Rosati's PizzaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Rosati's Pizza franchise requires a total initial investment of $147K – $1.2M and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $850K[2]. SBA 7(a) loans show a 17.1% charge-off rate across 121 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $147K – $1.2M
- 6th pct Service Resta…
- Avg gross sales
- $850K
- 7th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 131
- 43rd pct Service Resta…
- SBA default
- 17.1%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 131 to 2 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $147K – $1.2M including a $0 franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $850K/year (median $752K).
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 17.1% across 121 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 10 units terminated last reporting year (7.6% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- ROSATI'S PIZZA ENTERPRISES, INC.
- Parent company
- null
- Ultimate parent
- Rosati's Franchise Systems, Inc. (RFSI)
- Predecessor
- in interest
- 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
- TX
- 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
Franchisees operate pizza restaurants delivering Rosati's menu (pizza, Italian sandwiches, pasta, appetizers) through dine-in, carryout, and delivery channels. Day-to-day operations include food preparation, inventory management, staffing, customer service, and local marketing. Franchisees pay 5% royalties on gross sales with a 20-year lease term and protected territory.
- CEO
- Anthony M. Rosati
- Headquarters
- TX
- Founded
- 1964
- FDD year
- 2025
- States available
- 17
FDD Item 7 · 2025 filing · 28 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 | |
| Initial Fees (Sports Pub Restaurant)not refundable | $35K | $35K | |
| Travel and Living Expenses While Training (Sports Pub) | $2K | $10K | |
| Rent / Real Estate Deposit (Sports Pub) | $12K | $36K | |
| Utility and Miscellaneous Security Deposits (Sports Pub) | $3K | $20K | |
| Leasehold Improvements (Sports Pub) | $50K | $600K | |
| Signage (Sports Pub) | $7K | $25K | |
| Total initial investment | $457K | $1.8M |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$102K
12.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $147K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $5K – $75K
- Better than avg vs category
- Franchise fee
- N/A
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · 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 – $30K |
| 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.
Financial Performance
- Avg gross sales
- $850K
- Per unit, per year
- Median gross sales
- $752K
- Item 19 type
- gross_sales
- Sample size
- 118 units
- vs category median 13 · large
- Range (low → high)
- $111K→$2.7M
- Cohort dispersion (min → max)
- Quartile band
- $409K→N/A
- Bottom 25% → top 25%
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Rosati's Pizza Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 131
- Opened
- 48
- Last reporting year
- Closed
- 33
- Terminated
- 10
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 25.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +4.0%
- Net unit change last year
- 3-yr CAGR
- +6.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 5
- Terminated (3yr)
- 2
- Transfers (3yr)
- 33
- Reacquired (3yr)
- 1
- Franchisor bought back
- 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 · 13 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).
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%
- 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
Vintage analysis
Rosati's Pizza charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Rosati's Pizza'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
- 26-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rosati's presents meaningful caution-level risk due to undisclosed profitability metrics, active litigation, sluggish unit growth, and wide investment variance that obscure true franchisee returns.
Litigation (Item 3)
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.
Largest disclosed settlement: $50,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Eccezion Strategic Business Solutions
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 55 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — cannot validate profitability claims against $849,556 average revenue
- 02HIGHMultiple ongoing and concluded litigation matters including trademark infringement, franchise assignment disputes, and landlord default cases — suggests operational and legal instability
- 03MEDSlow unit growth of only 4.0% YoY with 131 units — below typical franchise expansion rates, indicating limited brand momentum or franchisee satisfaction
- 04MINORWide investment range ($147K–$1.25M) suggests inconsistent unit economics and unclear cost structure across territories
- 05HIGHGoing Concern flag is FALSE but litigation history raises questions about franchisor financial stability and ability to support franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Specific geographic boundary |
| Protected territory | 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 |
| 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
133 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Rosati's Pizza · FDD (2025) PDF
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 – $1.2M. 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 $850K. The median is $752K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 risk score of 55 out of 100, 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.
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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.