Sbarro Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sbarro is a franchise serving New York-style Sicilian pizza by the slice, pasta, and Italian dishes. Franchisees run counters and restaurants in malls, food courts, and airports, managing food prep and quick service.
FranchiseVerdict summary · 2026
A Sbarro franchise requires a total initial investment of $100K – $1.1M, including a $20K – $35K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 36.4% charge-off rate across 17 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · 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
- 49th pct Service Resta…
- SBA charge-off
- 36.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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
- Total investment $100K – $1.1M including a $20K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 36.4% across 17 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sbarro Franchise Co., LLC
- Parent company
- Sbarro Holdings, Inc.
- Ultimate parent
- New Sbarro Intermediate Holdings, Inc.
- Predecessor
- Sbarro LLC (predecessor: Sbarro, Inc.)
- Prior franchisor entity
- CEO title
- President and Chief Executive Officer
- J. David Karam
- Incorporated in
- Delaware
- 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
- CEO
- J. David Karam
- Headquarters
- OH
- Founded
- 1956
- FDD year
- 2025
- States available
- 41
Can you afford it, and what does the money buy?
Entry cost runs 38% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 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
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $15K
- Top 40% of category vs category
- Franchise fee
- $20K – $35K
- Top 40% of category 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.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Full-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 11.7% CAGR over 3 years across 371 units — operators are staying and new ones are joining.
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 Full-Service Restaurants averages
How Sbarro Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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 (3-yr)
- -0.9%
- Net unit change over 3 years
- 3-yr CAGR
- +11.7%
- 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 17
- Loan volume
- $7.3M
- Median loan
- $440K
- 50th percentile
- Charge-off rate
- 36.4%
- 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)
- 63.6%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 4
- Typical loan rate
- 7.9%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 126
- 4.0 per loan
- Lender concentration
- 71%
- top lender's share
Borrower mix: 50% went to startups / new businesses, 50% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing Sbarro franchisees
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.
A 36.4% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 36.4% — 127% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Established 371-unit system with strong financials: net worth $6.9M, net income $1.1M on $134.4M revenue, audited, growing 11.7%. No litigation or bankruptcy. Only concern is no Item 19 earnings disclosure.
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 40 / 100 verdict
- 01MINORNo Item 19 disclosure
- 02MINORNo litigation or bankruptcy
- 03MINORStrong financials: net income $1.1M, 371 units, 11.7% growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 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 $20K. 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?
Based on SBA 7(a) loan data, Sbarro has a charge-off rate of 36.4% across 17 loans, meaning 36.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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 C-grade franchise with a verdict score of 40 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
Are you the franchisor?
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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.