SPITZ - HOME OF THE DONER KEBAB

Item 7 lays out a substantial entry: $579,250-$1,150,050 total investment, including a $35,000 franchise fee, driven by buildout in prime retail spots, equipment, and inventory for sandwiches, wraps, salads, and full bar service. Ongoing fees stack up with 5.5% royalty (or the greater of $125/week), up to 2% brand fund (not currently collected), plus hefty $950-$2,450 monthly social/local ads and $100-$167 POS fees—elevated marketing demands versus typical fast-casual 4-6% royalties. Item 19 shines brightly: average gross revenue hits $1,841,281 across units, median $1,744,848, signaling strong top-line performance even in a 14-unit franchise system (5 corporate), ideal for urban high-traffic plays including trucks and non-trads.

System vitality shows +25% growth (16 to 20 locations 2023-2024), just 1 termination, and robust 19 SBA loans averaging $418,653, underscoring lender confidence despite the system's youth since 2013. No major litigation flags, low corporate-to-franchise ratio hints at controlled expansion via area devs (2-4 units). For investors eyeing $1.3M+ AUV potential post-expenses (assuming 25-30% margins norm), Spitz offers scalable upside in a $1.5B+ doner kebab-trend wave, but watch those add-on fees eroding 15-20% EBITDA; high revenues mitigate risks in growing markets.