Updated September 7, 2019.
Detailed Estimates of Boston’s Pizza Restaurant & Sports Bar Franchise Costs Based on Item 7 (Estimated Initial Investment) of Boston’s 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $50,000
- If you enter into a single Franchise Agreement with Boston’s, you will pay Boston’s $50,000 as the initial franchise fee.
- If you enter into a Development Agreement with Boston’s, you will pay Boston’s a development fee equal to $50,000 multiplied by the number of Restaurants to be developed, which means the amount you pay Boston’s will be more than the $50,000 reflected in the table.
- When you sign the Franchise Agreement for each Restaurant that is developed under the Development Agreement, Boston’s will credit $50,000 toward the initial franchise fee.
2. Rent Expense: $10,000 to $27,000
- This range is based upon a Boston’s Pizza between 5,500 to 7,000 square feet of interior space. If you do not own suitable space or land for your Restaurant, you must rent premises suitable for the operation of a Restaurant.
- This estimate is for your rent the first month and does not include an estimate of monthly operating expenses, including, but not limited to, common area maintenance, real estate taxes, and landlord insurance.
3. Real Property: varies
- If you choose to buy, rather than rent, real estate on which a building suitable for your restaurant already is constructed or could be constructed, you will incur real estate costs.
- Real estate costs depend on location, size, visibility, economic conditions, accessibility, competitive market conditions, and the type of ownership interest you are buying, so Boston’s cannot estimate the cost of purchasing real estate.
4. Architectural and Engineering Fees: $36,000 to $65,000
- You will be provided a prototypical set of drawings for a Restaurant. These drawings must be site adapted to each individual site as required to meet local and state building codes.
- This range represents the estimated cost you will pay for the architectural services required to “site adapt” the prototype drawings for your location as required to receive a building permit.
5. Construction and Leasehold Improvements: $150,000 to $1,100,000
- This range represents the estimated construction costs for interior improvements for an existing restaurant retrofit or build out from a building shell.
6. Furniture, Fixtures, and Equipment: $385,000 to $735,000
- This entry represents the cost for the purchase of furniture, fixtures, and equipment for your Restaurant. It includes items such as kitchen equipment, smallwares, decorative package, furniture, uniforms, fountain dispensers, draft beer dispensers, and other miscellaneous fixtures and equipment.
7. Audio/Visual Systems: $75,000 to $150,000
- The range in the table includes the costs of televisions throughout the premises, as well as a camera system and audio system. You may obtain your audio/visual system from a vendor of your choosing that meets Boston’s minimum specifications.
8. POS and Computer: $40,000 to $50,000
- The range in the table includes the costs of point-of-sale and computer systems. You must purchase a point-of-sale system in accordance with Boston’s specifications from an approved supplier.
9. Signage, Graphics, and Artwork: $20,000 to $100,000
- This amount includes the costs of building signs, monument signs, and/or pole signs as well as interior graphics and art package.
10. Liquor License: varies
- It is solely your responsibility to obtain and maintain a liquor license. The cost of a liquor license can be significantly higher in states where the number of licenses is severely restricted or available only from an existing holder.
11. Security and Utility Deposits and Permits: $1,000 to $7,000
- You may need to pay permit fees and utility deposits in establishing your Restaurant. These amounts can vary, depending on the municipality.
12. Initial Training and Opening Expenses: $45,000 to $72,000
- This amount represents the estimated cost to hire and train a management team and hourly employees who will staff the Restaurant.
- This entry includes expenses associated with the attendance at Boston’s initial training program as well as with the on-site training provided by Boston’s employees during the opening of your Restaurant and expenses associated with the opening of the Restaurant.
13. Pre-Opening Marketing Assistance and Media: $10,000 to $25,000
- Boston’s will present you with media plan options, the minimum cost of which is currently $10,000 and the maximum cost is currently $25,000. You will be required to select an option and pay Boston’s the cost of such option at that time.
14. Inventory: $27,000 to $47,000
- You must purchase an initial inventory of food products, beverages, and Restaurant supplies according to Boston’s specifications.
15. Manager’s Salary: $29,000 to $35,000
- This is an estimate of the manager’s salary during training and before opening your Restaurant.
16. Insurance: $1,500 to $2,500
- This amount represents an estimate of the down payment on your annual insurance premiums. You must obtain the coverage described in the Franchise Agreement.
- Boston’s must be named as an additional insured on these policies, and Boston’s must receive proof of insurance within 30 days after you obtain the insurance.
17. Professional Fees: $8,000 to $15,000
- You may need or elect to use professional services (attorneys, accountants) in establishing your Restaurant and obtaining a liquor license. These amounts vary widely, depending on the extent of the services required.
18. Additional Funds for 3 Months: $30,000 to $50,000
- In the event there is a cash shortfall during the initial operating phase of the Restaurant (approximately the first three months of operation), you will need to have additional funds available for your use.
- These additional funds will be needed for expenses such as costs associated with the opening of your Restaurant, ongoing marketing costs, working capital, managers’ salary after opening, debt service, and additional miscellaneous costs.
19. Total: $917,500 to $2,530,500 (excluding real property)
- The figures above are estimates only and may vary depending on location.
- These figures do not include shipping, installation, or any applicable federal or state sales tax.