Overall costs for Pita Pit run anywhere from $321,431 to $496,692. See how the costs break down and what funding options might be right for your new venture into the franchise foray.
How COVID-19 affects franchising costs
Strict sanitation and employee protection measures during the coronavirus outbreak add to the typical costs you face when opening a new franchise. Paired with the unusually heavy amount of promotions that may be required by the franchise, you may not see as much in the way of profits starting out. For more information on what support is out there, read our guide to
loans for businesses affected by the coronavirus.
Estimated initial costs
Our cost estimates are accurate as of 2019 from
https://www.franchisedirect.com and include opening fees and expenses only. Your location may result in higher or lower fees.
Franchise fees
Pita Pit franchise fees total around $27,000, which beats out the $37,000 average for the 200 largest franchises nationwide.
| Initial franchise fee |
$24,000 to $30,000 |
| Estimated total |
$24,000 to $30,000 |
Equipment fees
Equipment fees total $118,302 for Pita Pit. This is less than the $180,023 average for the top 200 franchises.
| Initial furniture, fixture and equipment package |
$93,613 to $141,490 |
| Laptop computer |
$500 to $1,000 |
| Estimated total |
$94,113 to $142,490 |
Real estate fees
Real estate will set you back $218,085 for Pita Pit, thought it's less than the average of $788,376 for the top 200 franchises.
| Initial rent and security deposit |
$2,400 to $10,000 |
| Leasehold improvements |
$163,269 to $260,500 |
| Estimated total |
$165,669 to $270,500 |
Training fees
Pita Pit initial training costs total $2,100, which comes in under the nationwide average of $9,788.
| Staff and management training expense |
$1,000 to $3,200 |
| Estimated total |
$1,000 to $3,200 |
Inventory costs
Initial inventory for Pita Pit shakes out to $6,500. This is less than the nationwide average of $53,119.
| Initial inventory package |
$5,000 to $8,000 |
| Estimated total |
$5,000 to $8,000 |
Marketing costs
Advertisement and marketing costs total up to $3,751 for Pita Pit, beating out the nationwide average of $9,938.
| Store launch and daily discipline marketing program package |
$3,300 to $4,200 |
| Local advertising |
1% of net sales of the restaurant. to |
| Estimated total |
$3,301 to $4,200 |
Licenses and permits costs
Pita Pit initial licenses and permits will set you back $600. This comes out to less than $18,770 — the overall nationwide average.
| Business license |
$200 to $1,000 |
| Estimated total |
$200 to $1,000 |
Insurance costs
Initial insurance costs for Pita Pit run $486. This means you'll be paying less than the overall nationwide average of $6,311.
| Insurance |
$255 to $716 |
| Estimated total |
$255 to $716 |
Administrative fees
Pita Pit administrative fees total up to $1,500 — which comes in under the overall nationwide average of $6,761.
| Legal and accounting fees |
$500 to $2,500 |
| Audit |
Cost of audit including all costs of auditor and of the franchisoru2019s employees. |
| Estimated total |
$500 to $2,500 |
Personnel costs
Uniforms, name tags and the like make up personnel costs, and for Pita Pit it will run you $1,415. The nationwide average cost of personnel fees comes in at $22,818, which means you'll be paying less to outfit your employees.
| Uniforms and new store kit |
$1,243 to $1,586 |
| Estimated total |
$1,243 to $1,586 |
Other expenses
Miscellaneous expenses for Pita Pit total $29,325 — less than the nationwide average of $69,970.
| Opening cash |
$500 to $1,000 |
| Three months' additional funds |
$25,650 to $31,500 |
| Estimated total |
$26,150 to $32,500 |
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2019.
How to finance
The best way to finance Pita Pit comes down to your personal financial situation. What assets you have available will largely determine how much you need to borrow, and which option suits you best. Potential solutions include:
- Bank loan. Your personal credit plays a large role in getting a business term loan from a bank. Typically this type of funding is for larger amounts.
- Online loan. Credit requirements may be more flexible for an online loan than a bank loan, but amounts may max out at a lower amount — typically around $1 million.
- SBA loan. The good part about SBA loans is that they top out at $5 million, but your business has to meet a number of requirements.
- Credit card. Small costs that aren't fixed, such as stray inventory and supply purchases, may be better off on a business credit card. Just make sure you can pay it off quickly to avoid high APRs.
Also check if Pita Pit franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.
Compare small business lenders
How Pita Pit stacks up
Compare how Pita Pit holds up against two similarly sized franchises.
| Average Franchise fees |
$39,500 |
$27,000 |
$60,000 |
| Average Equipment fees |
$118,950 |
$118,302 |
$43,500 |
| Average Real estate fees |
$43,750 |
$218,085 |
$91,000 |
| Average Training fees |
$13,000 |
$2,100 |
NA |
| Average Inventory fees |
NA |
$6,500 |
$12,000 |
| Average Marketing fees |
$12,850 |
$3,751 |
$15,000 |
| Average Licenses and permits fees |
NA |
$600 |
$2,750 |
| Average Insurance fees |
$2,000 |
$486 |
$1,700 |
| Average Admin fees |
NA |
$1,500 |
$6,750 |
| Average Personnel fees |
NA |
$1,415 |
NA |
| Average Other fees |
$47,000 |
$29,325 |
$36,250 |
Bottom line
Pita Pit franchise costs run a total of $409,062. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing
read our guide to franchise financing.
