Sarpino's Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Sarpino's franchise requires a total initial investment of $376K – $553K, including a $24K – $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $912K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $376K – $553K
- 26th pct Service Resta…
- Avg gross sales
- $912K
- 8th pct Service Resta…
- Royalty
- 6.0%
- 28th pct Service Resta…
- Units
- 45
- 36th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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
- Total investment $376K – $553K including a $24K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $912K/year (median $908K).
- Verdict C (Average), verdict score 69/100 (higher is better).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sarpino's USA, Inc.
- Predecessor
- Sarpino's International Inc. (Washington corporation; assets purchased March 21, 2005); originally formed as KDD Sarpino's of Illinois, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Bassam "Sam" Askar
- Incorporated in
- Illinois
- HQ
- 8101 Richardson Road, Suite 101, Commerce Township, Michigan 48390
- Franchisor revenue
- $2.4M
- vs $1.9M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Sarpino's Pizzeria stores specializing in gourmet pizza and authentic Italian pastas plus salads, wings, appetizers, breadsticks, calzone wraps and sandwiches, for carry-out, delivery and limited dine-in.
- CEO
- Bassam "Sam" Askar
- Headquarters
- Michigan
- Founded
- 2002
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 51% below the typical full-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $24K | $24K |
| Working capital (3–6 mo) | $15K | $30K |
| Equipment, build-out, other | $337K | $499K |
| Total initial investment | $376K | $553K |
Source: Sarpino's 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $376K – $553K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $30K
- Top 40% of category vs category
- Franchise fee
- $24K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- Marketing Contribution 2% to 5% of Gross Sales (franchiso…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $10K |
| Inventory (initial) | $7K – $10K |
What do units actually make?
Average unit sales run 40% below the full-service restaurants norm.
Source: FDD 2026 · Item 19
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
$82K
9.0% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
5.9 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $912K
- Per unit, per year
- Median gross sales
- $908K
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 quartile disclosure (average, median, high, low, % meeting/exceeding average)
- Sample size
- 42 units
- vs category median 16 · large
- Range (low → high)
- $446K→$1.6M
- Cohort dispersion (min → max)
- Quartile band
- $597K→$1.2M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
Compared against 1273 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 $912K/year in gross sales. Revenue-to-investment ratio: 2.0x.
Fee burden
6.0% royalty.
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 averages
How Sarpino's Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 45
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $2.9M
- Median loan
- $240K
- 50th percentile
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
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
- 6
- Defaults
- 1
- Typical loan rate
- 5.9%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7225
- Jobs supported
- 275
- 9.6 per loan
- Lender concentration
- 36%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Top lenders financing Sarpino's franchisees
Showing 3 of 6 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.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
⚠ Grade capped at C: the auditor disclosed a going-concern note (FDD Item 21). The verdict score reflects the underlying financials before that cap.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
What are you signing up for?
Source: FDD 2026 · 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 | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 229 hrs
- Training location
- Company-owned or franchised store, plus office (New Franchisee Orientation)
- Ongoing training
- Required
- Site selection
- franchisor provides standard plans, site selection and lease review assistance; one on-site evaluation included
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sarpino's franchise?
The total investment to open a Sarpino's franchise ranges from $376K – $553K, with an initial franchise fee of $24K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sarpino's franchise owners earn?
According to Item 19 of the Sarpino's FDD, the average gross sales per unit is $912K. The median is $908K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Sarpino's's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sarpino's (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 Sarpino's franchise locations are there?
As of their most recent FDD filing, Sarpino's has 45 total units in the United States, including 45 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Sarpino's a good franchise to buy?
FranchiseVerdict rates Sarpino's as a C-grade franchise with a verdict score of 69 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
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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.