Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2.0: Estimated Initial Investment for a Pita Pit Restaurant (2012 FDD)

by Franchise Chatter on September 24, 2012

in Franchise Earnings, Wraps Franchise

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(Ambrosio’s note:  Welcome to FDD Talk 2.0, a more comprehensive version of our flagship content, featuring not only the Item 19 financial performance representations of select franchises, but their estimated initial investment, unit growth, and other key items of their 2012 FDD as well.)

Highlights of The Pita Pit’s 2012 Franchise Disclosure Document – Part 1

Estimated Initial Investment for a Pita Pit Restaurant

1.  Initial Franchise Fee:  $25,000

2.  Initial Rent and Security Deposit:  $2,400 – $10,000

  • The initial start-up expenses include the first month’s rent and a security deposit equal to another month’s rent, both paid in advance. The space needed for the restaurant is estimated to be approximately 1,000-1,400 square feet. Rent will vary by location.
  • Pita Pit will provide guidance to you for converting a potential location into the restaurant.

3.  Opening Cash:  $500 – $1,000

4.  Leasehold Improvements:  $59,865 – $138,879

  • These leasehold improvements may include items such as floor coverings, interior cosmetics, plumbing, electrical work, millwork, counters, mechanical work, general construction, architectural services, city plan fees, etc. The cost of the improvements will vary from location to location depending on landlord design criteria, contractor pricing, and the condition of the premises. There is no guaranty that your costs will fall within the range.
  • If the lessor makes all necessary leasehold improvements, it is possible that such costs will be included in or added to the monthly lease payment, and no front-end out-of-pocket expenses need be paid by you.
  • In certain circumstances, you may be able to negotiate a tenant inducement from the landlord to offset part of these costs.

5.  Business License:  $200 – $2,500

  • The cost of business licenses will vary by location.

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