What is the high estimate for Real Estate/Rent for a Monicals Pizza franchise based on?
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 Monicals Pizza's 2025 Franchise Disclosure Document, the high estimate for Real Estate/Rent is based on the assumption that a franchisee will have to pay a security deposit equal to 2 month's rent to lease a facility. This estimate also assumes the facility will be 4,000 square feet at a higher cost per square foot.
The document states that the estimated range of costs in this category only includes the costs to enter into a lease for the facility. It is important to note that estimated rental costs for 3 months are included in the "Additional Funds" category.
Prospective franchisees should carefully consider the size and location of their desired facility, as these factors significantly impact real estate and rent costs. It is also important to factor in the additional funds needed to cover the first three months of rent, as these are not included in the initial real estate/rent estimate.