Bottom line
- Total investment $396K – $582K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.0M/year (median $1.1M).
- Rated STRONG with a risk score of 50/100. SBA loan default rate of 0.0% across 40 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one SARPINO’S PIZZERIA unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 SARPINO’S PIZZERIA units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$420K
on $2.1M purchase
Total debt
$1.7M
SBA $1.0M + senior + seller note
Overview
About
Franchisees operate quick-service Italian pizza restaurants, managing food preparation, customer service, delivery logistics, and in-store dining. Day-to-day operations include inventory management, staff scheduling, quality control, and local marketing to drive the $1M+ annual revenue target.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sarpino's presents a CAUTION-level risk profile due to undisclosed net income figures, ambiguous going concern status, small system size, and high capital requirements without transparent profitability validation.
Score breakdown · what drove the 50 / 100 rating
- 01MEDNet Income not disclosed in FDD — impossible to assess actual profitability despite $1.05M average revenue claim
- 02HIGHGoing Concern status is FALSE — suggests potential financial instability or undisclosed operational issues at corporate level
- 03MINOROnly 43 units with unknown growth trajectory — small system size makes it difficult to validate unit economics and scaling viability
- 04MINORHigh initial investment range ($395.5K–$582K) combined with non-transparent profitability creates significant risk-reward imbalance
- 05HIGHNo litigation disclosed may indicate inadequate disclosure or lack of franchisee disputes, but requires verification
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SARPINO’S PIZZERIA · FDD (2024) PDF