South Philly Steaks & Fries / South Philly Cheesesteaks & Fries Franchise Cost, Revenue & Review 2026
- Investment
- $321K – $607K
- Disclosed sales
- $1.2M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (2)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
South Philly Cheesesteaks & Fries is a quick-service franchise serving Philadelphia-style cheesesteaks and fries. Franchisees run the locations, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A South Philly Steaks & Fries / South Philly Cheesesteaks & Fries franchise requires a total initial investment of $321K – $607K, including a $25K – $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.2M[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $321K – $607K
- 52nd pct Service Resta…
- Avg gross sales
- $1.2M
- Company-owned only
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 6
- 27th 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 median · 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 $321K – $607K including a $25K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.2M/year (median $1.2M) (company-owned outlets only - not franchisee performance).
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Everything Yogurt Brands, LLC
- Parent company
- Villa Pizza, Inc.
- FDD Item 1, page 7 of the 2025 FDD
- Predecessor
- Everything Yogurt, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Director
- Anthony Scotto
- Incorporated in
- DE
- HQ
- 25 Washington Street, Morristown, New Jersey 07960
- Auditor
- Independent auditor (Florham Park, New Jersey), report dated March 20, 2025
- Audited financials
- Franchisor revenue
- $653K
- vs $718K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 7
1 other brand on this site name Villa Pizza, Inc. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Anthony Scotto
- Headquarters
- NJ
- Founded
- 1975
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost is about typical for a quick-service restaurants franchise (near the category median).
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 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 (local health & safety regulation and compliance costs) | $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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $321K – $607K
- Middle of category vs category
- Liquid capital req'd
- $25K – $50K
- Middle of category vs category
- Franchise fee
- $25K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- 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 | $800 |
| Transfer fee | $10K |
| Renewal fee | $13K |
| Inventory (initial) | $5K – $10K |
| 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 23% above the quick-service restaurants norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for South Philly Steaks & Fries / South Philly Cheesesteaks & Fries until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$502K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one South Philly Steaks & Fries / South Philly Cheesesteaks & Fries unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.2M
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
- 5 outlets
- vs category median 19 · small
- Range (low → high)
- $563K→$2.1MCited, not corroborated — printed on page 43 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
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 $1.2M/year in gross sales. Revenue-to-investment ratio: 2.6x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 6.0% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 5 outlets — treat as directional only.
Operator retention
Net unit growth roughly flat at 0.0%.
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 medians
How South Philly Steaks & Fries / South Philly Cheesesteaks & Fries Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- 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
- N/A
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 17%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 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 · 3 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.
Where the owners are · Item 20 owner list
5 current owners across 3 states.
- LA 3
- NV 1
- NY 1
Counts only, from the list the franchisor prints in Item 20; 8 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- average
- Charge-off rate
- Under 10 loans (2)
- Insufficient SBA coverage: 2 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (2)
- 5-yr charge-off
- Under 10 loans (2)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
A financially distressed 6-unit system with active litigation, undisclosed profitability, no territory protection, and going concern issues presents substantial risk that franchisor may lack operational viability or franchisee support infrastructure.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Item 3 discloses: (1) Ameream LLC v. Villa Pizza Enterprises (affiliate lease dispute, dismissed in affiliate's favor Aug 2024); (2) trademark infringement suit EYB v. Jonathan Rollo/Greenleaf (EYB plaintiff, settled/dismissed); three unpaid-royalty franchise collection suits by EYB/Villa as plaintiff (Fast Casual Enterprises - default judgment $239,544.78; 1314 Food Services - settled; Asif Shahzad/Taco Jersey Green - settled); and four former-affiliate (R&S Ventures) landlord judgments for nonpayment of rent (Mayfair WI $37,930.52; DeBartolo OH $18,463.15; Centermark CA $143,609.06; W.G. Park PA $19,512.00). "Other than the above, no litigation is required to be disclosed."
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Biagio Scotto, president of Villa Pizza Specialties, Inc. (Texas corporation operating one store), filed Chapter 11 bankruptcy case number 15-31057 in United States Bankruptcy Court - District of New Jersey. Case closed February 14, 2017.
Audited financials (Item 21)
Yes · Independent auditor (Florham Park, New Jersey), report dated March 20, 2025
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 45 / 100 verdict
- 01MINOROnly 6 units system-wide with unknown growth trajectory suggests stagnant or declining franchise system
- 02HIGHMultiple litigation cases including trademark infringement, unpaid royalties, and lease disputes indicate operational and legal mismanagement
- 03MEDNet income not disclosed — unable to assess actual profitability despite $1.2M average revenue claim
- 04MINORNo territory protection leaves franchisees vulnerable to cannibalization by franchisor or other franchisees
- 05MINORJudgments against former affiliates for rental defaults suggest franchisor may lack oversight and support capability
- 06MINOR5% royalty on claimed $1.2M revenue = $60K annually, but without net income data, true ROI on $321K-$607K investment is unverifiable
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 2025 · 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 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Newark vicinage / Morris, Essex or Union County, New Jersey (litigation; no arbitration required) |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 9 |
View Item 3 litigation summary
Item 3 discloses: (1) Ameream LLC v. Villa Pizza Enterprises (affiliate lease dispute, dismissed in affiliate's favor Aug 2024); (2) trademark infringement suit EYB v. Jonathan Rollo/Greenleaf (EYB plaintiff, settled/dismissed); three unpaid-royalty franchise collection suits by EYB/Villa as plaintiff (Fast Casual Enterprises - default judgment $239,544.78; 1314 Food Services - settled; Asif Shahzad/Taco Jersey Green - settled); and four former-affiliate (R&S Ventures) landlord judgments for nonpayment of rent (Mayfair WI $37,930.52; DeBartolo OH $18,463.15; Centermark CA $143,609.06; W.G. Park PA $19,512.00). "Other than the above, no litigation is required to be disclosed."
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 133 hrs
- Training location
- Bethlehem, PA (or another designated training facility)
- Ongoing training
- Required
- Field support
- 133 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- POS system
- Oracle/Simphony
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle/Simphony
Item 20 · call current owners
Franchisee Contacts
13 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a South Philly Steaks & Fries / South Philly Cheesesteaks & Fries franchise?
The total investment to open a South Philly Steaks & Fries / South Philly Cheesesteaks & 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 / South Philly Cheesesteaks & Fries franchise owners earn?
According to Item 19 of the South Philly Steaks & Fries / South Philly Cheesesteaks & Fries FDD, the average gross sales per unit is $1.2M. The median is $1.2M. 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.
Who owns South Philly Steaks & Fries / South Philly Cheesesteaks & Fries?
South Philly Steaks & Fries / South Philly Cheesesteaks & Fries is franchised by Everything Yogurt Brands, LLC. Its parent company is Villa Pizza, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the South Philly Steaks & Fries / South Philly Cheesesteaks & Fries 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 South Philly Steaks & Fries / South Philly Cheesesteaks & Fries FDD and qualifies whose outlets they describe.
What is South Philly Steaks & Fries / South Philly Cheesesteaks & Fries's franchise failure rate?
SBA 7(a) loan charge-off data is not available for South Philly Steaks & Fries / South Philly Cheesesteaks & 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 / South Philly Cheesesteaks & Fries franchise locations are there?
As of their most recent FDD filing, South Philly Steaks & Fries / South Philly Cheesesteaks & Fries has 6 total units in the United States, including 1 franchised units and 5 company-owned units.
Is South Philly Steaks & Fries / South Philly Cheesesteaks & Fries a good franchise to buy?
FranchiseVerdict rates South Philly Steaks & Fries / South Philly Cheesesteaks & Fries as a C-grade franchise with a verdict score of 45 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.