Notes

Notes on startup costs


Notes for Dine-in Round Table Pizza Restaurant:

1. The initial development fee varies depending on such circumstances as the size of your development area and the number of Round Table Pizza restaurants you must open in your area. You may pay an initial development fee calculated by multiplying a dollar amount by the number of Round Table Pizza restaurants you agree to develop. You may also have to pay all or a percentage of the initial franchise fee each time you sign a Franchise Agreement for a restaurant.

2. The initial franchise fee is $25,000 for your first Round Table Pizza restaurant. The initial franchise fee is refundable (less certain expenses) if the Company terminates you because you have not secured a suitable location for your restaurant or if you terminate the Franchise Agreement because the Company requires changes to your store plans that exceed a certain cost (see Item 5). If you already own a Round Table Pizza restaurant, you pay an initial franchise fee of $12,500. If your Round Table Pizza restaurant is in a non-traditional location, you pay an initial franchise fee of $7,500. The Company may occasionally adopt incentive programs to encourage existing franchisees who meet certain financial and operational criteria to open or acquire additional restaurants. These programs may include waiving initial fees and royalty holidays (see Item 5). In addition, the Company may negotiate a reduced initial franchise fee if it grants the right to a franchisee to offer select products under the Round Table Pizza name in a restaurant operated under a different name.

3. You will have to acquire (by lease or purchase) a suitable site to operate your Round Table Pizza restaurant. Generally, leases are for a term of 10 years with 1 or more 5-year options to extend. The amounts specified for leasehold improvements, security deposit, first month’s rent (estimated to range from $3,600 to $12,000 depending on square footage and whether the site is in an urban or less populated location), permits and architects’ fees and fixtures and equipment are based on the Company’s experience with existing franchisees. These costs may vary depending on the size, condition and location of the leased premises, the landlord’s contribution to leasehold improvements, -13- 2016 if any, supply and demand for materials and labor in your local area, local building and fire code requirements and requirements of the lease regarding such matters as construction, signage and inflation. If you choose to construct your own building, your construction costs will generally be higher than the cost specified for leasehold improvements. Newly constructed Round Table Pizza restaurants will vary in size from 1700 to 4000 square feet. Permit fees, particularly sewer and water hookup fees, vary significantly and may increase the total cost of required leasehold improvements.

4. The cost of insurance may be significantly higher than the estimate depending on such factors as particular state coverage requirements, store location and your loss history. Workers’ Compensation insurance is not included in the above estimate.

5. These miscellaneous start-up costs are the Company’s best estimate of such costs as deposits for installation of telephones, deposits for gas, electricity and related items, costs for initial marketing including point of sale advertising and promotion materials, initial working capital and initial employee payroll. You may have additional expenses in starting the business. Your actual costs will depend on your management skill, experience and business acumen, your sales figures during the three month period, your ability to follow the Round Table system and local market and economic conditions. The Company’s estimate of the additional funds you may require is based on its experience with existing franchisees.

6. This is an estimate of your initial start up expenses for one dine-in Round Table Pizza restaurant. These estimates may not apply to a Round Table Pizza restaurant in a non-traditional location. In preparing these estimates, the Company has relied on the experience of its franchisees, on its own experience as a franchisor, and on the experience of its affiliates that operate Round Table Pizza restaurants. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.

 

Notes for Delivery Carry-out:
1. The initial development fee varies depending on such circumstances as the size of your development area and the number of Round Table Pizza restaurants you must open in your area. You may pay an initial development fee calculated by multiplying a dollar amount by the number of Round Table Pizza restaurants you agree to develop. You may also have to pay all or a percentage of the initial franchise fee each time you sign a Franchise Agreement for a restaurant.

2. The initial franchise fee is $25,000 for your first Round Table delivery and carry-out unit. The initial franchise fee is refundable (less certain expenses) if the Company terminates you because you have not secured a suitable location for your restaurant or if you terminate the Franchise Agreement because the Company requires changes to your store plans that exceed a certain cost (see Item 5). If you already own a Round Table Pizza restaurant or delivery and carry-out unit, you pay an initial franchise fee of $12,500. The Company may occasionally adopt incentive programs to encourage existing franchisees who meet certain financial and operational criteria to open or acquire additional restaurants. These programs may include waiving initial fees and royalty holidays (see Item 5). In addition, the Company may negotiate a reduced initial franchise fee if it grants the right to a franchisee to offer select products under the Round Table Pizza name in a restaurant operated under a different name.

3. You will have to acquire (by lease or purchase) a suitable site to operate your Round Table delivery and carry-out unit. Generally, leases are for a term of 10 years with 1 or more 5-year options to extend. The amounts specified for leasehold improvements, security deposit, first month’s rent (estimated to -15- 2016 range from $1,500 to $6,000 depending on square footage and whether the site is in an urban or less populated location), permits and architects’ fees and fixtures and equipment are based on the Company’s experience with its affiliate’s existing delivery and carry-out unit. These costs may vary depending on the size, condition and location of the leased premises, the landlord’s contribution to leasehold improvements, if any, supply and demand for materials and labor in your local area, local building and fire code requirements and requirements of the lease regarding such matters as construction, signage and inflation. If you choose to construct your own building, your construction costs will generally be higher than the cost specified for leasehold improvements. Newly constructed Round Table delivery and carry-out units will vary in size from 1000 to 1700 square feet.

4. The cost of insurance may be significantly higher than the estimate depending on such factors as particular state coverage requirements, store location and your loss history. Workers’ Compensation insurance is not included in the above estimate.

5. These miscellaneous start-up costs are the Company’s best estimate of such costs as deposits for installation of telephones, deposits for gas, electricity and related items, costs for initial marketing, including point of sale advertising and promotion materials, initial working capital and initial employee payroll. You may have additional expenses in starting the business. Your actual costs will depend on your management skill, experience and business acumen, your sales figures during the six month period, your ability to follow the Round Table system and local market and economic conditions. The Company’s estimate of the additional funds you may require is based on its experience with existing franchisees.

6. This is an estimate of your initial startup expenses for one Round Table delivery and carry-out unit. In preparing these estimates, the Company has relied on the experience of its franchisees, on its own experience as a franchisor and on the experience of its affiliates that operate Round Table delivery and carry-out units. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.

 


Notes for Clubhouse Model: 
1. The initial development fee varies depending on such circumstances as the size of your development area and the number of Round Table Clubhouse restaurants you must open in your area. You may pay an initial development fee calculated by multiplying a dollar amount by the number of Round Table Clubhouse restaurants you agree to develop. You may also have to pay all or a percentage of the initial franchise fee each time you sign a Franchise Agreement for a restaurant.

2. The initial franchise fee is $25,000 for your first Round Table Clubhouse restaurant. The initial franchise fee is refundable (less certain expenses) if the Company terminates you because you have not secured a suitable location for your restaurant or if you terminate the Franchise Agreement -17- 2016 because the Company requires changes to your store plans that exceed a certain cost (see Item 5). If you already own a Round Table Clubhouse restaurant, you pay an initial franchise fee of $12,500. If your Round Table Clubhouse restaurant is in a non-traditional location, you pay an initial franchise fee of $7,500. The Company may occasionally adopt incentive programs to encourage existing franchisees who meet certain financial and operational criteria to open or acquire additional restaurants. These programs may include waiving initial fees and royalty holidays (see Item 5). In addition, the Company may negotiate a reduced initial franchise fee if it grants the right to a franchisee to offer select products under the Round Table name in a restaurant operated under a different name.

3. You will have to acquire (by lease or purchase) a suitable site to operate your Round Table Clubhouse restaurant. Generally, leases are for a term of 10 years with 1 or more 5-year options to extend. The amounts specified for leasehold improvements, security deposit, first month’s rent (estimated to range from $5,000 to $12,000 depending on square footage and whether the site is in an urban or less populated location), permits and architects’ fees and fixtures and equipment are based on the Company’s experience with existing franchisees. These costs may vary depending on the size, condition and location of the leased premises, the landlord’s contribution to leasehold improvements, if any, supply and demand for materials and labor in your local area, local building and fire code requirements and requirements of the lease regarding such matters as construction, signage and inflation. If you choose to construct your own building, your construction costs will generally be higher than the cost specified for leasehold improvements. Newly constructed Round Table Clubhouse restaurants will vary in size from 4000 to 6000 square feet. Permit fees, particularly sewer and water hookup fees, vary significantly and may increase the total cost of required leasehold improvements.

4. The cost of insurance may be significantly higher than the estimate depending on such factors as particular state coverage requirements, store location and your loss history. Workers’ Compensation insurance is not included in the above estimate.

5. These miscellaneous start-up costs are the Company’s best estimate of such costs as deposits for installation of telephones, deposits for gas, electricity and related items, costs for initial marketing including point of sale advertising and promotion materials, initial working capital and initial employee payroll. You may have additional expenses in starting the business. Your actual costs will depend on your management skill, experience and business acumen, your sales figures during the three month period, your ability to follow the Round Table system and local market and economic conditions. The Company’s estimate of the additional funds you may require is based on its experience with existing franchisees.

6. This is an estimate of your initial startup expenses for one Round Table Clubhouse restaurant. These estimates may not apply to a Round Table Clubhouse restaurant in a non-traditional location. In preparing these estimates, the Company has relied on the experience of its franchisees, on its own experience as a franchisor, and on the experience of its affiliates that operate Round Table Clubhouse restaurants. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.