What is the development fee required when signing a Development Agreement with Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | Who You Have to Pay |
|---|---|---|---|---|
| Development Fee* | $60,000 | Cashier's Check | Upon Signing Development Agreement | Us |
| Franchise Fee | $30,000 | Cashier’s Check | Upon Signing 1st Franchise Agreement | Us |
| --- | --- | --- | --- | --- |
| Other Expenditures* for | $462,550 | As Disclosed in | As Disclosed in | As Disclosed in |
| 1st business | to $1,088,400 | Preceding Table | Preceding Table | Preceding Table |
| TOTAL | $552,550 to $1,178,400 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 12–17)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a development fee of $60,000 is required when signing a Development Agreement. This fee is payable via cashier's check and is due upon signing the agreement with Monicals Pizza. The document also mentions that this example is based on signing a Development Agreement for the development of 5 Monicals Pizza restaurants.
This development fee is separate from the initial franchise fee for the first restaurant, which is an additional $30,000. The development fee contributes to the total initial investment, which ranges from $552,550 to $1,178,400, including other expenditures for the first business.
Prospective franchisees should note that the development fee is a one-time payment due when the Development Agreement is signed. It is essential to have the funds readily available in the form of a cashier's check to meet this obligation. Additionally, franchisees should review Item 5 of the FDD for more details on the calculation of the development fee.