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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
5-7% royalty + up to 2% marketing fund + $150-500/mo POS system fees + approx. $100/mo insurance.
Franchise Stats
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 to Other Fast Food Franchises
Key Insights
- Lower investment than 77% of Fast Food franchises
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
SBARRO Current | $212K - $931K | $30K | 5.0% | 220 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| 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 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 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
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a SBARRO franchise?
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.
How much revenue does a SBARRO franchise make?
According to the 2025 FDD, the average gross revenue for a SBARRO franchise is $826,291.01. The median revenue is $712,479.
How much profit can you make with a SBARRO franchise?
Based on the financial performance data in the FDD, estimated profit for a SBARRO franchise ranges from $-52,882.62 to $237,145.52 per year. Actual results vary based on location, management, and market conditions.
How many SBARRO franchise locations are there?
As of the 2025 FDD, SBARRO has 220 franchise locations. The company has been franchising since 1977.
Can you get an SBA loan for a SBARRO franchise?
Yes, SBA loans are available for SBARRO franchises. Historical data shows 9 SBA 7(a) loans have been approved for SBARRO franchisees, with an average loan amount of $385,322. The historical default rate is 0.0%.
Is SBARRO a good franchise to buy?
SBARRO shows several positive indicators: established brand with 220+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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