What is the estimated range for real estate/rent costs for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Franchise Fee1 | 25,000 45,000 | Cashier's Check | At Signing of Franchise Agreement | Us |
| Real Estate/Rent2 | 2,000 14,400 | As Arranged | Before Beginning Operations | Lessor |
| Utility Deposits3 | 500 4,000 | As Arranged | Before Beginning Operations | Utilities |
| Leasehold | 25,000 | As Arranged | Before Beginning | Suppliers |
| Improvements4 | 400,000 | Operations | ||
| Furniture, Fixtures & | 275,000 | As Arranged | Before Beginning | Suppliers |
| Equipment5 | 365,000 | Operations | ||
| Initial Inventory6 | 20,000 | As Arranged | Before Beginning | Approved Suppliers, |
| 25,000 | Operations | Suppliers | ||
| Office Equipment & | 5,000 | As Arranged | Before Beginning | Suppliers |
| Supplies7 | 6,000 | Operations | ||
| Insurance8 | 7,000 15,000 | As Arranged | Before Beginning Operations | Suppliers |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
| ---------------------------------- | ---------------------------- | ---------------------- | -------------------------------- | -------------------------------------------- |
| Signage9 | 15,000 30,000 | As Arranged | Before Beginning Operations | Suppliers |
| Training10 | 5,000 10,000 | As Arranged | Before Beginning Operations | Suppliers |
| Grand Opening11 | 5,000 10,000 | As Arranged | First 3 Months of Operation | Suppliers |
| Dues & Subscriptions12 | 50 2000 | As Arranged | Before Beginning Operations | Suppliers |
| Licenses & Permits13 | 1,000 3,000 | As Arranged | Before Beginning Operations | Licensing Authorities |
| Legal & Accounting14 | 2,000 4,000 | As Arranged | Before Beginning Operations | Attorney, Accountant |
| Additional Funds15 | 100,000 | As Arranged | As Necessary | Employees, Utilities, |
| (3 months) | 200,000 | Lessor, Suppliers | ||
| TOTAL | $ 487,550 $ 1,133,400 |
NOTES
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).
3Utility Deposits. If you are a new customer of your local utilities, you will generally have to pay deposits in connection with services such as electric, telephone, gas and water.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 12–17)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the estimated initial investment for real estate/rent ranges from $2,000 to $14,400. This estimate covers the costs to enter into a lease for the facility, with the assumption that the franchisee will pay a security deposit. The low end of the estimate assumes a security deposit equal to one month's rent for a 3,000 square foot facility. The high end assumes a security deposit equal to two month's rent for a larger 4,000 square foot facility at a higher cost per square foot.
It is important to note that this range only includes the initial costs to secure the lease. The document specifies that estimated rental costs for the first three months of operation are accounted for separately under "Additional Funds". These additional funds are estimated to be between $100,000 and $200,000, which also covers other operating expenses like utilities and employee salaries.
The FDD also notes that actual lease costs can vary significantly depending on location, square footage, and required maintenance costs. Prospective franchisees should carefully research real estate options in their target market to get a more accurate estimate of potential rental expenses. Contacting local lessors will provide more specific information about security deposit requirements and lease terms.
Therefore, while the initial investment for real estate/rent is estimated between $2,000 and $14,400, franchisees must also budget for ongoing rental costs within the "Additional Funds" category. Due diligence in researching local real estate costs is essential for accurate financial planning.