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.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 11 loans (below the industry average).
- System contracting at -10.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Sbarro unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 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
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.
Score breakdown · what drove the 63 / 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
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
86 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sbarro · FDD (2025) PDF