Where are the estimated rental costs for 3 months included in the initial investment for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
15Additional Funds. We recommend that you have a minimum amount of money available to cover operating expenses, including rent, utilities and employee's salaries, for the first 3 months that the franchised restaurant is open. We cannot guarantee that our recommendation will be sufficient. Additional working capital may be required if sales are low or operating costs are high. These expenses are typically non-refundable. The estimate of additional funds comes from our experience in operating our own restaurants and the experience of our existing franchisees, related to average market size for our franchisees.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 12–17)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, estimated rental costs for the first three months of operation are included within the "Additional Funds" category of the initial investment. This category is detailed in Item 7 of the FDD.
The "Additional Funds" category is designed to cover operating expenses such as rent, utilities, and employee salaries during the initial months when the business is getting established. The FDD notes that the franchisor cannot guarantee that the recommended amount will be sufficient to cover all expenses. The amount needed could vary depending on factors such as sales volume and operating costs.
The estimated range for "Additional Funds" is between $100,000 and $200,000. This estimate is based on Monicals Pizza's experience in operating their own restaurants and the experiences of existing franchisees, considering the average market size for their franchisees. Prospective franchisees should carefully review this estimate and consider their local market conditions and projected sales to determine if they need to budget additional funds for the first three months of operation.