What does the estimated range of costs for Real Estate/Rent for a Monicals Pizza franchise include?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
2 Real Estate/Rent. You must lease or otherwise provide a suitable facility for the operation of the franchised restaurant. Typically, the facility will range in size from approximately 3,000 to 4,000 square feet. It is difficult to estimate lease acquisition costs or acquisition costs because of the wide variation in these costs between various locations. Lease costs will vary based upon square footage, cost per square foot and required maintenance costs. The low estimate is based on an assumption that you will have to pay a security deposit equal to one month's rent to lease the facility and is based on leasing a facility of 3,000 square feet. The high estimate is based on the assumption that you will have to pay a security deposit equal to 2 month's rent to lease the facility and is based on leasing a facility of 4,000 square feet at a higher cost per square foot. Some lessors may refund the security deposit if you cancel the lease before you occupy the premises. The estimated range of costs in this category only includes your costs to enter into a lease for the facility. Estimated rental costs for 3 months are included with the category "Additional Funds" (See Note 15 below).
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 12–17)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, the estimated cost for Real Estate/Rent ranges from $2,000 to $14,400. This range covers the costs associated with entering into a lease agreement for the restaurant facility. The FDD specifies that the facility size typically ranges from 3,000 to 4,000 square feet. The low end of the estimate assumes a security deposit equal to one month's rent for a 3,000 square foot facility, while the high end assumes a security deposit equal to two months' rent for a 4,000 square foot facility at a higher cost per square foot.
It's important to note that this initial investment range only accounts for the costs to secure the lease. The document explicitly states that estimated rental costs for the first three months of operation are included in the "Additional Funds" category, which is listed separately. This means that the $2,000 to $14,400 range does not cover the ongoing monthly rent payments.
Prospective Monicals Pizza franchisees should carefully consider the factors that can influence real estate and rental costs, such as the facility size, location, and local market conditions. They should also inquire with lessors about security deposit refund policies in case the lease is canceled before occupancy. Understanding these costs is crucial for accurately budgeting the total initial investment required to open a Monicals Pizza franchise.