03: What do I get for my money?

There is a franchise royalty fee, which is 6% of the net sales. At the start of the franchise agreement there is an initial fee payable for each unit and this gives you the right to use the Pizza Hut trademarks, its system for preparing, marketing and selling food products, its information, specifications, know-how and other confidential and proprietary information for a five-year period. Included in the indicative total investment cost, there is also some allowance (not part of the initial fee) for management and staff training and initial marketing support prior to opening, although these also depend on the particular area in which you choose to operate. Most of the start-up costs are comprised of building fit-out and equipment costs which will vary, depending on your site. The initial franchise is granted for a period of 10 years. Assuming the Franchisee meets renewal criteria and pays the current renewal fees, an additional 10 years will be available at the same contractual and financial terms.