor in potential fluctuations in rent costs and to negotiate favorable lease terms to ensure the long-term financial viability of the Beggars Pizza franchise.