South Philly Steaks & Fries / South Philly Cheesesteaks & FriesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A South Philly Steaks & Fries / South Philly Cheesesteaks & 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.
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 58/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Everything Yogurt Brands, LLC
- Parent company
- Villa Pizza, Inc.
- CEO title
- Chief Executive Officer and Director
- Anthony Scotto
- Incorporated in
- DE
- HQ
- 25 Washington Street, Morristown, New Jersey 07960
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $653K
- vs $718K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate quick-service restaurants specializing in Philadelphia-style cheesesteaks and fries. Day-to-day operations include food preparation, customer service, inventory management, and maintaining brand standards across a small footprint concept designed for strip malls or kiosks.
- CEO
- Anthony Scotto
- Headquarters
- NJ
- Founded
- 1975
- 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 (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.
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 | $50 |
| 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-owned and Franchised
- 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 / South Philly Cheesesteaks & Fries Compares
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
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 17%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- 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
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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
- average
- 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)
- N/A
- 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Item 3 discloses three litigation matters: (1) Ameream LLC v. Villa Pizza Enterprises - lease dispute dismissed in favor of defendant on August 26, 2024; (2) Everything Yogurt Brands LLC v. Jonathan Rollo et al. - trademark infringement case filed August 10, 2023, Motion for Preliminary Injunction denied January 3, 2024, settled with geographic operating restrictions; (3) Villa Pizza/Everything Yogurt Brands v. Fast Casual Enterprises - unpaid royalties case with judgment of $239,544.78 obtained December 10, 2017, settlement agreement reached September 2018; Villa Pizza/Everything Yogurt Brands v. 1314 Food Services - unpaid royalties case filed June 3, 2021 for Tanger Outlets location.
Largest disclosed settlement: $239,545
Bankruptcy (Item 4)
Disclosed in last 7 years
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 · Citrin Cooperman & Company, LLP
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 58 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates financial instability or viability questions at franchisor level
- 02MINOROnly 6 units system-wide with unknown growth trajectory suggests stagnant or declining franchise system
- 03HIGHMultiple litigation cases including trademark infringement, unpaid royalties, and lease disputes indicate operational and legal mismanagement
- 04MEDNet income not disclosed — unable to assess actual profitability despite $1.2M average revenue claim
- 05MINORNo territory protection leaves franchisees vulnerable to cannibalization by franchisor or other franchisees
- 06MINORJudgments against former affiliates for rental defaults suggest franchisor may lack oversight and support capability
- 07MINOR5% 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
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 |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 9 |
View Item 3 litigation summary
Item 3 discloses three litigation matters: (1) Ameream LLC v. Villa Pizza Enterprises - lease dispute dismissed in favor of defendant on August 26, 2024; (2) Everything Yogurt Brands LLC v. Jonathan Rollo et al. - trademark infringement case filed August 10, 2023, Motion for Preliminary Injunction denied January 3, 2024, settled with geographic operating restrictions; (3) Villa Pizza/Everything Yogurt Brands v. Fast Casual Enterprises - unpaid royalties case with judgment of $239,544.78 obtained December 10, 2017, settlement agreement reached September 2018; Villa Pizza/Everything Yogurt Brands v. 1314 Food Services - unpaid royalties case filed June 3, 2021 for Tanger Outlets location.
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
- 8 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
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
South Philly Steaks & Fries / South Philly Cheesesteaks & Fries · FDD (2025) PDF
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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 B-grade franchise with a risk score of 58 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.