LaRosa’s Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
LaRosa's is a regional Italian restaurant franchise known for its signature pizza and family-style menu. Franchisees run the restaurants, managing dine-in, carryout, and delivery along with food prep and staffing.
FranchiseVerdict summary · 2026
A LaRosa’s franchise requires a total initial investment of $1.4M – $2.6M, including a $25K franchise fee and an ongoing 4.0% royalty[2]. The 2024 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 2024 FDD issuance
Overview
- Investment
- $1.4M – $2.6M
- 97th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 64
- 70th 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 $1.4M – $2.6M including a $25K franchise fee, 4.0% ongoing royalty.
- RETURNSFolder contains only the FDD cover page and the Ohio state intro/cover page for LaRosa's, Inc. (effective April 10, 2024). No Item 21 audited financial statements, balance sheet, income statement, or Independent Auditor's Report is present in these images, so no financial figures could be extracted.
- RISKVerdict A (Strongest tier), verdict score 61/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- LaRosa's, Inc.
- Parent company
- LaRosa's Holding Company
- CEO title
- Chairman of the Board and Chief Executive Officer
- Michael T. LaRosa
- Incorporated in
- OH
- HQ
- 2334 Boudinot Avenue, Cincinnati, Ohio 45238
- Franchisor revenue
- $52.2M
- Most recent fiscal year
Overview
About
- CEO
- Michael T. LaRosa
- Headquarters
- OH
- Founded
- 1965
- FDD year
- 2024
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 206% above the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown8 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $25K | $25K | |
| Initial One Number Feenot refundable | $10K | $10K | |
| Training Expenses (travel & lodging) | $1K | $5K | |
| Real Property | $400K | $900K | |
| Equipment, fixtures, fixed assets, construction, remodeling & leasehold improvements | $750K | $1.5M | |
| Opening Inventory | $15K | $15K | |
| Additional funds (initial 3 months) | $100K | $100K | |
| Insurance | $30K | $40K | |
| Total initial investment | $1.3M | $2.6M |
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
- $1.4M – $2.6M
- Bottom third — review vs category
- Liquid capital req'd
- $100K – $100K
- Bottom third — review vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 4.0%
- percentage · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 11.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $220 |
| Transfer fee | $1K |
| Renewal fee | $500 |
| Inventory (initial) | $15K – $15K |
| Total fee load | 11.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
LaRosa’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 LaRosa’s unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
5%
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: 2024 FDD
Financial Performance
Folder contains only the FDD cover page and the Ohio state intro/cover page for LaRosa's, Inc. (effective April 10, 2024). No Item 21 audited financial statements, balance sheet, income statement, or Independent Auditor's Report is present in these images, so no financial figures could be extracted.
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 11.5% — above the Quick-Service Restaurants average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System roughly stable (-1.8% 3-year CAGR) with 64 units.
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 LaRosa’s Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 64
- Opened
- 2
- Last reporting year
- Closed
- 3
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.5%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Net growth (3-yr)
- -1.8%
- Net unit change over 3 years
- 3-yr CAGR
- -1.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 1
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 6.3%
- Owners selling to other franchisees
- Ceased ops
- 4.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 4 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.
4
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $3.0M
- Median loan
- $598K
- average
- Charge-off rate
- N/A
- limited sample (5 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
LaRosa's presents meaningful caution due to shrinking unit count, lack of financial transparency (no Item 19), high capital requirements, and weak system scale—suitable only for investors who can independently validate unit economics with current franchisees.
Litigation (Item 3)
No litigation is currently required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
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 61 / 100 verdict
- 01MINORUnit count declining 3.5% YoY indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02MED64-unit system is relatively small; limited scale creates operational vulnerability and reduces support infrastructure compared to larger franchisors
- 03MINOR10-year term is longer than industry standard (5–7 years typical), locking franchisees into unfavorable renewal negotiations
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 11.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · 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 |
| 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 | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Governing law | OH |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is currently required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 128 hrs
- On-the-job training
- 552 hrs
- Training location
- Training Pizzeria (company-owned restaurant) in Greater Cincinnati area
- Ongoing training
- Required
- Field support
- 280 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- POS system
- PartnerTech (POS); One Number System; software supplied by pointofsale.cloud
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: PartnerTech (POS); One Number System; software supplied by pointofsale.cloud
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a LaRosa’s franchise?
The total investment to open a LaRosa’s franchise ranges from $1.4M – $2.6M, 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 LaRosa’s franchise owners earn?
LaRosa’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 LaRosa’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 LaRosa’s FDD and qualifies whose outlets they describe.
What is LaRosa’s's franchise failure rate?
SBA 7(a) loan charge-off data is not available for LaRosa’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 LaRosa’s franchise locations are there?
As of their most recent FDD filing, LaRosa’s has 64 total units in the United States, including 55 franchised units and 9 company-owned units. 2 new units were opened in the latest reporting year.
Is LaRosa’s a good franchise to buy?
FranchiseVerdict rates LaRosa’s as a A-grade franchise with a verdict score of 61 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 LaRosa’s, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.