Carbone's Pizza Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Carbone's Pizza is a pizza restaurant franchise serving its signature thin-crust pizza plus Italian fare for dine-in, carryout, and delivery. Franchisees run the restaurants, managing food prep, staffing, and service.
FranchiseVerdict summary · 2026
A Carbone's Pizza franchise requires a total initial investment of $329K – $909K, including a $25K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.3M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $329K – $909K
- 55th pct Service Resta…
- Avg gross sales
- $1.3M
- Outlet subset21st pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 33
- 58th 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 $329K – $909K including a $25K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.3M/year (median $1.1M) (reported for a subset of outlets rather than the whole system).
- RISKVerdict A (Strongest tier), verdict score 65/100 (higher is better).
- DECLINESystem contracting at -8.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- M & T Pizza Incorporated
- Predecessor
- Carbone & Sons, Inc.
- Prior franchisor entity
- CEO title
- President, Secretary and Treasurer
- Thomas M. Carbone
- Incorporated in
- MN
- HQ
- 680 East Seventh Street, St. Paul, MN 55106
- Auditor
- DNJ Consulting Inc. dba DNJ & Associates
- Audited financials
- Franchisor revenue
- $2.2M
- Most recent fiscal year
Affiliated brands
- will occasionally sell products to our franchisees
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Thomas M. Carbone
- Headquarters
- MN
- Founded
- 1977
- FDD year
- 2026
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $20K | $91K |
| Equipment, build-out, other | $284K | $793K |
| Total initial investment | $329K | $909K |
Source: Carbone's Pizza 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $329K – $909K
- Middle of category vs category
- Liquid capital req'd
- $20K – $91K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 4.0%
- tiered · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $2K |
| Inventory (initial) | $10K – $20K |
| Total fee load | 5.0% of rev |
A 5.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$216K
17.0% margin
Unlevered ROIC
32%
EBITDA / total invested capital
Payback
3.1 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Carbone's Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
32%
Within the 30–60% "attractive franchise" band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Carbone's Pizza units return on equity?
Equity IRR · 5-yr
38.5%
5.10× MOIC
Year-1 DSCR
2.17×
EBITDA ÷ debt service
Equity required
$3.9M
on $12.7M purchase
Total debt
$8.8M
SBA $5.0M + senior + seller note
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: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $1.3M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- $1.1M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- average gross sales by model
- Sample size
- 17
- vs category median 20
- Range (low → high)
- $457K→$3.1M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.3M/year in gross sales. Revenue-to-investment ratio: 2.1x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 5.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -8.8% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Carbone's Pizza Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 33
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.5%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Net growth (3-yr)
- -8.8%
- Net unit change over 3 years
- 3-yr CAGR
- -8.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 96.9%
- Units that stayed open
- Ceased ops
- 3.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $984K
- Median loan
- $220K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (4 loans) — 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
- 4
- 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
Declining unit count, undisclosed profitability metrics, and ambiguous financial health create meaningful uncertainty about franchisee earnings potential and franchisor stability.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $4
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DNJ Consulting Inc. dba DNJ & Associates
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 65 / 100 verdict
- 01MINORUnit count declining 3.1% YoY (33 units) signals system contraction and potential franchisee dissatisfaction
- 02MINORTiered royalty structure (4%/3%/2%) incentivizes growth but upper tier achievers may be underserved; most franchisees likely paying 4% on revenue under $1M
- 03MINORInvestment range of $328,600–$909,250 is capital-intensive for pizza segment; break-even timeline and payback period unknown without net income data
- 04MEDNo litigation disclosed but going concern status is False — suggests potential financial instability or past restructuring; raises questions about franchisor viability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Hennepin County, Minnesota |
| Jury trial waiver | No |
| Governing law | MN |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 99 hrs
- Training location
- Carbone's Pizza restaurant in Twin Cities area
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
39 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Carbone's Pizza · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Carbone's Pizza franchise?
The total investment to open a Carbone's Pizza franchise ranges from $329K – $909K, 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 Carbone's Pizza franchise owners earn?
According to Item 19 of the Carbone's Pizza FDD, the average gross sales per unit is $1.3M. The median is $1.1M. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Carbone's Pizza 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 Carbone's Pizza FDD and qualifies whose outlets they describe.
What is Carbone's Pizza's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Carbone's Pizza (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 Carbone's Pizza franchise locations are there?
As of their most recent FDD filing, Carbone's Pizza has 33 total units in the United States, including 31 franchised units and 2 company-owned units.
Is Carbone's Pizza a good franchise to buy?
FranchiseVerdict rates Carbone's Pizza as a A-grade franchise with a verdict score of 65 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?
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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.