Amato's Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Amato's is a New England quick-service franchise known as the home of the original Italian sandwich, plus pizza and deli fare. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Amato's franchise requires a total initial investment of $435K – $738K, including a $25K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $435K – $738K
- 70th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 53
- 66th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $435K – $738K including a $25K franchise fee, 6.0% ongoing royalty.
- RETURNSAudited financials are for Reali Holding Company, Inc. d/b/a Amato's. FY2024 total income $1,012,830 = royalties $975,330 + franchise fees $37,500. Interest and dividend income of $33,971 is reported separately as other income (excluded from total income). Auditor opinion dated July 15, 2025, Cumberland Foreside, Maine.
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHSystem growing at 24.2% CAGR over 3 years with 53 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Reali Holdings Company, Inc. d/b/a Amato's
- Ultimate parent
- Amato's Sandwich Shops Inc. (ASSI)
- Predecessor
- Amato's Sandwich Shops Inc. (ASSI)
- Prior franchisor entity
- CEO title
- President & Owner
- Dominic Reali
- CEO experience
- 50 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- ME
- HQ
- 312 St. John Street, Portland, Maine 04102
- Auditor
- McLeod Ascanio (McLeod | Ascanio, Certified Public Accountants)
- Audited financials
- Franchisor revenue
- $1.0M
- vs $980K prior year
Overview
About
- CEO
- Dominic Reali
- Headquarters
- ME
- Founded
- 2002
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 11% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $15K | $25K | |
| Real Estate/Rent | $20K | $70K | |
| Utility Deposits | $2K | $5K | |
| Leasehold Improvements | $40K | $250K | |
| Furniture, Fixtures & Equipment | $80K | $250K | |
| Initial Inventory | $10K | $25K | |
| Insurance | $3K | $9K | |
| Signage | $3K | $35K | |
| Office Equipment & Supplies | $1K | $15K | |
| Grand Opening | $1K | $8K | |
| Training | $2K | $12K | |
| Legal/Accounting/Licenses/Permits | $2K | $4K | |
| Additional Funds (3 months) | $10K | $30K | |
| Total initial investment | $189K | $738K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $435K – $738K
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $30K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $13K |
| Inventory (initial) | $15K – $25K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Amato's did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Amato's unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
18%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Audited financials are for Reali Holding Company, Inc. d/b/a Amato's. FY2024 total income $1,012,830 = royalties $975,330 + franchise fees $37,500. Interest and dividend income of $33,971 is reported separately as other income (excluded from total income). Auditor opinion dated July 15, 2025, Cumberland Foreside, Maine.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 24.2% CAGR over 3 years across 53 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Amato's Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 53
- Opened
- 5
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 12
- Corporate units in the system
- % franchised
- 77%
- vs corporate-owned
- Net growth (3-yr)
- +24.2%
- Net unit change over 3 years
- 3-yr CAGR
- +24.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $197K
- Median loan
- $197K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Amato's presents CAUTION-level risk due to absent financial disclosures, unprotected territories, unclear going concern status, and wide cost variance that obscures true profitability potential.
Litigation (Item 3)
No litigation is required to be disclosed in this Disclosure Document.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · McLeod Ascanio (McLeod | Ascanio, Certified Public Accountants)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 76 / 100 verdict
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or break-even timelines
- 02MINORUnprotected territory creates direct competition risk; multiple franchisees could cannibalize same market
- 03HIGHGoing Concern status is FALSE — indicates potential financial instability or debt burden at corporate level
- 04MINOR13.9% YoY growth is modest for a growing franchise; does not offset lack of financial transparency
- 05MINORShort 5-year term limits franchisee upside and creates uncertainty for multi-year payback models
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Portland, Maine |
| Jury trial waiver | No |
| Governing law | ME |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Disclosure Document.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 140 hrs
- Training location
- Portland, Maine
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 4 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
8 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Amato's · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Amato's franchise?
The total investment to open a Amato's franchise ranges from $435K – $738K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Amato's franchise owners earn?
Amato's does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Amato's FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Amato's FDD and qualifies whose outlets they describe.
What is Amato's's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Amato's (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Amato's franchise locations are there?
As of their most recent FDD filing, Amato's has 53 total units in the United States, including 41 franchised units and 12 company-owned units. 5 new units were opened in the latest reporting year.
Is Amato's a good franchise to buy?
FranchiseVerdict rates Amato's as a A-grade franchise with a verdict score of 76 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Amato's, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.