Donatos PizzaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Donatos Pizza franchise requires a total initial investment of $542K – $1.0M, including a $30K franchise fee and an ongoing 4.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 10.7% charge-off rate across 40 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $542K – $1.0M
- 85th pct Service Resta…
- Avg gross sales
- $1.2M
- 40th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 176
- 80th pct Service Resta…
- SBA default
- 10.7%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1991. Systems this mature have refined operations and brand recognition.
Franchised units fell from 125 to 121 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $542K – $1.0M including a $30K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $1.1M).
- Verdict A (Top Quintile) with a risk score of 36/100. SBA loan charge-off rate of 10.7% across 40 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Donatos Pizzeria, LLC
- Parent company
- Destiny Investment Holdings, LLC
- Predecessor
- Donatos Pizzeria
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 935 Taylor Station Road, Columbus, Ohio 43230
- Auditor
- GBQ Partners LLC
- Audited financials
- Franchisor revenue
- $97.7M
- vs $104.0M prior year
Affiliated brands
- and our predecessor
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate Donatos Pizza locations—a fast-casual pizzeria brand offering made-to-order pizza, wings, and salads. Day-to-day operations include managing 15-30 employees, inventory/food cost control, marketing execution, delivery/takeout coordination, and maintaining brand standards across dine-in, carryout, and third-party delivery channels.
- CEO
- Kevin King
- Headquarters
- OH
- Founded
- 1963
- FDD year
- 2025
- States available
- 11
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $20K | $25K |
| Equipment, build-out, other | $492K | $983K |
| Total initial investment | $542K | $1.0M |
Source: Donatos Pizza 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$204K
17.0% margin
Unlevered ROIC
25%
EBITDA / total invested capital
Payback
4.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $542K – $1.0M
- Below avg, review vs category
- Liquid capital req'd
- $20K – $25K
- Near category avg vs category
- Franchise fee
- $24K – $30K
- Better than avg vs category
- Royalty
- 4.0%
- percentage · 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 |
| Technology fee | $185 |
| Transfer fee | $15K |
| Renewal fee | $15K |
| 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.
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.1M
- Item 19 type
- net_sales
- Sample size
- 161 units
- vs category median 28 · large
- Range (low → high)
- $498K→$2.5M
- Cohort dispersion (min → max)
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Donatos Pizza Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 176
- Opened
- 4
- Last reporting year
- Closed
- 6
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.4%
- Company-owned
- 51
- Corporate units in the system
- % franchised
- 71%
- vs corporate-owned
- Net growth (yr3)
- -1.6%
- Net unit change last year
- 3-yr CAGR
- +3.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 10
- Franchisor's next-year forecast
- Ceased ops
- 3.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 40
- Loan volume
- $14.5M
- Median loan
- $332K
- 50th percentile
- Charge-off rate
- 10.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 88.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 3
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Donatos Pizza's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 11 states
- Startup risk premium and job creation velocity
- 18-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Donatos presents meaningful investment risk due to declining unit economics, undisclosed profitability data, historical litigation tied to current leadership, and lack of Item 19 disclosure—warranting deep franchisee validation before committing $541K-$1M.
Litigation (Item 3)
No litigation required to be disclosed in Item 3
Largest disclosed settlement: $4
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · GBQ Partners LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 36 / 100 rating
- 01MINORDeclining unit count (-1.6% YoY) suggests system contraction and potential franchisee struggles
- 02MEDNo disclosed net income data prevents accurate ROI assessment despite $541K-$1M investment requirement
- 03HIGHMaterial litigation history (2014-2020) involving current Donatos officers raises governance and disclosure concerns
- 04MINORHigh investment-to-revenue ratio ($541K-$1M capex vs. $1.2M avg revenue) creates thin margin for error
- 05MINORAbsence of Item 19 financial performance representation limits franchisee ability to validate earnings claims
- 06MED10-year term with 4% royalty may not provide sufficient break-even runway given unit decline trajectory
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Area of Primary Delivery Responsibility |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 2 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 270 hrs
- Training location
- Certified Training Restaurant, Home Office Columbus Ohio, The Restaurant to be opened
- Field support
- 627 hrs/yr
- On-site visits per year
- POS system
- TRIO Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TRIO Software
Item 20 · call current owners
Franchisee Contacts
99 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Donatos Pizza · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Donatos Pizza franchise?
The total investment to open a Donatos Pizza franchise ranges from $542K – $1.0M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Donatos Pizza franchise owners earn?
According to Item 19 of the Donatos Pizza FDD, the average gross sales per unit is $1.2M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Donatos Pizza's franchise failure rate?
Based on SBA 7(a) loan data, Donatos Pizza has a charge-off rate of 10.7% across 40 loans, meaning 10.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Donatos Pizza franchise locations are there?
As of their most recent FDD filing, Donatos Pizza has 176 total units in the United States, including 125 franchised units and 51 company-owned units. 4 new units were opened in the latest reporting year.
Is Donatos Pizza a good franchise to buy?
FranchiseVerdict rates Donatos Pizza as a A-grade franchise with a risk score of 36 out of 100, 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.
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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.