Pita Pit Franchise Cost, Revenue & Review 2026
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). 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 →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $353K – $685K
- 59th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 58
- 68th 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 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 $353K – $685K including a $20K franchise fee, 6.0% ongoing royalty.
- RETURNSConsolidated 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.
- 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).
- FLAG9 units terminated last reporting year (15.5% 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.
- 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 runs 21% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown18 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.
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%
- 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 |
| Inventory (initial) | $5K – $10K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Pita Pit 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 Pita Pit unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
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: 2025 FDD
Financial Performance
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.
- Item 19 type
- gross sales quartile
- Sample size
- 56
- vs category median 20 · large
- Range (low → high)
- $143K→$856K
- 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 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.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports gross sales quartile rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How Pita Pit Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 58
- Opened
- 1
- Last reporting year
- Closed
- 49
- Terminated
- 9
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 4
- Term expired, not renewed (per Item 20)
- Turnover rate
- 32.1%
- 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
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 14
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 9
- Reacquired (3yr)
- 0
- Franchisor bought back
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.
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
- 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.
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.
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)
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)
ⓘ 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 |
| 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
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?
Pita Pit 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 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. 1 new units were opened in the latest reporting year.
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), 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 Pita Pit, you can request corrections or provide updated information.
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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.