This post was updated on June 13, 2017 to reflect information from Pieology’s 2017 FDD (Item 7).
Detailed Estimates of Pieology Franchise Costs Based on Item 7 (Estimated Initial Investment) of Pieology’s 2017 Franchise Disclosure Document
1. Initial Franchise Fee: $25,000
2. Initial Training Fee: $0 to $15,000
3. Construction, Remodeling, Leasehold Improvements, and Decorating Costs: $100,000 to $400,000
- The Restaurant’s premises typically are located in a food court, end-cap, or in-line location in a shopping center. A typical Pieology Restaurant is approximately 1,800 to 3,000 square feet.
- Costs of leasehold improvements, which include floor covering, wall treatment, counters, ceilings, painting, window coverings, electrical work, carpentry, other similar work, and contractor’s fees, depend on the condition, location, and size of the site; whether the site previously was used as a restaurant; the build-out required to make the site suitable for your Restaurant; and any construction or other allowances the landlord grants.
4. Fixed Assets, Furniture, Fixtures, and Equipment: $75,000 to $200,000
- This item includes sinks, refrigerators, ovens, dough presses, freezers, ventilation systems, display cases, tables, chairs, booths, utensils, a phone system and facsimile machine, and office supplies. The range depends on whether any equipment already is in place at the site you choose.
5. Signage: $10,000 to $40,000
- The cost of signage depends primarily upon the amount of exterior signage available to a particular site. Exterior signs typically cost approximately $10,000 each.
6. Computer System: $15,000 to $30,000
- You must obtain and use the computer hardware and software that Pieology periodically specifies, including applications; hardware components; detailed communication, Ethernet cabling, data, and power lines with sufficient bandwidth to sufficiently operate all of Pieology’s communication systems; printers; and other computer-related accessories and peripheral equipment (collectively, the “Computer System”), in operating the Restaurant.
- You may purchase the Computer System’s components from the supplier or arrange leasing through an equipment leasing company.
7. Three Months’ Rent: $25,000 to $45,000
8. Security Deposit: $0 to $25,000
- The rent and security deposit depend on the size, condition, and location of the site and the demand for the site among prospective lessees.
9. Opening Inventory and Supplies: $8,000 to $15,000
- This amount is for the food products, materials, smallwares, and supplies necessary to open the Restaurant under Pieology’s System Standards.
10. Pre-Opening Advertising: $10,000 to $20,000
11. Training Expenses (for all trainees): $6,000 to $12,000
- This is an estimated average cost of travel and living expenses for 4 trainees to attend the initial training program.
- The higher end of this range also includes an amount for additional training programs if you or any of your personnel cannot complete the initial training programs to Pieology’s satisfaction and for additional expenses the franchisor incurs if you change the opening schedule and cause it to reschedule its travel arrangements or if you want its training team to remain at the Restaurant for an extra day.
12. Miscellaneous Opening Costs: $5,000 to $15,000
- This item covers miscellaneous opening costs and prepaid expenses, including installing telephones; deposits for gas, electricity, and other utilities; business licenses (including beer and wine); architectural plans; city and county impact fees; legal and accounting expenses; costs for the extension fee if you request and Pieology agrees to extend the Opening Deadline; and insurance premiums.
- The cost of licenses for the sale of alcoholic beverages can vary significantly by location. For example, in the State of New Jersey, the cost of obtaining a beer and wine license will likely exceed this range by a substantial amount.
13. Additional Funds – 3 Months: $15,000 to $30,000
- This item estimates your initial start-up expenses (other than the items identified separately in the table). These expenses include payroll costs but not any draw or salary for you.
- These figures are estimates, and you may need additional working capital during the first 3 months you operate your Restaurant and for a longer time period after that. This 3-month period is not intended, and should not be interpreted, to identify a point at which your Restaurant will break even.
- The franchisor relied on its principals’ experience in establishing and operating Pieology Restaurants to compile this Additional Funds estimate.
14. Total Estimated Initial Investment (excluding real estate purchase costs): $294,000 to $872,000