When is the development fee paid to Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay a development fee if and when you sign a Development Agreement. The development fee is paid to us in a lump sum and is nonrefundable. The development fee is equal to $15,000 for each Monical's restaurant you agree to develop in addition to the franchise fee. The number of Monical's restaurants you will open will be determined before you sign the Development Agreement.
For example, assuming you agree to develop 5 Monical's restaurants, your initial investment will include a franchise fee of $30,000 for the first Monical's restaurant and a development fee of $60,000 for the remaining 4 Monical's restaurants to be developed in the future.
Each time you sign a Franchise Agreement for one of the additional Monical's restaurants, you must pay us $15,000 which is the balance of the discounted franchise fee for that franchise.
The development fee is calculated uniformly for all developers, but the amount of the actual fee will vary based on the number of Monical's restaurants you agree to develop.
Source: Item 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the development fee is paid when you sign a Development Agreement. The fee is a lump sum and is nonrefundable. The development fee is $15,000 for each Monicals Pizza restaurant you agree to develop.
For example, if you agree to develop 5 Monicals Pizza restaurants, your initial investment includes a franchise fee of $30,000 for the first restaurant and a development fee of $60,000 for the remaining 4 restaurants to be developed in the future. Each time you sign a Franchise Agreement for one of the additional restaurants, you must pay Monicals Pizza $15,000, which is the balance of the discounted franchise fee for that franchise.
The development fee is calculated uniformly for all developers, but the amount of the actual fee will vary based on the number of Monicals Pizza restaurants you agree to develop. This means that the more restaurants a developer commits to opening, the higher the initial development fee will be. However, this fee contributes to the franchise fee for each subsequent location.