SbarroFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Sbarro franchise requires a total initial investment of $100K – $1.1M, including a $30K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $100K – $1.1M
- 3rd pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 371
- 47th pct Service Resta…
- SBA default
- 0.0%
- 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 220 to 197 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $100K – $1.1M including a $30K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 71/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Sbarro Franchise Co., LLC
- Parent company
- SBARRO Holdings, Inc.
- Predecessor
- is Sbarro LLC
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 1328 Dublin Road, Columbus, OH 43215
- Auditor
- Schneider Downs & Co., Inc.
- Audited financials
- Franchisor revenue
- $134.4M
- vs $135.2M prior year
Affiliated brands
- maintains its pr
- Sbarro America
- Sbarro
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate casual dining locations serving Sbarro's signature Sicilian pizza, pasta, salads, and beverages. Day-to-day operations include managing kitchen staff, food preparation, inventory control, customer service, and maintenance of quick-service or traditional restaurant environments across mall, street, or airport locations.
- CEO
- J. David Karam
- Headquarters
- OH
- Founded
- 1956
- FDD year
- 2025
- States available
- 41
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $30K | $30K | |
| Lease | $10K | $50K | |
| Leasehold Improvements | $50K | $450K | |
| Purchase of Initial Equipment Package | $50K | $225K | |
| POS/Computer System | $3K | $20K | |
| Permits & Licenses | $2K | $5K | |
| Outside Signs Or Menuboards | $10K | $25K | |
| Insurance Package | $1K | $3K | |
| Opening Inventory & Supplies | $16K | $16K | |
| Training Expenses | $7K | $15K | |
| Utility Installations & Deposits | $200 | $2K | |
| Architectural Fees | $20K | $35K | |
| Project Design and Vendor Coordination | $0 | $11K | |
| Legal & Accounting | $3K | $5K | |
| Additional Funds (1 to 3 months) | $10K | $15K | |
| Total initial investment | $212K | $906K |
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
- $100K – $1.1M
- Better than avg vs category
- Liquid capital req'd
- $10K – $15K
- Better than avg vs category
- Franchise fee
- $20K – $35K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $4K |
| Renewal fee | $8K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Sbarro Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 371
- Opened
- 31
- Last reporting year
- Closed
- 33
- Turnover rate
- 8.9%
- Company-owned
- 151
- Corporate units in the system
- % franchised
- 59%
- vs corporate-owned
- Net growth (yr3)
- -11.3%
- Net unit change last year
- 3-yr CAGR
- -10.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- $3.2M
- Median loan
- $440K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Sbarro's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sbarro presents HIGH RISK due to negative unit growth, missing financial disclosures, unprotected territory, and undisclosed going concern issues that obscure true franchisee profitability and system viability.
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Schneider Downs & Co., Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 71 / 100 rating
- 01MEDSignificant unit decline of -11.3% YoY indicates systemic contraction and weakening franchise system health
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents accurate ROI assessment and profitability validation
- 03MINORNo protected territory creates direct competition risk from other franchisees and company-owned locations within same market
- 04HIGHGoing concern status is FALSE, suggesting potential financial instability or restructuring concerns at corporate level
- 05MINORHigh initial investment range ($99,900-$1,066,000) paired with no performance data creates extreme financial exposure uncertainty
- 06MINORDeclining unit count suggests existing franchisees are not renewing or are closing locations profitably
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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 150 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
86 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Sbarro · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sbarro franchise?
The total investment to open a Sbarro franchise ranges from $100K – $1.1M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sbarro franchise owners earn?
Sbarro does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Sbarro's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sbarro (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 Sbarro franchise locations are there?
As of their most recent FDD filing, Sbarro has 371 total units in the United States, including 220 franchised units and 151 company-owned units. 31 new units were opened in the latest reporting year.
Is Sbarro a good franchise to buy?
FranchiseVerdict rates Sbarro as a D-grade franchise with a risk score of 71 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.