Rosati's Pizza Franchise Cost, Revenue & Review 2026
- Investment
- $147K – $501K
- Disclosed sales
- $670K
- gross sales, not profit
- SBA charge-off
- 17.1%
- on 121 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Rosati's Pizza is a Chicago-style pizza franchise serving thin-crust and deep-dish pizzas, Italian dishes, and sandwiches for dine-in, carryout, and delivery. Franchisees run restaurants managing food prep, delivery, and staffing.
FranchiseVerdict summary · 2026
A Rosati's Pizza franchise requires a total initial investment of $147K – $501K, including a $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $670K[2]. SBA 7(a) loans show a 17.1% charge-off rate across 121 loans[1]. 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: 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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $147K – $501K
- 6th pct Service Resta…
- Avg gross sales
- $670K
- 2nd pct Service Resta…
- Royalty
- 5.0%
- 8th pct Service Resta…
- Units
- 131
- 33rd pct Service Resta…
- SBA charge-off
- 17.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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 $147K – $501K including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $670K/year (median $612K).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 17.1% across 121 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +5 franchised outlets in the latest year (48 opened, 43 closed); 18 signed but not yet open (Item 20).
- FLAG10 units terminated last reporting year (7.6% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Rosati's Pizza Enterprises, Inc.
- Ultimate parent
- Rosati's Franchise Systems, Inc. (RFSI)
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- Rosati's Franchising, Inc. (RFI)
- Prior franchisor entity
- CEO title
- Director and President
- Anthony M. Rosati
- CEO experience
- 32 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Texas
- HQ
- 1320 Arrow Point Drive, Suite 50190, Cedar Park, Texas 78613
- Auditor
- Eccezion Strategic Business Solutions
- Audited financials
- Franchisor revenue
- $5.9M
- vs $7.1M prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Hampshire Pizza
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Anthony M. Rosati
- Headquarters
- TX
- Founded
- 1964
- FDD year
- 2025
- States available
- 17
Can you afford it, and what does the money buy?
Entry cost runs 52% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fees (Carryout/Delivery Restaurant)not refundable | $35K | $35K | |
| Travel and Living Expenses While Training (Carryout/Delivery) | $2K | $10K | |
| Rent / Real Estate Deposit (Carryout/Delivery) | $3K | $15K | |
| Utility and Miscellaneous Security Deposits (Carryout/Delivery) | $2K | $10K | |
| Leasehold Improvements (Carryout/Delivery) | $25K | $175K | |
| Signage (Carryout/Delivery) | $5K | $15K | |
| Furniture, Fixtures, and Equipment (Carryout/Delivery) | $55K | $150K | |
| Opening Inventory (Carryout/Delivery) | $7K | $15K | |
| Insurance (Carryout/Delivery) | $2K | $3K | |
| Uniforms (Carryout/Delivery) | — | — | |
| Office Equipment and Supplies (Carryout/Delivery) | $500 | $3K | |
| Professional Fees (Carryout/Delivery) | $5K | $20K | |
| Licensing and Permits (Carryout/Delivery) | $2K | $20K | |
| Additional Funds (for First 3 Months) (Carryout/Delivery) | $5K | $30K | |
| Total initial investment | $147K | $501K |
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
- $147K – $501K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $30K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $415 |
| Training fee | $35K |
| Transfer fee | $18K |
| Renewal fee | $5K |
| Inventory (initial) | $7K – $15K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 58% below the full-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 Rosati's Pizza 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
$341K
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 Rosati's Pizza 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
- $670K
- Per unit, per year
- Median gross sales
- $612K
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
- Sample size
- 81 outlets
- vs category median 18 · large
- Range (low → high)
- $111K→$1.8MCited, not corroborated — printed on page 81 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 801 Full-Service Restaurants brands
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 $670K/year in gross sales. Revenue-to-investment ratio: 2.1x.
Fee burden
Total ongoing fee load of 6.0% (near the Full-Service Restaurants median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 6.5% CAGR over 3 years across 131 units — operators are staying and new ones are joining.
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 Full-Service Restaurants medians
How Rosati's Pizza Compares
Category median of published Full-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
- 131
- Opened
- 48
- Last reporting year
- Closed
- 43
- Terminated
- 10
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 32.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +6.5%
- Net unit change over 3 years
- 3-yr CAGR
- +6.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 10
- Not renewed
- 0
- Signed, not yet open
- 18
- 0.14 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
- Transfer rate
- 25.2%
- Owners selling to other franchisees
- Termination rate
- 7.6%
- Franchisor-initiated terminations
- Ceased ops
- 25.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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.
Available to sell in · Item 12
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
7 current owners across 4 states.
- FL 3
- IL 2
- AZ 1
- NC 1
Counts only, from the list the franchisor prints in Item 20; 166 entries carry no state. 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 121
- Loan volume
- $37.6M
- Median loan
- $250K
- 50th percentile
- Charge-off rate
- 17.1%
- on 121 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)
- 84.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 59
- Defaults
- 13
- Typical loan rate
- 6.9%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 1,771
- 5.0 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 66% went to startups / new businesses, 34% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Rosati's Pizza charge-off rate by loan vintage
Top lenders financing Rosati's Pizza franchisees
Showing 3 of 59 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 Rosati's Pizza from SBA 7(a) FOIA data.
- Principal loss rate
- 6.1%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 6.92%
- Avg chargeoff amount
- $179K
- Lender concentration
- 18.0%
- Job velocity
- 5.0 per $100K
- Startup risk premium
- +7.1pp
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 1,771
Top SBA lendersTop lender holds 18% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 20 | $3.7M | 0.0% |
| 2 | Byline Bank | 7 | $2.4M | 0.0% |
| 3 | JPMorgan Chase Bank, National Association | 6 | $1.2M | 0.0% |
| 4 | Bank Five Nine | 6 | $1.3M | 66.7% |
| 5 | Waukesha State Bank | 5 | $1.1M | 0.0% |
| 6 | Centier Bank | 3 | $553K | 0.0% |
| 7 | Citizens Bank | 3 | $1.2M | N/A |
| 8 | Readycap Lending, LLC | 3 | $970K | 100.0% |
| 9 | CRF Small Business Loan Company, LLC | 3 | $894K | 0.0% |
| 10 | Bank of America, National Association | 2 | $123K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| ILIllinois | 33 | 1 | 5.0% |
| WIWisconsin | 19 | 4 | 26.7% |
| TXTexas | 11 | 1 | 12.5% |
| AZArizona | 8 | 2 | 33.3% |
| FLFlorida | 6 | 0 | 0.0% |
| INIndiana | 6 | 0 | 0.0% |
| CACalifornia | 4 | 0 | 0.0% |
| GAGeorgia | 4 | 0 | 0.0% |
| NVNevada | 4 | 1 | 50.0% |
| MNMinnesota | 3 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Profitable 131-unit system ($7.86M revenue, +6.5% growth) with audited financials and Item 19. Four litigation matters including one active long-running Cook County Chancery suit by predecessor RFI alleging breach of fiduciary duty; the rest concluded/settled. No bankruptcy or going-concern. Litigation is the single notable concern, moderate for system size.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One concluded shareholder derivative suit (Case No. 20-7762, settled December 23, 2021) involving trademark infringement and breach of fiduciary duty claims against officers Anthony and David Rosati. One pending case (Case No. 2022CH04376, filed May 6, 2022) filed by predecessor company RFI against franchisor and officers.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Eccezion Strategic Business Solutions
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor's 2024 total revenue was $7,863,515, of which $1,677,528 (21%) came from franchisee required purchases/leases through Approved Suppliers.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01HIGH4 litigation matters, 1 active predecessor Chancery suit
- 02MINOR$7.86M revenue, +6.5% growth, 131 units
- 03MINORNo bankruptcy, no going-concern
- 04MINORElevated 32.8% turnover
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% 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 | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 4 |
View Item 3 litigation summary
One concluded shareholder derivative suit (Case No. 20-7762, settled December 23, 2021) involving trademark infringement and breach of fiduciary duty claims against officers Anthony and David Rosati. One pending case (Case No. 2022CH04376, filed May 6, 2022) filed by predecessor company RFI against franchisor and officers.
Items 10, 11
Training & Operations
- Classroom training
- 100 hrs
- On-the-job training
- 292 hrs
- Training location
- On-site and at franchisor location
- Ongoing training
- Required
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- Arrow POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Arrow POS
Item 20 · call current owners
Franchisee Contacts
173 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 Rosati's Pizza franchise?
The total investment to open a Rosati's Pizza franchise ranges from $147K – $501K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Rosati's Pizza franchise owners earn?
According to Item 19 of the Rosati's Pizza FDD, the average gross sales per unit is $670K. The median is $612K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Rosati's Pizza?
Rosati's Pizza is franchised by Rosati's Pizza Enterprises, Inc.. The ultimate parent named in the FDD is Rosati's Franchise Systems, Inc. (RFSI). Source: FDD Item 1, 2025 filing.
What is Item 19 in the Rosati's Pizza 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 Rosati's Pizza FDD and qualifies whose outlets they describe.
What is Rosati's Pizza's franchise failure rate?
Based on SBA 7(a) loan data, Rosati's Pizza has a charge-off rate of 17.1% across 121 loans, meaning 17.1% 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 Rosati's Pizza franchise locations are there?
As of their most recent FDD filing, Rosati's Pizza has 131 total units in the United States, including 131 franchised units and 0 company-owned units. 48 new units were opened in the latest reporting year.
Is Rosati's Pizza a good franchise to buy?
FranchiseVerdict rates Rosati's Pizza as a B-grade franchise with a verdict score of 56 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 Rosati's Pizza, you can request corrections or provide updated information.
Other Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-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.