Pita PitFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Pita Pit franchise requires a total initial investment of $353K – $685K, including a $20K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $397K[2]. SBA 7(a) loans show a 23.5% charge-off rate across 83 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $353K – $685K
- 67th pct Service Resta…
- Avg gross sales
- $397K
- 5th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 58
- 64th pct Service Resta…
- SBA default
- 23.5%
- 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
At 0.8x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
23.5% of SBA loans charged off across 83 loans, above the 16% franchise average.
The system contracted 24% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $353K – $685K including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $397K/year.
- Verdict D (Below Average) with a risk score of 70/100. SBA loan charge-off rate of 23.5% across 83 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -42.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Pita Pit Franchising, LLC
- Parent company
- Pita Pit USA 4.0, Inc.
- Predecessor
- section below
- Prior franchisor entity
- Incorporated in
- ID
- HQ
- 105 N. 4th Street, Suite 201, Coeur d’Alene, Idaho 83814
- Auditor
- Anastasi, Moore & Martin, PLLC
- Audited financials
- Franchisor revenue
- $1.8M
- vs $4.6M prior year
Overview
About
Franchisees operate quick-service pita/Mediterranean restaurants, managing daily food preparation, staffing, POS systems, and customer service. Operations typically span breakfast to dinner with emphasis on customizable menu items and fast-casual positioning. Franchisees handle local marketing, inventory management, and compliance with corporate standards across a protected territory.
- CEO
- Peter J. Riggs
- Headquarters
- ID
- Founded
- 2002
- FDD year
- 2025
- States available
- 23
FDD Item 7 · 2025 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $20K | $20K | |
| Initial Rent & Security Deposit | $2K | $10K | |
| Opening Cashnot refundable | $800 | $2K | |
| Leasehold Improvementsnot refundable | $190K | $400K | |
| Business Licensenot refundable | $200 | $1K | |
| Insurance | $275 | $750 | |
| Store Launch and Local Marketing Program Packagenot refundable | $3K | $5K | |
| Legal & Acctg Fees and Softwarenot refundable | $500 | $3K | |
| Initial Furniture, Fixtures, Equipment Packagenot refundable | $98K | $185K | |
| Staff and Management Training Expensenot refundable | $1K | $7K | |
| Uniforms & New Store Kitnot refundable | $1K | $2K | |
| Initial Inventory Packagenot refundable | $5K | $10K | |
| Additional Funds (for 3 months)not refundable | $26K | $38K | |
| Local Advertisingnot refundable | — | — | |
| Laptop Computernot refundable | $500 | $1K | |
| Laptop Computer Monthly Software Feesnot refundable | $5 | $70 | |
| Online Ordering, Gift Card & Loyalty Programnot refundable | $495 | $650 | |
| Development Feenot refundable | $45K | — | |
| Total initial investment | $394K | $685K |
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.
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
$56K
14.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
9.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $353K – $685K
- Near category avg vs category
- Liquid capital req'd
- $26K – $38K
- Below avg, review vs category
- Franchise fee
- $20K – $20K
- Better than avg vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $7K |
| Renewal fee | $20K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $397K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 56 units
- vs category median 28
- Range (low → high)
- $143K→$856K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Pita Pit Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 58
- Opened
- 0
- Last reporting year
- Closed
- 18
- Turnover rate
- 31.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- -24.3%
- Net unit change last year
- 3-yr CAGR
- -42.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 9
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 22 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 83
- Loan volume
- $17.2M
- Median loan
- $215K
- 50th percentile
- Charge-off rate
- 23.5%
- 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)
- 76.5%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 43
- Defaults
- 19
Vintage analysis
Pita Pit charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Pita Pit'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 15 states
- Startup risk premium and job creation velocity
- 12-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 23.5% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pita Pit's 24% annual unit decline combined with undisclosed profitability and high investment requirements signals a franchise system in contraction with questionable unit economics.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $50,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Anastasi, Moore & Martin, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 70 / 100 rating
- 01MEDUnit count declined 24.3% YoY (58 units remaining) — indicates systemic contraction and potential franchisee dissatisfaction
- 02MINORNo net income disclosure despite $396k average revenue — suggests thin or negative margins after operating expenses
- 03MINORHigh investment-to-revenue ratio (53-173% of initial investment annually) with 6% royalty burden leaves minimal profit potential
- 04HIGHNo going concern statement is positive, but dramatic unit loss suggests underlying business model stress
- 05MINORQuick-service restaurant sector facing labor cost, food inflation, and consumer traffic pressures not addressed in disclosure
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 | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Termination notice | 10 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Idaho |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 46 hrs
- Training location
- On-site at franchisee's restaurant
- Franchisor financing
- Not offered
- Item 10
- POS system
- Brink
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Brink
Item 20 · call current owners
Franchisee Contacts
55 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pita Pit · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pita Pit franchise?
The total investment to open a Pita Pit franchise ranges from $353K – $685K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pita Pit franchise owners earn?
According to Item 19 of the Pita Pit FDD, the average gross sales per unit is $397K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Pita Pit's franchise failure rate?
Based on SBA 7(a) loan data, Pita Pit has a charge-off rate of 23.5% across 83 loans, meaning 23.5% 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 Pita Pit franchise locations are there?
As of their most recent FDD filing, Pita Pit has 58 total units in the United States.
Is Pita Pit a good franchise to buy?
FranchiseVerdict rates Pita Pit as a D-grade franchise with a risk score of 70 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.