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Considering a MidiCi Neapolitan Pizza Franchise? Don’t Overlook These 26 Important Franchise Fees

by Franchise Chatter on September 6, 2017

in Franchise Fees, Pizza Franchises, Restaurant Franchise



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If you are considering a MidiCi Neapolitan Pizza franchise, don’t get blindsided by these 26 important franchise fees (from the initial franchise fee, to the royalty fee, to 24 other fees found in Items 5 and 6 of MidiCi Neapolitan Pizza’s 2017 FDD).

1.  Initial Franchise Fee:  $46,000



  • The Initial Franchise Fee for a single Restaurant franchise is $46,000, which is paid in full at the time you sign the Franchise Agreement. The Initial Franchise Fee is fully earned upon receipt and is nonrefundable.
  • Within 30 days of the effective date of your first Franchise Agreement, you may choose to open additional Restaurants (a total of 2, 3, 4, or 5 Restaurants, including the Restaurant to be operated under your first Franchise Agreement), and receive the benefit of paying a reduced, per Restaurant Initial Franchise Fee.
  • If you choose to exercise this option, you will be required to pay MidiCi the difference between the Initial Franchise Fee(s) you already paid and the balance owed for the additional Restaurants you agree to open, which will be calculated and paid as stated in MidiCi’s then-current form of Area Development Agreement.
  • You also will be required to sign an Area Development Agreement, or if you are already a party to an Area Development Agreement, an addendum to the Area Development Agreement identifying the additional Restaurants you agree to open.

2.  Uniforms, Merchandise, Equipment, and Supplies:  $2,700 to $3,100

  • You will be required to purchase from MidiCi certain uniforms, merchandise, equipment, and restaurant supplies costing approximately $2,700 to $3,100. This amount is earned by MidiCi upon receipt and is nonrefundable.

3.  Development Fee:  varies

  • If you sign an Area Development Agreement, you must pay MidiCi a Development Fee in an amount determined based upon the number of Restaurants you agree to develop and operate and the Initial Franchise Fee for each Restaurant.
  • If you agree to open 2 Restaurants, your Development Fee will be $80,000 ($40,000 x 2).
  • If you agree to open 3 Restaurants, your Development Fee will be $102,000 with an Initial Franchise Fee for each Restaurant being $34,000 ($34,000 x 3).
  • If you agree to open 4 Restaurants, your Development Fee will be $124,000 and the Initial Franchise Fee for each Restaurant will be $31,000 ($31,000 x 4).
  • If you agree to open 5 Restaurants, your Development Fee will be $140,000 and the Initial Franchise Fee for each Restaurant will be $28,000 ($28,000 x 5).
  • The Development Fee is credited against the Initial Franchise Fee for each Restaurant. The Development Fee is fully earned by MidiCi upon receipt and is nonrefundable.
  • The Development Fee is due in full upon your signing of the Area Development Agreement. You also will sign a Franchise Agreement in accordance with the Development Schedule for each Restaurant you agree to open.

4.  Development Services Fee:  $3,950

  • You will pay MidiCi a Development Services Fee of $3,950. The Development Services Fee is due when you sign the Franchise Agreement. In exchange for the Development Services Fee, MidiCi will provide you with site selection assistance and support.
  • The Development Services Fee is earned by MidiCi upon receipt and is not refundable.

5.  Royalty Fee:  5% of Net Sales

  • Due Date:  Weekly.
  • Weekly payment (Friday) to MidiCi, via electronic banking.

6.  Brand Fee:  2% of Net Sales

  • Due Date:  Weekly.
  • Weekly payment (Friday) to MidiCi, via electronic banking.

7.  Local Marketing Fund Fee:  greater of 2% of Net Sales or $20,000 per year



  • Due Date:  2% is paid weekly.
  • You will be reimbursed from this Fund for approved local advertising.

8.  Franchisee Ad Co-op Fee:  to be determined by the Co-op

  • Due Date:  To be determined by the Co-op.
  • If MidiCi designates a local cooperative, you must participate in the cooperative and MidiCi will contribute your Local Marketing Fund Fee to the cooperative.

9.  Technology Fee:  $97

  • Due Date:  Monthly by the 5th of each month.
  • Paid by electronic banking.
  • Subject to increase or decrease. The amount of the Technology Fee shall not exceed 5% per calendar year.

10.  Audit Fee:  cost of audit. Precise estimate is unknown as of the date of the 2017 Disclosure Document, but is estimated to range from $500 to $2,000.

  • Due Date:  5 days after notice of amount due.
  • You understate Net Sales in excess of 2%.

11.  Late Fee:  10% of the amount due

  • Due Date:  Within 5 days of the date of MidiCi’s statement for amount due.
  • You will pay MidiCi a late fee in the amount of 10% if you fail to pay the Royalty Fee, Brand Fee, or other amounts due to MidiCi within 10 days of the due date.
  • You will also be required to pay MidiCi a late fee on any overdue amount beginning with the date payment is due until you pay the overage.

12.  Interest on Late Payments:  the lesser of 1 1/2% per month or the maximum amount permitted by applicable law

  • Due Date:  Within 5 days of date of MidiCi’s statement for amount due.
  • You will pay MidiCi interest on any overdue Royalty Fees, Brand Fees, or other amounts due to it, beginning with the date payment is due until you pay the overage.

13.  Additional Training Fee:  to be determined by MidiCi, but not to exceed $1,500 per person per day



  • Due Date:  Before commencement of the training program.
  • You will pay MidiCi a nonrefundable fee if you ask for special assistance or MidiCi determines that additional training is warranted after your initial training period.

14.  Operations Manual:  $500

  • Due Date:  As incurred.
  • If your copy of the Operations Manual is lost, stolen, or otherwise unavailable to you, you must pay MidiCi $500 for a replacement copy.

15.  Alternative Supplier Evaluation Fees:  various amounts to be determined by the amount of time and money necessary to evaluate the alternative supplier and/or the alternative product. Precise estimate is unknown as of the date of the 2017 Disclosure Document, but is estimated to range from $500 to $5,000.

  • Due Date:  As incurred.
  • If you seek approval of a new supplier or product, MidiCi may charge you a fee for conducting the evaluation or you may have to pay some third party to evaluate your proposed supplier or product.

16.  Renewals:  50% of MidiCi’s then-current Initial Franchise Fee

  • Due Date:  Before signing the renewal Franchise Agreement.
  • Payable to MidiCi, if you wish to renew your Franchise Agreement.

17.  Alternative Dispute Fee:  to be determined by the American Arbitration Association

  • Due Date:  At commencement of dispute resolution.
  • Fee for participating in any dispute resolution process.

18.  Transfer Fee:  50% of MidiCi’s then-current Initial Franchise Fee

  • Due Date:  Due at time transferee signs Franchise Agreement.
  • Either you or transferee must pay MidiCi the transfer fee.

19.  Seminar and Convention Fees:  no charge for attending seminars or conventions. Fees for travel, food, and lodging will depend on distance traveled and accommodations which one chooses.

  • Due Date:  As incurred.
  • Fees for travel, food, and lodging to attend seminars and conventions. Paid to various vendors.
  • Certain expenses may be refundable under various circumstances.

20.  Costs and Attorneys’ Fees:  will vary under circumstances

  • Due Date:  As incurred.
  • Payable to MidiCi to reimburse it for fees incurred by it in obtaining injunctive or legal relief for the enforcement of any item of the Franchise Agreement or for costs incurred for arbitration proceedings.

21.  Indemnifications:  will vary under circumstances

  • Due Date:  As incurred.
  • You must reimburse MidiCi if it is held liable for any claims arising from your business.

22.  Insurance:  will vary according to coverage and area

  • Due Date:  As incurred.
  • You must pay for your own insurance coverage. If you do not procure and maintain the required insurance coverage, MidiCi may, but is not required to, procure insurance coverage on your behalf and charge the costs to you together with a reasonable fee for the expenses it incurs.

23.  Proprietary Software:  various amounts

  • Due Date:  As incurred.
  • If MidiCi develops proprietary software, you must use it.

24.  Grand Opening Marketing Campaign:  $8,000

  • Due Date:  As incurred.
  • You must spend at least $8,000 on grand opening marketing and promotion during the first 90 days your Restaurant is open. Your grand opening marketing expenditures will count towards your first year’s Local Marketing Fund Fee.

25.  Liquidated Damages:  $200 per day

  • Due Date:  Upon demand.
  • Payable for each day unauthorized products or services are offered for sale or sold.

26.  Relocation:  $5,000

  • Due Date:  Upon demand.
  • If you decide to relocate your Restaurant for any reason subject to MidiCi’s consent.

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