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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.
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Franchise Costs
5% to 7% royalty + 1% local advertising + up to 2% marketing fund + POS/Computer System Maintenance Fees
Financial Performance
Item 19 Financial Performance
Data Based On: 141 company locations that were open and operating during the entire calendar year of 2025.
* Weighted average revenue calculated as: (35 units × $1357809 + 35 units × $819165 + 35 units × $635665 + 36 units × $462877) / 141 total units. Weighted average gross profit calculated by first determining gross profit for each quartile (Average Sales * (1 - COGS %)) and then taking a weighted average across all units. No specific 'net income', 'net profit', or 'EBITDA' figures are provided. The expense data in Table 1 (COGS, Total Payroll, Other Expenses) explicitly excludes occupancy costs, initial franchise fees, royalties, and other fees that franchisees would pay but company-owned locations do not. Therefore, 'best_guess_profit_low' and 'best_guess_profit_high' cannot be reasonably estimated for a franchisee based on the provided partial expense data, and are set to null.
Extracted Item 19 Section
Avg. Revenue: $816,354
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Unlock financial performance dataHow SBARRO Compares
Key Insights
- Lower investment than 76% of Fast Food franchises
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
SBARRO Current | $212K – $981K | $30K | 5.0% | 237 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 8.0% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 134 franchises | $596K – $1.6M | $35K | 6.4% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 134 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
+25 more states
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Unlock location growth dataSBA 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.
9 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
231 franchisee contacts on file from official FDD filings.
231 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Primarily breach of contract and trademark infringement disputes.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a SBARRO franchise ranges from $211,900 to $981,000. This includes a franchise fee of $30,000. Ongoing royalty fees are 5.0% of gross sales.
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