If you are considering an Uno Pizzeria & Grill franchise, don’t get blindsided by these 33 important franchise fees (from the initial franchise fee, to the royalty fee, to 31 other fees found in Items 5 and 6 of Uno Pizzeria & Grill’s 2017 FDD).
1. Initial Franchise Fee: $40,000
- You must pay Uno Pizzeria & Grill a non-refundable initial franchise fee of $40,000 if you sign a Full Service Franchise Agreement. The initial franchise fees are uniform for all franchisees.
2. Development Fee: $10,000 times the number of Full Service Uno Restaurants you will own and operate
- If you enter into a Development Agreement to develop Full Service Uno Restaurants, you must, when you sign the Development Agreement, pay Uno Pizzeria & Grill a development fee equal to $10,000 times the number of Full Service Uno Restaurants you will own and operate.
- The development fee does not apply toward the initial franchise fees you will pay for each of the Full Service Uno Restaurants.
- In addition to the development fee, you must pay Uno Pizzeria & Grill an initial franchise fee of $40,000 for each Full Service Uno Restaurant. You must pay one-half of the total amount of the initial franchise fees ($20,000 per Full Service Uno Restaurant times the number of Full Service Uno Restaurants you will own and operate), when you sign the Development Agreement, and you will pay the remaining one-half of the initial franchise fee for each Full Service Uno Restaurant when you sign the Full Service Franchise Agreements.
- The development fee, development deposit, and initial franchise fees are uniform for all developers and are non-refundable.
3. Design Services Fees: $500 to $15,000
- Uno Pizzeria & Grill or its affiliates offer design services, artifact packages, food products, and computer hardware and software services to franchisees. Design services fees have ranged from $500 to $15,000 and must be paid before your Restaurant opens for business.
4. Artifact Package: $4,000 to $15,000
- The artifact package ranges from $4,000 to $15,000, and must be paid before the materials are shipped.
5. Initial Inventory of Food Products: $500 to $1,000
- Your initial inventory of food products purchased from Uno Foods and distributed by Uno Pizzeria & Grill’s food service provider will range from $500 to $1,000, and must be paid before your Restaurant opens for business.
6. Computer (POS system support charges): $600 to $1,800 per year
- Computer (POS system support charges) payments range from $600 to $1,800 per year, and the first year’s charge must be paid before your Restaurant opens for business.
7. Travel and Lodging Costs of Opening Team: $10,000 to $40,000
- You must pay Uno Pizzeria & Grill for the travel and lodging costs of the opening team for your Restaurant. These travel and lodging costs will range from $10,000 to $40,000, depending on the location of your Restaurant, the number of opening crew members provided, and other factors.
8. Gift Card Processing Deposit: $2,500
- You must also pay Uno Pizzeria & Grill a gift card processing deposit in the amount of $2,500.
9. Royalty Fee: 5% of Gross Sales, but not less than $4,000 per month
- Due Date: Payable on Tuesday of each week for the preceding week via electronic funds transfer (“EFT”).
- “Gross Sales” means the total selling price of all services and products from the operation of your Uno Restaurant, subject to certain exclusions as set forth in Article 26.9 of the Franchise Agreement.
10. Business Coop Fee: up to 1% of Gross Sales
- Due Date: Same as Royalty Fee.
- This covers your share of advertising and marketing costs that Uno Pizzeria & Grill incurs for the benefit of the Business System.
11. Minimum Local Advertising Expense: 2% of Gross Sales
- Due Date: Monthly.
- You must spend at least 2% of Gross Sales monthly on local advertising, public relations, and promotions of your choice, subject to Uno Pizzeria & Grill’s approval.
12. System Wide Marketing and Media Fund Fee: up to 1% of Gross Sales
- Due Date: Same as Royalty Fee.
- This Fund has not yet been implemented, but is designed to facilitate media market spending in a way that benefits the Business System on a local, regional, or national basis through cooperative purchasing of print, radio, or television media.
13. Local Advertising Association Fees: as determined by Association, if one is applicable to your area
- Due Date: As determined by Association.
- Contributions will offset your minimum local advertising expense requirements.
14. Interest: lesser of 1½% per month or highest rate allowed by applicable law
- Due Date: On demand.
- Interest may be charged on all overdue amounts.
15. Advertising and Promotional Materials Fee: as determined by Uno Pizzeria & Grill
- Due Date: On demand.
- Uno Pizzeria & Grill develops advertising and promotional materials from time to time that it makes available for your use. It may charge you a reasonable fee for the materials.
16. Transfer Fee: $10,000
- Due Date: Submitted before transfer approval.
- The transfer fee is the same under both the Franchise Agreement and the Development Agreement. This amount will also cover Uno Pizzeria & Grill’s training and assistance fees for training the new owner’s Operating Principal.
17. Pizzeria Public Offering: $20,000
- Due Date: When billed.
- This amount is to reimburse Uno Pizzeria & Grill’s costs to review your proposed securities offering. The offering fee is the same amount under both the Franchise Agreement and the Development Agreement.
18. Renewal Fee: 10% of then-current initial franchise fee
- Due Date: On signing renewal Franchise Agreement.
- You must give Uno Pizzeria & Grill at least seven months’ notice and meet other conditions for renewal.
19. Site Evaluation Inspections: you must reimburse Uno Pizzeria & Grill for its expenses beyond the first two site evaluations (estimated to range from $0 to $1,200 per visit)
- Due Date: When billed.
- Uno Pizzeria & Grill provides two on-site evaluations without charge. For additional site selection visits, it may charge you for its costs.
20. Construction or Remodeling Inspections: you must reimburse Uno Pizzeria & Grill for its expenses (estimated to range from $0 to $1,200 per visit)
- Due Date: When billed.
- Uno Pizzeria & Grill provides two on-site inspections without charge. For additional inspections of construction or remodeling, Uno Pizzeria & Grill may charge you for its costs.
21. Employment Fee: compensation paid to employer in an amount equal to the previous 12 months of employee’s salary and bonuses
- Due Date: When billed.
- If you employ an individual who is at the time, or has been within the preceding 12 months, employed by Uno Pizzeria & Grill or another Pizzeria Uno franchisee or developer in a restaurant managerial position, a multi-unit supervisory position, headquarters staff position (e.g., officer or director level personnel, management information systems personnel, or human resources personnel), or key hourly employee position (e.g., trainers, training team members, and opening team members), then you must compensate the former employer.
22. Additional Training: reasonable fee and travel costs
- Due Date: When billed.
- Applies if Uno Pizzeria & Grill provides you with additional trained representatives who provide on-site remedial training.
23. Insurance Fee: reasonable costs and expenses
- Due Date: On demand.
- If you fail to procure or maintain the insurance required by the Franchise Agreement, Uno Pizzeria & Grill has the right to procure it and charge you for the premium and its expenses.
24. Deficiency Correction Costs: reasonable costs and expenses
- Due Date: On demand.
- Uno Pizzeria & Grill has the right to correct deficiencies in your operation of the Uno Restaurant if you have not corrected them within a reasonable time after receiving notice from Uno. It may charge you a reasonable fee for its expenses in so acting.
25. Opening Team Expenses: reasonable costs and expenses for opening team members
- Due Date: When billed.
- Uno Pizzeria & Grill provides an opening team to provide training and opening assistance at your Uno Restaurant. You must reimburse Uno for the travel, transportation, lodging, and meal expenses it incurs in providing the opening team.
26. Training and Assistance Fees: reasonable costs and expenses, plus per diem for employees providing services
- Due Date: When billed.
- Uno Pizzeria & Grill provides initial training for your Operating Principal (or his designee), the General Manager, and other managers which Uno Pizzeria & Grill selects without additional charge for your first Uno Restaurant.
- If Uno Pizzeria & Grill provides additional training or assistance for additional or replacement personnel, it has the right to charge a reasonable fee.
27. Force Majeure Minimum Fee/Reopening Fee: $4,000 per month for Full Service Restaurants, plus Uno Pizzeria & Grill’s travel, salary, and related costs associated with reopening the Uno Restaurant
- Due Date: Monthly; when billed.
- If your Uno Restaurant is closed because of an event of force majeure, you must continue paying the Minimum Monthly Royalty Fee.
- If you have signed a Development Agreement and any Uno Restaurant you develop closes for any reason other than an event of force majeure, then you must continue paying the Minimum Monthly Royalty Fee, or 2% of the Uno Restaurant’s average monthly Gross Sales, whichever is greater.
28. Product Inspection and Testing: cost of inspection or testing
- Due Date: When billed.
- Uno Pizzeria & Grill may require you to pay it or an independent laboratory for the cost of inspection or testing if you wish to purchase or lease items used in the Uno Restaurant from sources Uno has not previously approved.
29. Legal Fees and Indemnification: varies according to cost or loss incurred
- Due Date: On demand.
- You must pay Uno Pizzeria & Grill’s legal costs if it incurs legal fees in connection with your breach of the Agreements and indemnify it when certain of your actions result in loss to it under the Agreements.
30. Audit Fee: cost of auditing your financial statement and records
- Due Date: When billed.
- Payable only if Uno Pizzeria & Grill finds, after an audit, that you have understated any amount owed to it by 2% or more, or Gross Sales of 5% or more.
31. Extension Fees: $10,000
- Due Date: Paid with extension request.
- If you are unable to develop the number of Uno Restaurants required under the Development Agreement within the time periods required, Uno Pizzeria & Grill may permit you to pay an extension fee instead of terminating the Development Agreement.
32. Opening Date Fees: costs and expenses
- Due Date: On demand.
- If you open the Uno Restaurant on a date other than the Opening Date on Exhibit A of the Franchise Agreement, and you have not provided 30 days’ written notice of the actual Opening Date, you must reimburse Uno Pizzeria & Grill for its costs and expenses incurred as a result, including costs to amend its travel arrangements for training personnel.
33. Software Upgrade and Enhancement Fee: to be determined by Uno Pizzeria & Grill depending on cost and number of upgrades or enhancements
- Due Date: When billed.
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