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MidiCi Neapolitan Pizza Franchise Costs & Fees

Date of Incorporation: 2014
Franchising Since: 2015
Headquarters: Encino, California

Business Description: MidiCi fast casual Restaurants feature build-your-own Neapolitan pizzas, salads, appetizers, beverages, dessert items, and other products in a distinctive atmosphere.

Franchise Offer: MidiCi grants the right to develop and operate a fast casual restaurant under the “MidiCi” trademark and other Marks and the System. MidiCi also offers qualified franchisees the right to develop multiple MidiCi Restaurants under the terms of a Multi-Unit Agreement. The Restaurant will offer build-your-own Neapolitan pizzas, salads, appetizers, dessert items, beverages, and other products for retail sale to the public.

Financial Assistance: Neither MidiCi nor any of its affiliates offer any direct or indirect financing. MidiCi do not guarantee franchisees notes, leases, or any obligation. MidiCi are unable to estimate if franchisees will be able to obtain financing from third parties and, if so, the terms and conditions of financing.

Training and Assistance: Before opening the Restaurant, MidiCi will train the franchisee or the franchisee’s Operating Partner and one manager-level employee to operate a MidiCi Restaurant without charging a fee. MidiCi will provide approximately 12 to 48 days of training at the training facility in Sherman Oaks, California, or another location the franchisor designates. Franchisees must attend and complete the entire prescribed length of the training program. The training program will be conducted once per month. Additional people beyond the first two may attend initial training for the then-current training charge for each additional person.

Territory: The franchisee will operate the Restaurant at a specific location that MidiCi first must approve. Except for Special Sites, MidiCi will not during the term of the franchise agreement operate or grant others the right to operate a MidiCi Restaurant within a specified geographic area, except as generally described in the Franchise Agreement. The franchisee does not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets MidiCi owns or from other channels of distribution or competitive brands that MidiCi controls.

Term of Agreement and Renewal: The length of the initial term of the franchise is 10 years. The initial term for the Multi Unit Agreement depends on the number of restaurants to be developed under the Multi Unit Agreement. Renewal is for three additional terms of 10 years each under the Franchise Agreement. There are no renewal rights under the Multi Unit Agreement.

Obligations and Restrictions: The day-to-day operations of the MidiCi Restaurant must be managed at all times by the franchisee, Operating Partner, or a “General Manager” who has satisfactorily completed the training program. The franchisee must offer and sell all Menu Items and perform all services required for MidiCi Restaurants. The franchisee may not offer or sell any products or perform any services that MidiCi has not authorized. The franchisee may not offer for sale any Menu Items or other products through the Internet or other online programming or marketing. The franchisee is not otherwise limited in the customers to whom they may sell products or services.

Estimated Number of Units: 5

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $46,000 $46,000
Training Expenses $3,500 $6,000
Development Services Fee $3,950 $3,950
Rent Deposit $9,166 $27,498
Leasehold improvements $225,000 $311,000
Furniture, Fixtures, and Equipment $175,000 $190,000
Computer (POS) System $17,000 $17,000
Signage $8,000 $14,000
Opening Inventory $10,000 $10,000
Uniforms, Merchandise, Equipment and Sales $7,000 $7,000
Initial Marketing $8,000 $8,000
Utility Deposits, Security Deposits, Business Licenses and Liquor License, etc. $5,000 $11,000
Inspection Fee $0 $1,500
Additional Funds - 3 months $95,000 $122,000
ESTIMATED TOTAL $612,616 $774,948
Other Fees
Type of Fee Amount
Royalty Fee 5% of gross sales.
Brand Fee 2% of gross sales.
Local Marketing Fund Fee Greater of 2% of gross sales or $20,000 per year.
Franchisee Ad Co-op Fee To be determined.
Technology Fee $97
Audit Fee Cost of audit. Precise estimate is unknown as of the date of this Disclosure Document, but is estimated to range from $500 to $2,000
Late Fee 10% of the amount due.
Interest on late payments The lesser of 1 ½% per month or the maximum amount permitted by applicable law.
Additional training fee To be determined, but not to exceed $1,500 per person per day.
Operations Manual $500
Alternative Supplier Evaluation fee 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 this Disclosure Document, but is estimated to range from $500 to $5,000
This amount will include our costs and expenses associated with any testing, including travel and lodging expenses incurred by us to visit a supplier’s facilities.
Renewal Fee 50% of the franchise’s then-current initial franchise fee.
Alternative Dispute Fee To be determined by the American Arbitration Association.
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.
Costs and Attorneys’ Fees Will vary under circumstances.
Indemnification Will vary under circumstances.
Insurance Will vary according to coverage and area.
Proprietary Software Various Amount.
Grand Opening Marketing Campaign $8,000
Inspection fee Our costs and expenses in conducting any subsequent pre-opening Restaurant inspection. We estimate that this amount will not exceed $1,500

The above information has been taken from the FDD of MidiCi Neapolitan Pizza. Year of FDD: 2016

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