Mountain Mike’s

Investment

Our initial investment falls between $225,800 and $596,000, depending on the type of location you choose, according to Item 7 in our latest Franchise Disclosure Document (FDD). See the full chart below.

A Detailed Look

Becoming a Mountain Mike's franchisee grants you access to real estate and construction expertise, a modern up-to-date restaurant design, established successful training and operational standards and the invaluable experience of what works and what doesn’t. We also introduce you to lending partners who may work with franchise candidates. That’s a lot of support wrapped up in a restaurant launch package backed by one of the most experienced restaurant franchisors.
 AMOUNTMETHOD OF PAYMENTWHEN DUETO WHOM PAYMENT IS TO BE MADE
Initial Franchise Fee (1)$15,000 – $30,000Lump SumOn signing Franchise AgreementMountain Mike’s – Us
Leasehold Improvements (2)$50,000 – $200,000As AgreedAs IncurredSelected/Approved Contractors
Architectural and
Engineering Fees (2)
$10,000 - $18,000As AgreedAs IncurredUse Professionals
Furniture, Fixtures, and Equipment (3)$60,000 – $150,000As AgreedAs IncurredApproved Vendors
Signage$4,000 – $12,000As AgreedAs IncurredSelected/Approved Contractors
POS/Electronic Information System (4)$6,500 – $18,000As AgreedAs IncurredApproved POS and Other Approved Vendors
Three Months’ Rent (5)$12,000 – $40,000Lump SumAs specified in lease or subleaseLandlord
Security Deposit (5)$4,000 – $12,000Lump SumOn signing lease or subleaseLandlord
Opening Inventory and Supplies (6)$10,000 – $14,000As AgreedAs IncurredSelected/Approved Contractors
Grand Opening Marketing Fee (6)$4,000Lump SumOn signing Franchise AgreementMountain Mike’s – Us
Décor Package (8)$4,000 – $9,000As AgreedAs IncurredApproved Vendors
Training Expenses (for all attendees)$1,300 – $4,000As IncurredAs IncurredWorking Capital Reserves
Miscellaneous Opening Costs (9)$20,000 – $40,000As IncurredAs IncurredWorking Capital Reserves
Additional Funds – 3 months (10)$25,000 – $45,000As IncurredAs IncurredWorking Capital Reserves
TOTAL ESTIMATED INITIAL INVESTMENT
(excluding real estate purchase costs) (11)
$225,800 – $596,000

Explanatory Notes

  1. MMP describes the initial franchise fee in Item 5.

  2. The Restaurant’s premises typically is in an end-cap or in-line location in a shopping center. A Restaurant is approximately 2,500 to 4,000 square feet. Leasehold improvement costs, which include floor covering, wall treatment, counters, ceilings, painting, window coverings, electrical, carpentry, and similar work, and contractor’s fees, depend on the condition, location, and size of the premises; the demand for the premises among prospective lessees; whether the premises previously was used as a restaurant; the build-out required to make the premises suitable for your Restaurant; and any construction or other allowances the landlord grants. You must obtain professional architectural and engineering drawings for your Restaurant. You may use one of our preferred architects or another architect we approve to prepare a preliminary floor plan, store design color renderings, and construction drawings. We anticipate that you will rent the premises for the Restaurant, but you may purchase the property for your Restaurant. The estimate in the table above does not include the cost of constructing the building if you purchase the property. You may also receive an allowance, credit, rebate, or rent abatement from your landlord to offset the remodeling and build-out costs you will incur to conform the Premises for the Restaurant. Your leasehold improvement costs may be offset if your landlord provides such an allowance, credit, rebate, or rent abatement.

  3. This item includes sinks, refrigerators, ovens, stoves, ventilation systems, display cases, tables, chairs, booths, utensils, a phone system and facsimile machine, and office supplies. The range depends on whether any used equipment remains at the premises you take over.

  4. MMP describes the POS/electronic information system in Item 11.

  5. The rent and security deposit depend on the size, condition, and location of the premises and the demand for the premises among prospective lessees.

  6. This figure is for food products, materials, smallwares, and supplies necessary to open the Restaurant under MMP’s required standards and specifications.

  7. This item covers interior signage, pictures, and other decor items.

  8. This item covers miscellaneous opening costs and expenses, including installing telephones; deposits for gas, electricity, and similar items; business licenses (including beer and wine); legal and accounting expenses; and insurance premiums.

  9. This item estimates your initial start-up expenses (other than the items identifiedseparately in the table). These expenses include payroll costs but not any draw or salary for you or your owners. These figures are estimates, and it is possible you will need additional working capital during the first 3 months you operate your Restaurant and for a longer time period after that. This 3-month period is not intended, and should not be interpreted, to identify a point at which your Restaurant will break even. Your costs depend on how much you follow MMP’s methods and procedures; your management skill, experience, and business acumen; local economic conditions; the local market for your products and services; the prevailing wage rate; competition; and the sales level reached during the initial period. MMP relied on its principals’ many years of experience franchising Mountain Mike’s® Pizza Restaurants to compile this Additional Funds estimate.

  10. You should review these figures carefully with a business advisor before deciding to acquire the franchise. MMP does not offer financing directly or indirectly for any part of the initial investment. The availability and terms of financing will depend on many factors, including the availability of financing generally, your creditworthiness and collateral, and lending policies of the financial institutions from which you request a loan.