Sbarro’s Pizza Franchise FDD, Profits & Costs (2025)
Sbarro is a renowned pizza franchise that began in 2014 and quickly gained recognition for its New York-style pizza by the slice. Founded with a focus on providing high-quality, freshly made Italian-inspired dishes, the brand has grown into a well-known name in the quick-service pizza industry.
Since it started franchising in 2016, Sbarro has expanded its presence to over 600 locations across 23 countries, serving customers in a variety of high-traffic areas. The franchise specializes in offering oversized slices of pizza made from freshly prepared dough, along with other Italian favorites such as pasta and stromboli.
By maintaining a commitment to fresh ingredients and traditional preparation methods, Sbarro differentiates itself from many competitors in the fast-food space. The brand is particularly known for its convenience, allowing customers to grab a quick and satisfying meal without sacrificing quality.
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Initial Investment
How much does it cost to start a Sbarro’s Pizza franchise? It costs on average between $207,000 – $946,000 to start a Sbarro’s Pizza franchised restaurant.
This includes expenses for construction, kitchen equipment, inventory, and initial operating costs. The total investment varies based on multiple factors, such as the type of Sbarro location, its geographic area, and whether the franchisee opts to lease or purchase the property. Sbarro’s Pizza offers 2 types of franchises:
| Sbarro’s Pizza Location Type | Initial Investment Range |
|---|---|
| Traditional Location | $206,900 – $871,100 |
| Non-Traditional Location | $310,150 – $946,000 |
We are summarizing below the main costs associated with opening a Sbarro’s Pizza franchised restaurant. For more information on costs required to start a Sbarro’s Pizza franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount (Traditional) | Amount (Non-Traditional) |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Lease | $10,000 – $50,000 | 8% of sales – $100,000 |
| Leasehold Improvements | $50,000 – $450,000 | $50,000 – $450,000 |
| Purchase of Initial Equipment Package | $50,000 – $200,000 | $50,000 – $200,000 |
| POS/Computer System | $3,000 – $20,000 | $3,000 – $20,000 |
| Permits & Licenses | $2,000 – $5,000 | $250 – $5,000 |
| Outside Signs or Menuboards | $10,000 – $25,000 | $20,000 – $50,000 |
| Insurance Package | $1,200 – $2,500 | $1,200 – $2,500 |
| Opening Inventory & Supplies | $16,000 | $16,000 |
| Training Expenses | $7,000 – $15,000 | $7,000 – $15,000 |
| Utility Installations & Deposits | $200 – $2,000 | $200 – $2,000 |
| Architectural Fees | $15,000 – $25,000 | $15,000 – $25,000 |
| Project Design & Vendor Coordination | $0 – $10,500 | $0 – $10,500 |
| Legal & Accounting | $2,500 – $5,000 | $2,500 – $5,000 |
| Additional Funds (1 to 3 months) | $10,000 – $15,000 | $10,000 – $15,000 |
| Total Investment | $206,900 – $871,000 | $310,150 – $946,000 |
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Sbarro’s Pizza Franchise Disclosure Document
Frequently Asked Questions
How many Sbarro’s Pizza locations are there?
As of the latest data, Sbarro operates approximately 800 locations worldwide, comprising both company-owned and franchised outlets.
What is the total investment required to open a Sbarro’s Pizza franchise?
The total investment required to open a Sbarro’s Pizza franchise ranges from $207,000 to $946,000.
What are the ongoing fees for a Sbarro’s Pizza franchise?
Sbarro franchisees are subject to ongoing fees that support the brand’s operations and marketing efforts. The royalty fee ranges from 5% to 7% of total gross revenues, determined on a case-by-case basis.
Additionally, franchisees contribute up to 2% of total gross revenues to the Marketing Fund Fee and are required to allocate 1% of total gross revenues to local advertising initiatives.
What are the financial requirements to become a Sbarro’s Pizza franchisee?
To become a Sbarro’s Pizza franchisee, candidates are typically required to have a minimum net worth of $350,000 and at least $125,000 in liquid capital. These financial prerequisites ensure that potential franchisees possess the necessary resources to establish and operate a Sbarro location effectively.
Who owns Sbarro’s Pizza?
Sbarro is currently owned by a private equity firm, MidOcean Partners, which acquired the company in early 2007. The franchise is led by CEO J. David Karam, who has been instrumental in guiding the company’s strategic direction and expansion efforts.
Disclaimer
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