Pop’s Italian Beef & Sausage Franchise Cost, Revenue & Review 2026
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]. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $577K – $1.2M
- 82nd 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 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 $577K – $1.2M including a $25K franchise fee, 3.0% ongoing royalty.
- RETURNSAudited 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.
- RISKVerdict B (Above average), verdict score 54/100 (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
- 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 37% 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%
- percentage · 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 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 Pop’s Italian Beef & Sausage unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
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: 2023 FDD
Financial Performance
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.
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 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 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 averages
How Pop’s Italian Beef & Sausage Compares
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
- 0.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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)
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
- N/A
- limited sample (3 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
- 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)
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.
Largest disclosed settlement: $12,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · George Korbakes & Co., LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 |
| 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
FDD download
Pop’s Italian Beef & Sausage · FDD (2023) PDF
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 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 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), 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?
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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.