Rosati’s Pizza Franchise Costs $147K – $1.2M (+ 2024 Profits)

Rosati’s Pizza was founded in 1964, rooted in family tradition and dedicated to serving authentic Chicago-style pizza. The franchise is headquartered in Elgin, Illinois. It began franchising in 1978, expanding its unique offering of pizzas made from original recipes and high-quality ingredients. 

Rosati’s menu includes a variety of pizzas, pasta, wings, and sandwiches, distinguishing itself through its commitment to tradition and quality in the competitive pizza industry.

Number of locations

Here’s how many franchised and company-owned Rosati’s Pizza there have been in the United States over the past few years.

Initial investment

Here’s what you can expect to spend to start a Rosati’s Pizza franchise.

Type of Expenditure	Amount (Sport Pub)
Initial Franchise Fee	$35,000
Travel and Living Expenses During Training	$1,500 to $10,000
Office Equipment and Supplies	$500 to $3,000
Insurance Premiums	$2,500 to $10,000
Professional Fees	$10,000 to $30,000
Initial Inventory	$12,000 to $30,000
Lease, Utility and Security Deposits	$2,500 to $20,000
Initial Rent	$12,000 to $36,000
Leasehold Improvements	$50,000 to $600,000
Furniture, Fixtures, Equipment and Materials	$125,000 to $350,000
Signage	$7,000 to $25,000
Business Licenses and Permits	$2,000 to $25,000
Additional Funds for First 3 Months	$15,000 to $75,000
Total	$275,000 to $1,249,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.

Initial Franchise Fee

The initial franchise fee for the first Rosati’s Pizza restaurant is $35,000. For each additional Rosati’s Pizza restaurant after the first, the initial franchise fee is $17,500.

Royalty Fee

Franchisees must pay a royalty fee of 5% of Gross Sales, payable weekly.

Advertising Fund

Up to 5% of Gross Sales may be required for the advertising fund, subject to change. Currently, the fee is $350 per month but will not exceed 5% of Gross Sales.

Transfer Fee – Franchise Agreement

One-half of the then-current initial franchise fee for a first franchise, currently $17,500, is due at the time of transfer.

Renewal Fee – Franchise Agreement

The renewal fee for franchising agreements is $5,000, due before renewal.

Audit Fees

The cost of audit, estimated at $1,500, is due upon demand if the audit reveals underreporting of sales by more than 2%.

Late Fee

A late fee of $100 applies for each notification, non-sufficient funds check, or demand for payment.

Lease Renewal Fee

The lease renewal fee covers our costs related to the new lease and evaluation of the leased premises, currently not exceeding $2,500.

Evaluation of Suppliers

A fee of $250 per day, plus reasonable expenses, applies if an evaluation of unapproved items or suppliers is requested.

Profits

Here’s how much revenue and profits you can expect to make with a Rosati’s Pizza franchise, as indicated by the franchisor.

Pros and cons

Pros

• Flexible business concept: Rosati’s Pizza allows franchisees to operate their businesses as sports hubs or carryout/delivery restaurants. 
• Initial training: the brand offers extensive training to help franchisees operate a successful business. 2-4 weeks of onsite, hands-on training equips franchisees with the knowledge they need to launch a rewarding franchise. In addition, the 30-day training program covering the pre-opening and opening phases helps restaurant owners keep pace with the latest in the American and global pizza industry.  
• Exclusive territories: under the Franchise Agreement, franchisees get exclusive rights to operate their restaurants within designated locations. They are guaranteed a competition-free environment to operate their business. 
• Financing: while the franchisor doesn’t provide direct or indirect funding, it occasionally offers partial financing to help franchisees cover the remodeling and repair costs. This only applies to established franchises. 
• Ongoing support: Rosati’s Pizza provides ongoing support through business meetings, seminars, and conventions. This is part of the operations and marketing strategies to help increase sales and profits.

Cons

• Previous experience: the franchisor only desires highly qualified individuals with prior business, marketing, and sales experience. In addition, franchisees must have the right motivation and financial qualifications to run a successful franchise business.
• No absentee ownership: the franchisor strongly recommends that restaurant owners view Rosati’s Pizza franchise as a serious, full-time commitment. It discourages absentee ownership. 
• No part-time running: In addition to the no absentee ownership requirement, Rosati’s Pizza can’t be run part-time either. Franchisees must be willing to work full time instead
• Minimum employee requirement: franchisees must employ at least 6-8 individuals to run the business. 
• Competition: like any other pizza chain, Rosati’s Pizza faces strong competition in this sector from many players: Blaze Pizza, Mountain Mike’s, Hungry Howie’s, Marco’s Pizza, Pizza Ranch to name a few, in addition to the giants Pizza Hut and Domino’s)

How to apply

Opening a Rosati’s Pizza franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Rosati’s Pizza franchise.

1. Research the Franchise

• Understand the Brand: Learn about Rosati’s Pizza’s history, menu offerings, brand values, and customer base.
• Franchisee Requirements: Look into the financial requirements, such as initial investment, franchise fee, and ongoing royalties. Also, understand any experience or skills required.
• Market Research: Analyze your local market to ensure there’s demand for a pizza franchise and that the competition isn’t too intense.

2. Submit an Inquiry

• Initial Contact: Fill out a franchise inquiry form on the Rosati’s Pizza franchise website to express your interest.
• Receive Information: Expect to receive detailed franchise information from Rosati’s Pizza, which could include their Franchise Disclosure Document (FDD), outlining all the important details about the franchise.

3. Review Franchise Disclosure Document (FDD)

• Legal and Financial Details: Carefully review the FDD. This document contains critical information about the franchise, including fees, investment costs, legal obligations, and earnings claims.
• Consult Professionals: It’s wise to consult with a franchise attorney and a financial advisor to understand the legal and financial implications fully.

4. Attend Discovery Day

• Meet the Franchisor: Rosati’s may invite you to a discovery day at their headquarters or a specific location. This is your chance to meet the corporate team, ask questions, and get a feel for the brand culture.
• Location Visit: You might also visit existing Rosati’s Pizza locations to see the operations firsthand and speak with current franchisees.

5. Secure Financing

• Estimate Total Investment: Based on the information from the FDD and your research, determine the total investment required.
• Funding Options: Explore funding options, which may include personal savings, bank loans, Small Business Administration (SBA) loans, or partnerships.

6. Choose a Location

• Site Approval: Work with Rosati’s to find and approve a suitable location for your franchise, considering factors like foot traffic, parking, and local competition.
• Lease Negotiations: Once a site is chosen, you’ll likely need to negotiate a lease. Rosati’s Pizza may assist or provide guidelines for this process.

7. Training and Development

• Comprehensive Training: Attend the franchisor’s training program to learn about operations, marketing, product preparation, and customer service.
• Store Setup: Follow the guidelines provided by Rosati’s for setting up your store, including design specifications, equipment purchases, and inventory setup.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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