Sarpino's Franchise Cost & 2026 FDD Data
79/100
Strongest tier
79 this brand51 Quick-Service Restaurants medianlikely 75–83: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#188 of 3,068 graded brands
Why an A: Helped by financial health, legal record and transparency. See all six factors
- Total investment
- $376K – $553K
- Avg gross sales
- $912K
- “All Units (100%)”, 42 outlets; not profit
- SBA charge-off
- 9 resolved of 11 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Sarpino's franchise requires a total initial investment of $376K – $553K, including a $40K franchise fee. Once open, the ongoing royalty is 6.0%. Per the 2026 FDD, average gross sales were $912K (Item 19 group “All Units (100%)”, 42 outlets; gross sales, not profit). Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: 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
Quick verdict · vs Quick-Service Restaurants median
Top edge: green = better than the Quick-Service Restaurants median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $912K/year (outlet median $908K; Item 19 group “All Units (100%)”, 42 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 2 (2 opened, 0 closed).
AT STAKEOne unit at the Item 7 midpoint: $60K a year in payments on assumed SBA 7(a)-style terms.You put in about $93K of your own cash and personally guarantee a $371K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (2)
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no lawsuit naming the franchisor in Item 3, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 42 units. Not on file here, so ask: SBA charge-off rate against the category median and supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is near the Quick-Service Restaurants median ($487K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Sarpino's USA, Inc. (Item 1: 8101 Richardson Road, Suite 101, Commerce Township, Michigan 48390) and your lender what they require, and keep living costs for the first year outside the deal.
FDD Item 7 (startup costs) · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (first 3 months) | $15K | $30K |
| Equipment, build-out, other | $321K | $483K |
| 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 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fundBrand-wide marketing pool. Marketing Contribution 2% to 5% of Gross Sales (franchisor may increase up to 5%) | 2.0% |
| Technology feesTechnology fee currently $0, anticipated minimum $400/month, capped at 3% of Gross Sales per month | See the list |
| Transfer fee | $5,000 |
| Renewal fee | $10,000 |
| Total fee loadabove the Quick-Service Restaurants median of 7.0% (heavy) | 8.0% of sales |
What do units actually make?
Average gross sales are near the Quick-Service Restaurants median ($950K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Sarpino's unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $912K (FDD p.44), and the royalty and ad fund take about $73K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $60K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $464K Item 7 midpoint is a $371K loan, paid over 10 years at 10.5%: $60K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Sarpino's' past SBA 7(a) loans averaged 5.9% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $93K Assumption (the part the loan does not cover of the $464K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $371K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Sarpino's unit leave you each year after the loan payment?
Item 19: $912,486 average for 42 outlets (All Units (100%)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
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.
Item 7 midpoint of $376K to $553K
Item 7's $15K to $30K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $371K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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: 2026 FDD · filed by Sarpino's USA, Inc.
Financial performance
- Range (low → high)
- $446K→$1.6MSource: 2026 FDD, page 44
- Cohort dispersion (min → max)
- Top and bottom 25%
- $597K→$1.2M
- Bottom group → top group: the top and bottom 25% as the filing reports them
Percentile ranks within Quick-Service Restaurants
Each rank is among the Quick-Service Restaurants brands that report that figure (the count is under each bar).
vs Quick-Service Restaurants medians
How Sarpino's 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.
Who are you contracting with?
Sarpino's USA, Inc.
Item 1 (the franchisor) · 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
- latest fiscal year in the 2026 FDD; $1.9M the year before
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
Is the system healthy?
+2 franchised outlets over the two years to 2025 (43 to 45, +4.7% in total, +2.3% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 1 for every 23 open outlets · Item 20 Table 5
- Projected new
- 8
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units rose from 43 in 2023 to 45 in 2025
Axis does not start at zero.
Source and method
Item 20 (outlet counts) outlets · 6 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 6 statesNo current outlet
21 current outlets in 6 states: the 21 on the owner list, of 45 franchised at year end (Item 20).
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 11
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $2.9M
- Average loan
- $261K
- loan volume divided by loans
- Charge-off rate
- 9 resolved of 11 loans: too few to judge
- Limited SBA coverage: 11 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 9 resolved of 11 loans: too few to judge
- Recent-loan charge-off
- 9 resolved of 11 loans: too few to judge
- Lenders
- 6
- Average interest rate
- 5.9%
- Jobs reported
- 275
- Lender concentration
- 36%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Sarpino's from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 75%
- Average interest rate
- 5.9%
- Lender concentration
- 36%
- Jobs reported
- 275
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| BMO Bank National Association | ||
| 4 | $805K | Not on file |
| b1BANK | ||
| 2 | $350K | Not on file |
| Byline Bank | ||
| 2 | $590K | Not on file |
| Highland Bank | ||
| 1 | $200K | Not on file |
| U.S. Bank, National Association | ||
| 1 | $488K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| KS Kansas | 4 | 0 | Too few3 resolved |
| TX Texas | 3 | 1 | Too few3 resolved |
| IL Illinois | 2 | 0 | Too few1 resolved |
| IA Iowa | 1 | 0 | Too few1 resolved |
| MN Minnesota | 1 | 0 | Too few1 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 79/100 (category median 51); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; franchisor net income positive
- Unit economics NeutralAvg gross sales $912K on a $464K investment midpoint, 2.0x (gross sales, not profit)
- Unit growth Neutral+2 franchised outlets over the two years to 2025 (43 to 45, +4.7% in total, +2.3% a year compounded); turnover 0.0%
- Scale Neutral45 franchised units; franchising since 2005
- Legal HelpsNo litigation naming the franchisor in Item 3
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+1 point)Rounding: the score is kept as a whole number, which moved it by 1 point.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- 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?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Territory radius | 2.5 mi |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 3 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Michigan |
Items 10 (financing), 11 (training and support)
Training and 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 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
21 current outlets listed
Each record has a phone number and state. No franchisee names or cities. 21 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 21 of the 45 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.
Frequently asked questions
How much does it cost to open a Sarpino's franchise?
Per the 2026 FDD, the total investment to open a Sarpino's franchise ranges from $376K to $553K, with an initial franchise fee of $40K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Sarpino's franchise owners earn?
According to Item 19 of the Sarpino's FDD, average gross sales were $912K (Item 19 group “All Units (100%)”, 42 outlets; gross sales, not profit). The median is $908K. What an owner keeps depends on location, operating costs and management.
Who owns Sarpino's?
Sarpino's is franchised by Sarpino's USA, Inc. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Sarpino's 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 Sarpino's FDD and qualifies whose outlets they describe.
What is Sarpino's' franchise failure rate?
There is no published franchise failure rate, and Sarpino's has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Sarpino's franchise locations are there?
Per the 2026 FDD, Sarpino's has 45 franchised units and 0 company-owned (45 in all). In the latest year, the number of franchised outlets grew by 2 (2 opened, 0 closed).
Is Sarpino's a good franchise to buy?
FranchiseVerdict gives Sarpino's an A Verdict grade (Strongest tier) with a verdict score of 79 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health (audited financials), legal record and transparency. The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Quick-Service Restaurants franchises
Similar investment first, then by grade
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.