Pop’s Italian Beef & Sausage Franchise Cost, Revenue & Review 2026
- Investment
- $577K – $1.2M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (3)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Pop's Italian Beef & Sausage is a quick-service franchise serving Chicago-style Italian beef and sausage sandwiches. Franchisees run the shops, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Pop’s Italian Beef & Sausage franchise requires a total initial investment of $577K – $1.2M, including a $25K franchise fee and an ongoing 3.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
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 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $577K – $1.2M
- 81st pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 3.0%
- 1st pct Service Resta…
- Units
- 17
- 48th 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 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 $577K – $1.2M including a $25K franchise fee, 3.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 54/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Pop's Franchise Systems, LLC
- Incorporated in
- IL
- HQ
- 42 Long Grove Drive, Lemont, Illinois 60439
- Auditor
- George Korbakes & Co., LLP
- Audited financials
- Franchisor revenue
- $685K
- vs $559K prior year
Overview
About
- CEO
- Frank Radochonski
- Headquarters
- IL
- Founded
- 1980
- FDD year
- 2023
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 86% above the typical quick-service restaurants franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $25K | $25K | |
| Restaurant Lease (first 3 months rent), Utility & Security Depositsnot refundable | $40K | $60K | |
| Architect Feesnot refundable | $5K | $25K | |
| Leasehold Improvementsnot refundable | $200K | $500K | |
| Signagenot refundable | $1K | $30K | |
| Furniture & Fixturesnot refundable | $30K | $70K | |
| Equipmentnot refundable | $150K | $300K | |
| Point-of-Sale Equipment and Computernot refundable | $35K | $35K | |
| Office Equipment and Suppliesnot refundable | $10K | $20K | |
| Business Licenses and Permitsnot refundable | $1K | $3K | |
| Professional Feesnot refundable | $1K | $3K | |
| Initial Inventorynot refundable | $5K | $10K | |
| Insurancenot refundable | $4K | $7K | |
| Training Expensesnot refundable | $15K | $30K | |
| Grand Opening Advertisingnot refundable | $5K | $10K | |
| Additional Fundsnot refundable | $50K | $100K | |
| Total initial investment | $577K | $1.2M |
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
- $577K – $1.2M
- Bottom third — review vs category
- Liquid capital req'd
- $50K – $100K
- Bottom third — review vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 3.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $13K |
| Renewal fee | $0 |
| Inventory (initial) | $5K – $10K |
| Total fee load | 5.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Pop’s Italian Beef & Sausage makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Pop’s Italian Beef & Sausage 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 annual revenue, 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.
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: 2023 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 5.0% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 14.3% CAGR over 3 years across 17 units — operators are staying and new ones are joining.
Multi-unit rate
Only 5% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Pop’s Italian Beef & Sausage 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 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 17
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Multi-unit owners
- 4.8%
- Net growth (3-yr)
- +14.3%
- Net unit change over 3 years
- 3-yr CAGR
- +14.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 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.
2
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
13 current owners across 2 states.
- IL 11
- IN 2
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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $1.6M
- Median loan
- $538K
- average
- Charge-off rate
- Under 10 loans (3)
- Insufficient SBA coverage: 3 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (3)
- 5-yr charge-off
- Under 10 loans (3)
- Loans approved 2021+
- Active lenders
- 2
- 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
Undisclosed financials, regulatory history, and anemic unit growth create substantial due diligence gaps; the $577K–$1.2M investment is difficult to validate without Item 19 data.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
In February 2010, the franchisor agreed to a Final Judgment and Consent Decree with the Illinois Attorney General's Office resolving allegations of selling franchises without registration or proper disclosure. Franchisor paid $12,000 in penalties.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · George Korbakes & Co., LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited statements of Pop's Franchise Systems, LLC (the franchisor) for year ended Dec 31, 2022, in whole US dollars. Total Revenue $685,458 = Franchise Fee Revenues $488,184 + Vendor Contract Incentives $197,274 (the latter recorded as other_revenue). Prior year (2021) Total Revenue $559,483. Balance sheet reconciles: assets $474,114 = liabilities $21,990 + members' equity $452,124.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 54 / 100 verdict
- 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess ROI or validate 3% royalty burden
- 02MINORSlow unit growth (6.7% YoY) with only 17 locations suggests weak franchisee recruitment or retention
- 03MINOR2010 Illinois regulatory settlement for selling franchises without proper disclosure raises compliance concerns
- 04MEDHigh investment range ($577K–$1.2M) with no disclosed average revenue creates opaque unit economics
- 05MINOR10-year term locks franchisees into relationship without proven profitability data
- 06MINORSmall system size (17 units) limits operational scale, marketing leverage, and supply chain efficiency
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Territory population | 125,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 8 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Illinois (city where headquarters is located) |
| Jury trial waiver | Yes |
| Governing law | IL |
| Litigation count | 1 |
View Item 3 litigation summary
In February 2010, the franchisor agreed to a Final Judgment and Consent Decree with the Illinois Attorney General's Office resolving allegations of selling franchises without registration or proper disclosure. Franchisor paid $12,000 in penalties.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 240 hrs
- Training location
- Restaurant located in Palos Heights, Illinois, or another authorized training facility
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisor must approve site; franchisee selects within designated area
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
13 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 Pop’s Italian Beef & Sausage franchise?
The total investment to open a Pop’s Italian Beef & Sausage franchise ranges from $577K – $1.2M, 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 Pop’s Italian Beef & Sausage franchise owners earn?
Pop’s Italian Beef & Sausage makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Pop’s Italian Beef & Sausage?
Pop’s Italian Beef & Sausage is franchised by Pop's Franchise Systems, LLC. Source: FDD Item 1, 2023 filing.
What is Item 19 in the Pop’s Italian Beef & Sausage 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 Pop’s Italian Beef & Sausage FDD and qualifies whose outlets they describe.
What is Pop’s Italian Beef & Sausage's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Pop’s Italian Beef & Sausage (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 Pop’s Italian Beef & Sausage franchise locations are there?
As of their most recent FDD filing, Pop’s Italian Beef & Sausage has 17 total units in the United States, including 16 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is Pop’s Italian Beef & Sausage a good franchise to buy?
FranchiseVerdict rates Pop’s Italian Beef & Sausage as a B-grade franchise with a verdict score of 54 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?
If you represent Pop’s Italian Beef & Sausage, 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.