What is the franchise fee for a second Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay a $45,000 lump sum franchise fee when you sign the Franchise Agreement. You pay a $30,000 lump sum franchise fee when you sign the Franchise Agreement for a second and subsequent
franchise. If you are a Monical's Pizza employee, you pay a lump sum franchise fee of $45,000, less $1,000 for every year of your employment with Monical's Pizza, with a minimum franchise fee of $25,000. Otherwise, the franchise fee is uniform for all franchisees.
We will refund 50% of the franchise fee you paid if we terminate the franchise for your failure to perform your pre-opening obligations under the Franchise Agreement. We do not give refunds under other circumstances.
Source: Item 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the franchise fee for a second franchise is $30,000. This fee is a lump sum payment due when signing the Franchise Agreement. The standard franchise fee for the initial franchise agreement is $45,000, making subsequent franchises $15,000 less than the original.
This reduced fee for additional franchises is a common practice in the franchise industry, incentivizing franchisees to expand their operations. However, it is important to note that this fee is non-refundable under most circumstances, except if Monicals Pizza terminates the agreement due to the franchisee's failure to meet pre-opening obligations, in which case 50% of the fee is refunded.
For Monicals Pizza employees, there is a different franchise fee structure. Employees pay $45,000, but receive a $1,000 reduction for each year of employment with Monicals Pizza, with a minimum franchise fee of $25,000. This employee discount does not apply to the second franchise fee, which remains at $30,000. This could be a significant benefit for long-term employees looking to transition into franchise ownership.