South Philly Steaks & FriesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A SOUTH PHILLY STEAKS & FRIES franchise requires a total initial investment of $321K – $607K, including a $25K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.2M[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $321K – $607K
- 20th pct Service Resta…
- Avg gross sales
- $1.2M
- 13th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 6
- 15th 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
Franchising since 1986. Systems this mature have refined operations and brand recognition.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $321K – $607K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $1.2M).
- Verdict B (Above Average) with a risk score of 62/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Everything Yogurt Brands, LLC
- Predecessor
- and Affiliates
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 25 Washington Street, Morristown, New Jersey 07960
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $718K
- vs $653K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate quick-service sandwich and fried food restaurants featuring Philly-style steaks, fries, and related menu items. Day-to-day operations include food prep, staffing, inventory management, POS systems, and customer service in what is typically a counter-service or limited-seating environment.
- CEO
- Anthony Scotto
- Headquarters
- NJ
- Founded
- 1976
- FDD year
- 2025
- States available
- 6
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $25K | $35K | |
| Equipment and Furnishings | $100K | $130K | |
| Signs | $9K | $15K | |
| Real Estate | — | — | |
| Building Construction | $125K | $300K | |
| Insurance | $3K | $6K | |
| Opening Inventory | $5K | $10K | |
| Utility Deposits | $2K | $2K | |
| Business Licenses | $1K | $4K | |
| Travel, Lodging and Meals for Initial Training | $3K | $5K | |
| Grand Opening Advertising | — | — | |
| Professional Fees | $10K | $25K | |
| Additional Funds (three months) | $25K | $50K | |
| Computer Equipment | $10K | $20K | |
| Advertising and Marketing | $3K | $5K | |
| Total initial investment | $321K | $607K |
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.
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
$144K
12.0% margin
Unlevered ROIC
29%
EBITDA / total invested capital
Payback
3.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $321K – $607K
- Better than avg vs category
- Liquid capital req'd
- $25K – $50K
- Better than avg vs category
- Franchise fee
- $25K – $35K
- Better than avg 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 |
| Transfer fee | $10K |
| Renewal fee | $13K |
| 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.
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.2M
- Item 19 type
- Affiliate and Franchisee Data
- Sample size
- 6 units
- vs category median 13 · small
- Range (low → high)
- $563K→$2.1M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How South Philly Steaks & Fries Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 17%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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 loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $355K
- Median loan
- $178K
- 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
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into South Philly Steaks & Fries's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
A micro-franchise system with severe profitability transparency issues, escalating legal disputes over unpaid royalties, and zero territorial protection—suggesting weak unit economics and systemic franchisee distress.
Litigation (Item 3)
12 case reference(s): 2 pending, 4 settled.
Largest disclosed settlement: $24
Bankruptcy (Item 4)
Disclosed in last 7 years
bankruptcy, case number 15-31057 in the United States Bankruptcy Court – District of New Jersey. That case was closed on February 14, 2017. No other bankruptcy information is required to be disclosed in this disclosure document.
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
Score breakdown · what drove the 62 / 100 rating
- 01MINOROnly 6 units system-wide with unknown growth trajectory suggests minimal scale and network effects
- 02MINORFour royalty recovery lawsuits indicate systemic franchisee profitability/cash flow problems
- 03MINORNo net income disclosure despite $1.2M average revenue raises questions about actual unit economics
- 04HIGHMultiple litigation cases (8 total) including affiliate defaults and trademark disputes suggest operational/legal instability
- 05MINORUnprotected territory creates direct competition risk and cannibalization within the small 6-unit base
- 06MEDHigh investment range ($321K-$607K) paired with undisclosed profitability creates unfavorable risk/reward ratio
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 9 |
View Item 3 litigation summary
12 case reference(s): 2 pending, 4 settled.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 133 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Oracle/Simphony
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle/Simphony
Item 20 · call current owners
Franchisee Contacts
24 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SOUTH PHILLY STEAKS & FRIES · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SOUTH PHILLY STEAKS & FRIES franchise?
The total investment to open a SOUTH PHILLY STEAKS & FRIES franchise ranges from $321K – $607K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SOUTH PHILLY STEAKS & FRIES franchise owners earn?
According to Item 19 of the SOUTH PHILLY STEAKS & FRIES FDD, the average gross sales per unit is $1.2M. The median is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is SOUTH PHILLY STEAKS & FRIES's franchise failure rate?
SBA 7(a) loan charge-off data is not available for SOUTH PHILLY STEAKS & FRIES (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 SOUTH PHILLY STEAKS & FRIES franchise locations are there?
As of their most recent FDD filing, SOUTH PHILLY STEAKS & FRIES has 6 total units in the United States, including 1 franchised units and 5 company-owned units.
Is SOUTH PHILLY STEAKS & FRIES a good franchise to buy?
FranchiseVerdict rates SOUTH PHILLY STEAKS & FRIES as a B-grade franchise with a risk score of 62 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.