Pita Pit Franchise Cost, Revenue & Review 2026
- Investment
- $353K – $685K
- Disclosed sales
- $397K
- gross sales, not profit
- SBA charge-off
- 23.5%
- on 83 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Pita Pit is a fast-casual franchise serving made-to-order pita sandwiches packed with fresh, customizable fillings. Franchisees run the restaurants, managing food prep, staffing, and counter and delivery service.
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]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $353K – $685K
- 58th pct Service Resta…
- Avg gross sales
- $397K
- 2nd pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 58
- 67th pct Service Resta…
- SBA charge-off
- 23.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · 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 $353K – $685K including a $20K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $397K/year.
- RISKVerdict F (Weakest tier), verdict score 24/100 (higher is better). 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, 2010–2025).
- GROWTHNegative: net -18 franchised outlets in the latest year (0 opened, 18 closed) (Item 20).
- FLAG3 units terminated last reporting year (5.2% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Pita Pit Franchising, LLC
- Parent company
- Pita Pit USA 4.0, Inc.
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- Pita Pit USA, Inc. / Pita Pit Inc.
- Prior franchisor entity
- CEO title
- Corporate Director, CEO and President
- Peter J. Riggs
- Incorporated in
- Idaho
- 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
- CEO
- Peter J. Riggs
- Headquarters
- ID
- Founded
- 2002
- FDD year
- 2025
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost is about typical for a quick-service restaurants franchise (near the category median).
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| FRANCHISE FEE | $20K | $20K | |
| INITIAL RENT & SECURITY DEPOSIT | $2K | $10K | |
| OPENING CASH | $800 | $2K | |
| LEASEHOLD IMPROVEMENTS | $190K | $400K | |
| BUSINESS LICENSE | $200 | $1K | |
| INSURANCE | $275 | $750 | |
| STORE LAUNCH AND LOCAL MARKETING PROGRAM PACKAGE | $3K | $5K | |
| LEGAL & ACCTG FEES AND SOFTWARE | $500 | $3K | |
| INITIAL FURN., FIX., EQUIP. PKG | $98K | $185K | |
| STAFF AND MANAGEMENT TRAINING EXPENSE | $1K | $7K | |
| UNIFORMS & NEW STORE KIT | $1K | $2K | |
| INITIAL INVENTORY PACKAGE | $5K | $10K | |
| ADDITIONAL FUNDS (for 3 months) | $26K | $38K | |
| LOCAL ADVERTISING | — | — | |
| LAPTOP COMPUTER | $500 | $1K | |
| LAPTOP COMPUTER MONTHLY SOFTWARE FEES | $5 | $70 | |
| ONLINE ORDERING, GIFT CARD & LOYALTY PROGRAM | $495 | $650 | |
| Total initial investment | $349K | $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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $353K – $685K
- Middle of category vs category
- Liquid capital req'd
- $26K – $38K
- Middle of category vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- 6.0%
- 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 net sales |
| Marketing / ad fund | 2.0% of net sales |
| Transfer fee | $7K |
| Renewal fee | $20K |
| Inventory (initial) | $5K – $10K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 59% below the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Pita Pit until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$551K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Pita Pit unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- Avg gross sales
- $397K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales quartile
- Sample size
- 56 outlets
- vs category median 19 · large
- Range (low → high)
- $143K→$856KCited, not corroborated — printed on page 54 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $194K→$639K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
Compared against 781 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.
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 $397K/year in gross sales. Revenue-to-investment ratio: 0.8x.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System contracting at -42.9% 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 medians
How Pita Pit Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 58
- Opened
- 0
- Last reporting year
- Closed
- 18
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 31.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- -42.9%
- Net unit change over 3 years
- 3-yr CAGR
- -42.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 1
- Transferred
- 40
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 7
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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.
Where the owners are · Item 20 owner list
55 current owners across 22 states.
- WA 10
- IA 5
- MT 5
- OR 5
- AK 4
- CA 4
- GA 2
- ID 2
- SD 2
- UT 2
- WI 2
- WV 2
- +10 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 83 loans · 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
- Typical loan rate
- 6.6%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand above franchise avg ↑
- Jobs supported
- 735
- 6.3 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 73% went to startups / new businesses, 27% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 21.5% vs 25.0% for independents — franchising is associated with 14% lower SBA default risk in this category.
Vintage analysis
Pita Pit charge-off rate by loan vintage
Top lenders financing Pita Pit franchisees
Showing 3 of 43 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Pita Pit from SBA 7(a) FOIA data.
- Principal loss rate
- 28.4%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 6.56%
- Avg chargeoff amount
- $159K
- Lender concentration
- 14.0%
- Job velocity
- 6.3 per $100K
- NAICS benchmark
- 15.7%
- NAICS 722211
- Jobs supported
- 735
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Popular Bank | 8 | $1.3M | 50.0% |
| 2 | The Huntington National Bank | 7 | $780K | 0.0% |
| 3 | Readycap Lending, LLC | 6 | $1.3M | 66.7% |
| 4 | Midland States Bank | 5 | $1.4M | 75.0% |
| 5 | SouthState Bank, National Association | 2 | $467K | 50.0% |
| 6 | Farmers State Bank | 2 | $424K | 0.0% |
| 7 | Columbia Bank | 2 | $80K | 0.0% |
| 8 | Arvest Bank | 2 | $286K | 0.0% |
| 9 | CFBank National Association | 1 | $175K | 100.0% |
| 10 | First Citizens Bank | 1 | $110K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 12 | 4 | 40.0% |
| CACalifornia | 6 | 4 | 66.7% |
| IAIowa | 5 | 0 | 0.0% |
| OHOhio | 4 | 1 | 25.0% |
| WAWashington | 4 | 2 | 66.7% |
| IDIdaho | 3 | 2 | 66.7% |
| KSKansas | 3 | 1 | 33.3% |
| TXTexas | 3 | 2 | 100.0% |
| ARArkansas | 2 | 0 | 0.0% |
| GAGeorgia | 2 | 1 | 50.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 23.5% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 23.5% — 46% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Anastasi, Moore & Martin, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated financial statements of Pita Pit Franchising, LLC (the franchisor) for the period March 7, 2023 to December 31, 2023 (inception period; only one audited period presented). Revenues comprise Royalties $1,274,303 and Rebates $479,170 (total $1,753,473). other_revenue reflects Rebates. Balance sheet as of Dec 31, 2023 reconciles: total assets $1,060,674 = total liabilities $224,200 + member's equity $836,474. Figures in whole US dollars.
ⓘ 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
Score breakdown · what drove the 24 / 100 verdict
- 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
- 04MINORNo 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
What are you signing up for?
Ongoing fees run about 8.0% 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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rights | 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 | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Coeur d'Alene, Idaho |
| Jury trial waiver | No |
| Governing law | ID |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 43 hrs
- Training location
- Pita Pit National Training Center, Coeur d'Alene, Idaho
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Brink POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Brink POS
Item 20 · call current owners
Franchisee Contacts
55 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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.
Who owns Pita Pit?
Pita Pit is franchised by Pita Pit Franchising, LLC. Its parent company is Pita Pit USA 4.0, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Pita Pit 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 Pita Pit FDD and qualifies whose outlets they describe.
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, including 56 franchised units and 2 company-owned units.
Is Pita Pit a good franchise to buy?
FranchiseVerdict rates Pita Pit as a F-grade franchise with a verdict score of 24 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.