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Franchise Costs: Detailed Estimates of Uno Pizzeria & Grill Franchise Costs (2017 FDD)

by Franchise Chatter on May 3, 2015

in Franchise Costs, Pizza Franchises, Restaurant Franchise

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Uno Pizzeria & Grill

This post was updated on March 19, 2017 to reflect information from Uno Pizzeria & Grill’s 2017 FDD (Item 7).

Detailed Estimates of Uno Pizzeria & Grill Franchise Costs Based on Item 7 (Estimated Initial Investment) of Uno Pizzeria & Grill’s 2017 Franchise Disclosure Document

For Full Service Uno Restaurants – Built to Suit or Leased Building and Real Estate

  • The costs and expenses are estimates and your actual costs and expenses may be higher or lower.
  • These estimated expenses are based on new construction and prototypical development of an Uno Restaurant, covering a broad range of locations (new, conversion, etc.).
  • These estimates do not reflect investment amounts associated with establishing an Uno Restaurant outside the United States.

1.  Initial Franchise Fee:  $40,000

  • If you sign a Development Agreement, you must, when you sign the Development Agreement, pay a development fee equal to $10,000 times the number of Full Service Uno Restaurants you will develop, as well as a development deposit equal to one-half of the $40,000 initial franchise fee for each Full Service Uno Restaurant you will develop.
  • You must pay the remaining balance of the initial franchise fee ($20,000 per Full Service Uno Restaurant), when you sign the Franchise Agreements for your Full Service Uno Restaurants.

2.  Building Construction Costs:  $1,000,000 to $1,300,000

  • These estimated expenses include your costs of constructing your Uno Restaurant premises, based on use of the company’s design and criteria. These estimates include the contractor’s general conditions, overhead, and profit.
  • These estimates assume that adequate utilities are available for connection, and that there are no unusual site conditions or impact fees.
  • Your actual costs may vary from these estimates based on the size, configuration, design, and location of your Uno Restaurant as well as other economic factors.
  • Those estimated expenses include an allowance for permits and impact fees.
  • Construction costs and permit fees vary greatly from state to state and region to region, depending on materials, labor costs, and other variables.

3.  Furniture, Fixtures, and Equipment:  $400,000 to $600,000

  • The furniture, fixtures, and equipment will vary, depending on the size and seating capacity of the Uno Restaurant.
  • The company requires you to construct your restaurant in strict compliance with its current design standards or prototypical construction documents.
  • The estimated expenses include artifacts, signage, awnings, furniture and equipment, and costs to prepare, ship, and install the artifact package.

4.  Initial Inventory:  $15,000 to $30,000

  • This estimate represents the cost of food and beverages, paper goods, product required for initial training, and opening inventory for your Uno Restaurant.

5.  Point of Sale Computer Hardware and Software:  $25,000 to $45,000

6.  Supplies and Miscellaneous Costs (for 3 months):  $1,000 to $3,000

7.  Business Permits:  $1,000 to $10,000

8.  Liquor License:  $15,000 to $200,000

  • The cost of obtaining a liquor license varies greatly depending on the licensing authority involved and whether a license must be purchased from a seller or governmental authority. In Uno’s experience, liquor licenses have been obtained for as little as $15,000 and as much as $200,000.
  • This variation reflects the fact that some states issue only a limited number of new liquor licenses each year, or none at all, and you may therefore need to purchase an existing liquor license at its fair market value, which may be substantial.

9.  Insurance Fees (for first year):  $12,000 to $35,000

10.  Architect Fees:  $35,000 to $65,000

11.  Other Professional Fees:  $2,500 to $25,000

12.  Lease Payments:  $15,000 to $60,000

  • This estimate represents deposits, rent, and related charges during your first 3 months of operation, and assumes a monthly lease rate of $5,000 to $20,000.
  • If you do not already own suitable restaurant space, you must purchase or lease the premises. Uno anticipates that most franchisees will lease the premises.
  • Uno recommends a restaurant space of 5,500 to 7,000 square feet for Full Service Restaurants. Uno prefers that you lease at least 1.8 acres that is 150 feet or more wide for a full service restaurant.

13.  Utility Deposits:  $1,000 to $10,000

14.  Travel and Lodging for Opening Team:  $10,000 to $40,000

15.  Advertising and Promotion:  $1,000 to $5,000

16.  Gift Card Processing Deposit:  $2,500

17.  Additional Funds (3 months):  $125,000 to $200,000

  • This represents your initial start-up expenses primarily for labor and supplies, including payroll costs. These figures are estimates and Uno cannot guarantee that you will not have additional expenses starting the business.
  • Your costs will depend on factors such as:
  • how much you follow Uno’s methods and procedures;
  • your management skill, experience, and business acumen;
  • local economic conditions;
  • the prevailing wage rate;
  • competition; and
  • the sales level reached during the initial period.

18.  Total:  $1,701,000 to $2,670,500

  • The totals do not include the Initial Development Fee which is required only if a Development Agreement is signed.

For Full Service Uno Restaurants – You Own the Restaurant Building and Lease the Land

  • The total estimated initial investment necessary to begin operation of a full service Uno Pizzeria & Grill, where you own the restaurant building and lease the land, ranges from $2,066,000 to $3,775,500.

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