SBARRO
Sbarro Franchise Co., LLC franchises quick-service Italian-style restaurants featuring pizza, pasta, salads, sandwiches, desserts, and beverages, primarily in high-traffic locations such as shopping mall food courts, in-line spaces, convenience stores, truck stops, casinos, hospitals, and college campuses. The business model includes offering single-unit franchises for new Traditional or Non-Traditional locations, Conversion Restaurants from existing company-owned units, and optional multi-unit Development Agreements for experienced operators. It targets franchisees seeking to serve on-the-go customers in captive audience, pedestrian-heavy environments with a focus on fresh Italian fare.
Franchise Costs
5-7% royalty + up to 2% marketing fund + $150-500/mo POS system fees + approx. $100/mo insurance.
Financial Performance
Item 19 Financial Performance
Data Based On: Operating results of 143 company locations that were open and operating during the entire calendar year of 2024, as presented in Table 1 of Item 19.
* Weighted average gross revenue calculated from Table 1 data: (35 units * $1,415,214 + 36 units * $816,227 + 36 units * $628,778 + 36 units * $461,304) / 143 total units = $826,291.01. Best guess profit range for a franchisee was estimated from company unit data in Table 1 (COGS, Total Payroll, Other Expenses) by adding estimated ranges for missing expenses as disclosed in Item 19: occupancy (8-15% of sales), royalties (5-6% of sales), and other potential missing fees/costs (2-5% of sales). For best_guess_profit_high: (1 - (56.3% known expenses + 8% occupancy + 5% royalties + 2% other fees)) * $826,291.01 = $237,145.52. For best_guess_profit_low: (1 - (80.4% known expenses + 15% occupancy + 6% royalties + 5% other fees)) * $826,291.01 = -$52,882.62.
Extracted Item 19 Section
How SBARRO Compares
Key Insights
- Lower investment than 77% of Fast Food franchises
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
SBARRO Current | $212K – $931K | $30K | 5.0% | 220 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M – $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K – $728K | $35K | 6.0% | 2,647 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+25 more states
SBA Loan History
Historical SBA 7(a) loan data for SBARRO franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
220 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
220 Contacts Available
Unlock all SBARRO franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a SBARRO franchise ranges from $211,900 to $931,000. This includes a franchise fee of $30,000. Ongoing royalty fees are 5.0% of gross sales.
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