Sauce Pizza / Wine Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Sauce Pizza & Wine is a fast-casual franchise serving wood-fired pizza, pasta, and salads with wine and beer. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Sauce Pizza / Wine franchise requires a total initial investment of $1.3M – $5.5M, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.9M[2]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.3M – $5.5M
- 96th pct Service Resta…
- Avg gross sales
- $1.9M
- Company-owned only30th pct Service Resta…
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 13
- 43rd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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
- COSTTotal investment $1.3M – $5.5M including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.9M/year (median $2.2M) (company-owned outlets only - not franchisee performance).
- RISKVerdict D (Below average), verdict score 34/100 (higher is better).
- LEGAL18 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BQ Concepts, LLC
- Parent company
- BBQ Holdings, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- Predecessor
- Sauce, LLC / Sauce Holdings, LLC (Sauce Prior Owners)
- Prior franchisor entity
- CEO title
- Chief Executive Officer (MTY)
- Eric Lefebvre
- CEO experience
- 2018 yrs
- Years in role or industry
- Incorporated in
- Arizona
- HQ
- 12701 Whitewater Drive, Suite 100, Minnetonka, Minnesota 55343-4164
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $604.2M
- vs $597.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Eric Lefebvre
- Headquarters
- MN
- Founded
- 2022
- FDD year
- 2026
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 418% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Leasehold Improvementsnot refundable | $500K | $2.0M | |
| Land, Building and Constructionnot refundable | $2.4M | $4.0M | |
| Travel and Living Expenses for You and Your Management Staff During Trainingnot refundable | $25K | $40K | |
| Reimbursement of Expenses for Opening Teamnot refundable | $55K | $100K | |
| Furniture, Fixtures, Decor, and Equipmentnot refundable | $500K | $800K | |
| Architectural and Engineering Feesnot refundable | $50K | $170K | |
| Exterior Signsnot refundable | $45K | $100K | |
| Liquor License Costsnot refundable | $25K | $75K | |
| Site Review Report Feenot refundable | $1K | $5K | |
| Restaurant Lease Payments - 3 Monthsnot refundable | $11K | $25K | |
| Employee Salaries - 3 Monthsnot refundable | $60K | $110K | |
| Miscellaneousnot refundable | $5K | $10K | |
| Grand Opening Celebrationnot refundable | $15K | $25K | |
| Additional Funds - 3 Monthsnot refundable | $5K | $10K | |
| Total initial investment | $3.7M | $7.5M |
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
- $1.3M – $5.5M
- Bottom third — review vs category
- Liquid capital req'd
- $5K – $10K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category 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 | $325 |
| Training fee | $750 |
| Transfer fee | $5K |
| Renewal fee | $50 |
| 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% above the quick-service restaurants norm.
Company-owned outlets only - not franchisee performance
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
$307K
16.0% margin
Unlevered ROIC
9%
EBITDA / total invested capital
Payback
11.2 yrs
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Sauce Pizza / Wine unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
9%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Sauce Pizza / Wine units return on equity?
Equity IRR · 5-yr
31.6%
3.95× MOIC
Year-1 DSCR
2.55×
EBITDA ÷ debt service
Equity required
$7.1M
on $17.2M purchase
Total debt
$10.2M
SBA $5.0M + senior + seller note
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
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $1.9M
- Per unit, per year
- Median gross sales
- $2.2M
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
- 13 outlets
- vs category median 20
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
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 $1.9M/year in gross sales. Median ($2.2M) exceeds the average — distribution is bottom-heavy but most units perform well. Revenue-to-investment ratio: 0.6x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 6.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Quick-Service Restaurants averages
How Sauce Pizza / Wine Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 13
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 1.0%
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
New franchisor (2024) with parent-level financials (MTY-affiliated); parent shows strong net worth $271M and net income $30.7M. The 15 disclosed litigation matters are all historical actions involving affiliated MTY/Kahala brands, not this brand (which has zero franchisees). Only real note is limited operating history and affiliate-litigation disclosure.
Litigation (Item 3)
Two concluded litigation matters disclosed: (1) Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7) - Filed June 2015, alleged FIPA violations and misrepresentation regarding franchise financial performance. Settled March 2016 for $20,000. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - Filed February 2015, alleged breach of contract and unjust enrichment. Cross-complaint filed. Bench trial concluded June 2016 with judgment for Kahala. Attorney's fees awarded to Kahala in amount of $205,000. Parties settled in June 2017 with Kahala repurchasing KOHO's Area Developer territory for $75,000.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 34 / 100 verdict
- 01HIGH15 litigation items but all affiliate/historical, none against this brand
- 02MINORParent-level financials strong ($271M net worth, $30.7M net income)
- 03MINORNew franchisor (2024), 0 franchised units
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 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 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Arbitration location | franchisee_state |
| Jury trial waiver | Yes |
| Governing law | State where Franchised Business is located |
| Litigation count | 18 |
View Item 3 litigation summary
Two concluded litigation matters disclosed: (1) Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7) - Filed June 2015, alleged FIPA violations and misrepresentation regarding franchise financial performance. Settled March 2016 for $20,000. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - Filed February 2015, alleged breach of contract and unjust enrichment. Cross-complaint filed. Bench trial concluded June 2016 with judgment for Kahala. Attorney's fees awarded to Kahala in amount of $205,000. Parties settled in June 2017 with Kahala repurchasing KOHO's Area Developer territory for $75,000.
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 280 hrs
- Training location
- On-site and corporate
- Time to open
- 9 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Sauce Pizza / Wine · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sauce Pizza / Wine franchise?
The total investment to open a Sauce Pizza / Wine franchise ranges from $1.3M – $5.5M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sauce Pizza / Wine franchise owners earn?
According to Item 19 of the Sauce Pizza / Wine FDD, the average gross sales per unit is $1.9M. The median is $2.2M. Important context: Company-owned outlets only - not franchisee performance. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Sauce Pizza / Wine 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 Sauce Pizza / Wine FDD and qualifies whose outlets they describe.
What is Sauce Pizza / Wine's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sauce Pizza / Wine (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 Sauce Pizza / Wine franchise locations are there?
As of their most recent FDD filing, Sauce Pizza / Wine has 13 total units in the United States, including 0 franchised units and 13 company-owned units.
Is Sauce Pizza / Wine a good franchise to buy?
FranchiseVerdict rates Sauce Pizza / Wine as a D-grade franchise with a verdict score of 34 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.