FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Sbarro.
Based on 2025 FDD · 13 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Sbarro franchise shows an estimated initial investment of $100K – $1.0M. Reported owner economics show $50K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $30K franchise fee · 6% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Sbarro requires a total initial investment of $100K to $1.0M (midpoint approximately $553K), with an initial franchise fee of $30K. The ongoing fee burden is 6% (5% royalty plus 1% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for Sbarro locations is $712K. The implied franchisee EBITDA is approximately $50K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 9.0% with a payback period of approximately 11.1 years.
Sbarro operates approximately 222 franchised units. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2013-2025). 7 loans across 6 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
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