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ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
For Standard Pie Five Restaurants
|Type of Expenditure||Amount (1)||Method of Payment||When Due||To Whom Payment Is To Be Made|
|Initial Franchise Fee (2)||$30,000||Lump Sum/Cash||No later than the date on which you sign the Franchise Agreement||Us|
|Grand Opening Advertising (3)||$15,000||As Arranged||As Arranged||Suppliers|
|Real Estate (4)||$3,500-$10,417||As arranged||Before Opening||Landlord|
|Architectural Design Services (5)||$10,000-$20,000||As Arranged||Before Opening||Independent Architects and Engineers|
|Construction/Leasehold Improvements (6)||$150,000- $222,000||See Note 4||Before Opening||Construction Company|
|Travel and Living Expenses While Training (7)||$5,000-$15,000||As Arranged||Before Beginning Training||Airlines, Hotels, Restaurants|
|Furnishings, Fixtures, Equipment and Signage (8)||$125,000- $180,000||As Arranged||As Ordered||Suppliers|
|Signage (9)||$7,000- $15,000||As Arranged||As Ordered||Suppliers|
|Smallwares||$17,000-$25,000||As Arranged||As Ordered||Us, our Affiliate,
|Initial Inventory (10)||$6,000- $9,000||As Arranged||Before Opening||Our Affiliate|
|Miscellaneous Opening Costs (11)||$12,000-$20,000||As Arranged||Before Opening||Suppliers, Utilities, etc.|
|Register or Point of Sale System (12)||$10,000 – $16,000||As Arranged||As Arranged||Supplier|
|Additional Funds — 3 months (13)||$8,000 – $18,000||As Arranged||As Incurred||Employees, Suppliers, Utilities|
(1) Costs paid to us or our affiliates are not refundable. Whether any costs paid to third parties are refundable will vary based on the practice in the area where the Franchised Restaurant is located.
(2) You must conduct initial marketing for the Franchised Restaurant in accordance with a grand opening plan that you have prepared and to which we have consented (“Grand Opening Plan”). Under the Grand Opening Plan, you will be required to spend a minimum of $15,000 on grand opening advertising over the period beginning one month prior to opening and continuing through the second month after opening. Guidelines for grand opening activities will be included in the manual. Within 10 days after the end of the period in which you conduct this initial marketing, you must submit appropriate documentation to verify compliance with the grand opening expenditure obligation. The amount spent on your grand opening expenditure obligation is not credited against your Advertising Obligation.
(3) It is our understanding with Captive Market Locations, generally, there are no specific costs
associated with acquiring real property since the franchisee typically already has a contract with the owner of the Facility to provide foodservice at the Facility. Therefore, a franchisee should not incur additional real property costs in connection with the Franchised Restaurant. This amount includes the Site Submittal Fee of $2,000. 15 Pie Five (Consolidated) 2018 Franchise Disclosure Document 1311.005.002/257020.4
(4) The cost of architectural design services will vary depending on the geographic location, size and condition of the premises.
(5) It is our understanding that building and site improvement costs, which include design, permits and municipality fees, at Captive Market Locations can vary dramatically. Accordingly, it is difficult to estimate the costs except in a very broad range. These costs are heavily dependent on the condition of the Facility and the venues of the location (for example, food court, in-line space, concession location, etc.) In some instances, it also may be dependent on the amount of improvements required by the owner of the Facility.
(6) As described in Item 11, prior to opening a Pie Five Restaurant, two managerial personnel must attend the MIT Program. We do not charge tuition for this training program, but you are responsible for all salaries, benefits, and travel, living, and other expenses incurred by your employees while attending the training. The cost of these expenses will depend on the distance traveled, the types of accommodations and the wages of your employees attending training. Training is held at a Pie Five Restaurant operated by us or our affiliates and/or our corporate office, which is currently in the Dallas/Fort Worth area.
(7) You must purchase certain items of furniture, fixtures, and equipment. The cost of purchasing equipment may vary as a result of price differences between suppliers and shipping distances from suppliers. You may purchase or lease approved brands and models of equipment from any approved supplier. Payment for these items typically will be made prior to the opening of the Franchised Restaurant or in installments over a period of time, depending on the type of financing arrangement you are able to obtain. Generally, the availability and terms of financing will depend upon many factors, including your creditworthiness.
(8) The type of signage installed is governed by local ordinances regarding height and size restrictions. The typical sign package for Captive Market Locations includes only interior signs.
(9) Captive Market Restaurants are often developed as part of a food court operation in a mall, airport terminal or travel plaza in which no exterior signage is feasible. In these instances, you may not have costs for exterior signage.
(10) The cost of an opening inventory of food, beverages, ingredients, and other supplies and materials will vary depending on shipping distances from suppliers and price differences between suppliers. As described in Item 8, these items must conform to specifications established by us and/or be purchased from us and/or approved suppliers.
(11) This item covers such miscellaneous pre-opening costs and expenses as manager and employee labor, utilities and utility deposits, lighting supplies, office supplies, security deposit, pest control, postage and shipping, storage fees, bank service charges, payroll service charges, licenses, permits and a three-month premium for typical insurance coverage. Manager and employee labor expenses vary according to the wage rate and number of employees and managers hired and trained before opening your Franchised Restaurant.
(12) A description of the computer system can be found in Item 11.
(13) This is our estimate of your operating expenses for the initial 3 months of your business, including payroll costs for management, rent, insurance, and utilities. These expenses do not include advertising or royalty payments made to us. The estimate also does not take into account revenue you may take in. These figures are estimates, and we cannot guarantee that you will not have additional expenses starting the business. Your actual costs will depend on factors such as how closely you follow our methods and procedures; your management skill, experience and business acumen; financing costs; local economic conditions; the local market for the Franchised Restaurant; the prevailing wage rate; competition in the market place; and the sales level reached during the initial period.
(14) We relied on the experience of our affiliate in developing and operating Pie Five restaurants to compile these estimates. Your actual costs may be affected by factors such as how much you follow our 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 of operation. You should review these figures carefully with a business advisor before making any decision to purchase a franchise. We do not offer financing directly or indirectly for any part of the initial investment.
At this time, we are not offering direct financing. However, we do have beneficial relationships with some excellent companies that offer financing at every level, which we make available to our new franchisees.
Actually, that’s no problem. You can leave that important detail to us, as we have to approve all sites anyway. And, we have the perfect team comprised of experienced industry real estate experts who have located top sites for other brands such as Chipotle, Smashburger, and Einstein Bros. Bagels just to name a few.
We do NOT require previous franchise experience but it is preferred. Our current criteria for Pie 5 franchise partners includes:
- Experienced multi-unit restaurant operators (preferred but not required)
- Above store systems in place (perhaps already operating one or two other concepts or at least the ability to put an above restaurant system in place to operate multiple restaurants)
- Live and/or operate in the market you franchise
- Team Players who like to have fun required (Yes, that is a serious rule. We want a small group of franchisees who are aligned and can come together to operate consistently, and frankly, that we like hanging out with and building a brand with. We’re planning on doing this together for many years.)
We are currently offering single unit and multi-unit restaurant franchise opportunities.
Since we are thorough in our approach, having built over 300 restaurants, as soon as a site is located/approved, it takes six weeks for construction, one week for final punch list/inspections, and one week for pre-opening training.
Absolutely! Since we’ve been building restaurants for over 50 years, our equipment and supply chain is streamlined and in place – ready to go to work for you.
Yes, we have a marketing team of outstanding professionals who will help you execute our proven strategy that is fashioned to your specific location and market.
The Pie Five training program consists of a three-week classroom and hands-on training at our corporate Dallas location unless there is a certified training restaurant in your market. Here’s some of what we cover:
On-site training prior to grand openings
- Weekly calls
- Initial store set up
- Hands-on crew training
- POS training
- Recipe training
Fully supported training for first two stores
- Three people one week pre-open
- Lead trainer stays one week post-open
- Ongoing support as needed – FSM (Franchise Support Manager)