Extreme Pita Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Extreme Pita is a fast-casual franchise serving fresh-made pita sandwiches, wraps, and bowls. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Extreme Pita franchise requires a total initial investment of $186K – $513K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 48.4% charge-off rate across 36 loans[1]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $186K – $513K
- 20th pct Service Resta…
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 1
- 3rd pct Service Resta…
- SBA charge-off
- 48.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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
- COSTTotal investment $186K – $513K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict F (Weakest tier), verdict score 24/100 (higher is better). SBA loan charge-off rate of 48.4% across 36 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- LEGAL27 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- MTY Franchising USA, Inc.
- Parent company
- MTY Franchising Inc. (MTY Canada)
- Ultimate parent
- MTY Food Group, Inc.
- Predecessor
- The Extreme Pita Franchising USA, Inc.
- Prior franchisor entity
- CEO title
- Chairman of the Board and Chief Executive Officer
- Eric Lefebvre
- Incorporated in
- TN
- HQ
- 9311 E. Via de Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers (PwC), Montreal, Canada
- Audited financials
- Franchisor revenue
- $604.2M
- vs $597.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2001
- FDD year
- 2026
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 47% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $20K | $35K |
| Equipment, build-out, other | $136K | $448K |
| Total initial investment | $186K | $513K |
Source: Extreme Pita 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $186K – $513K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $35K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $150 |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Inventory (initial) | $4K – $6K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Extreme Pita makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Extreme Pita 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 annual revenue, 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.
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: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 9.0% (near the Quick-Service Restaurants average).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System shrank 100.0% over 3 years. Ask existing franchisees about local market conditions.
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 averages
How Extreme Pita Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- 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
- 0
- Corporate units in the system
- Net growth (3-yr)
- Effectively gone
- Likely small-sample artifact
- 3-yr CAGR
- Effectively gone
- Likely small-sample artifact
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 36
- Loan volume
- $6.4M
- Median loan
- $179K
- average
- Charge-off rate
- 48.4%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 15
Vintage analysis
Extreme Pita charge-off rate by loan vintage
Top lenders financing Extreme Pita franchisees
Showing 3 of 8 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Extreme Pita's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 14 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
A 48.4% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 48.4% — 202% 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
Litigation (Item 3)
Multiple concluded cases involving franchisor and affiliates/predecessors including Extreme Pita predecessor, Kahala Franchising, Cold Stone Creamery, SweetFrog, Baja Fresh/Fresh Enterprises, Famous Dave's, VI BrandCo, Wetzel's Pretzels, Papa Murphy's, Blimpie, Maui Wowi, and Triune/BF Acquisition. One active suit by Kahala v. Hunter Hammond Enterprises filed during fiscal year. Settlements ranged from $18,000 to $585,000.
Largest disclosed settlement: $585,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers (PwC), Montreal, Canada
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 attaches Exhibit A, the audited consolidated financial statements of MTY Franchising USA, Inc. (the franchisor, dba Extreme Pita) for the fiscal years ended November 30, 2025 and 2024 (PricewaterhouseCoopers), in thousands of US dollars. FY2025 revenue $604,239,000; net income $30,677,000; total assets $1,447,070,000; total liabilities $1,176,013,000; stockholder's equity $271,057,000. MTY Franchising USA is a subsidiary of MTY Food Group Inc.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 24 / 100 verdict
- 01HIGHGoing Concern status is FALSE — franchisor may be financially unstable or unable to support franchisees
- 02HIGHExtensive litigation history including state franchise law violations (FIPA, WFIPA, NYFSA) and breach of contract claims
- 03MEDMisrepresentation of financial performance alleged — Item 19 (Average Unit Volume) not disclosed, making ROI impossible to validate
- 04MEDHigh franchise fee ($30,000) relative to apparent system viability and lack of disclosed revenue/profitability data
- 05MINORLease and area developer agreement disputes indicate franchisor-franchisee relationship breakdown
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · 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 | 1 |
| Territory type | none |
| 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 | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | Yes |
| Arbitration location | Phoenix, Arizona |
| Jury trial waiver | Yes |
| Governing law | AZ |
| Litigation count | 27 |
View Item 3 litigation summary
Multiple concluded cases involving franchisor and affiliates/predecessors including Extreme Pita predecessor, Kahala Franchising, Cold Stone Creamery, SweetFrog, Baja Fresh/Fresh Enterprises, Famous Dave's, VI BrandCo, Wetzel's Pretzels, Papa Murphy's, Blimpie, Maui Wowi, and Triune/BF Acquisition. One active suit by Kahala v. Hunter Hammond Enterprises filed during fiscal year. Settlements ranged from $18,000 to $585,000.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 40 hrs
- Training location
- Online, KTEC (Kahala Training and Education Center) in Scottsdale, AZ; in-store at franchisee's location
- Ongoing training
- Required
- Field support
- 5 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisor assists; franchisee makes final decision
- Franchisor financing
- Not offered
- Item 10
- POS system
- Designated POS system from approved suppliers
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Designated POS system from approved suppliers
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Extreme Pita · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Extreme Pita franchise?
The total investment to open a Extreme Pita franchise ranges from $186K – $513K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Extreme Pita franchise owners earn?
Extreme Pita makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the Extreme Pita 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 Extreme Pita FDD and qualifies whose outlets they describe.
What is Extreme Pita's franchise failure rate?
Based on SBA 7(a) loan data, Extreme Pita has a charge-off rate of 48.4% across 36 loans, meaning 48.4% 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 Extreme Pita franchise locations are there?
As of their most recent FDD filing, Extreme Pita has 1 total units in the United States, including 1 franchised units and 0 company-owned units.
Is Extreme Pita a good franchise to buy?
FranchiseVerdict rates Extreme Pita as a F-grade franchise with a verdict score of 24 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.