Franchise Costs

The total investment necessary to begin operation of a LaPaella Franchise ranges from $598,000 to $903,000. This includes $40,000 that must be paid to us.

INITIAL FRANCHISE FEE

The Initial Franchise Fee for a Franchise Business varies as follows:
New Franchise $40,000
Veteran2 Franchisee 12.5% discount from then-current Initial Franchise Fee

DEVELOPMENT FEE

When you sign the Area Development Agreement, you will pay us a Development Fee equal to $150,000 times the number of Franchise Businesses (other than the first Franchise Business) you agree to develop under the Area Development Agreement. We fully earn the Development Fee and it becomes non-refundable. When you sign each Franchise Agreement for each Franchise Business developed (other than the first Franchise Business), you will receive a credit of $15,000 against the Initial Franchise Fee then due.

OTHER FEES

Royalty Fee1 5% of weekly Gross Revenues
Advertising Contributions to the Media Fund1 4% of weekly Gross Revenues
Renewal Fee1 50% of the the current Initial Franchise Fee

YOUR ESTIMATED INITIAL INVESTMENT – SINGLE UNIT FRANCHISE

$598,000 to $903,000