Risk Score
Pending analysis
Investment Range
$147,200 - $1,319,000
Franchise Fee
$26,250
Total US Locations
131
Business Summary
Rosati's Pizza Enterprises, Inc. offers training courses to individuals interested in opening their own pizzeria restaurant. Franchisees operate a Rosati's Pizza restaurant, specializing in pizza and casual Italian food. The business model includes two main layouts: a Carryout and Delivery model and a Sports Pub model, both providing a variety of Italian dishes like pizza, calzones, wings, pastas, and sandwiches.
Corporate History
Rosati's Pizza Enterprises, Inc. was initially organized as an Illinois corporation in February 2022, then domesticated as a Florida corporation in March 2023, and converted to a Texas entity in January 2025. The Rosati's Pizza brand itself dates back to 1964, but Rosati's Pizza Enterprises, Inc. is not the brand's original franchisor. Previous franchisors include Rosati's Family Restaurants, Inc. (1979-1983) and Rosati's Franchise Systems, Inc. (RFSI, 1988-1998). In 1998, RFSI licensed the trademark to Rosati family members, some of whom formed Rosati's Franchising, Inc. (RFI), which has offered franchises since 2006. In February 2022, RFSI assigned 143 existing franchise agreements and 4 multi-unit developer agreements from RFI to Rosati's Pizza Enterprises, Inc., which then began offering and selling new Rosati's Pizza franchises. Rosati's Pizza Enterprises, Inc. has offered franchises since March 2022 and does not currently own or operate any Rosati's Pizza restaurants itself, though affiliate entities do.
Financial Overview
Investment Range
$147,200 - $1,319,000
Franchise Fee (Low)
$26,250
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$55,000
Equipment Costs (High)
$350,000
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Rosati's Pizza Enterprises, Inc.'s financial statements for 2023 and 2024 indicate significant net losses and negative stockholders' equity in 2024. For the year ended December 31, 2024, Rosati's Pizza Enterprises, Inc. reported a net loss of $845,315 and negative stockholders' equity of $429,466. In 2023, the company also reported a net loss of $853,780. The auditor's report for 2024, while an unqualified opinion, highlights a litigation uncertainty related to a lawsuit filed by a predecessor franchisor (RFI) concerning the assignment of franchise agreements. The outcome of this ongoing lawsuit and a related insurance dispute could affect the company's financial position, though the auditor's opinion itself was not modified due to this matter. Rosati's Pizza Enterprises, Inc. has substantial liabilities, with total liabilities of $3,773,860 as of December 31, 2024. There are no specific concerns about the company's ability to continue as a going concern noted by the auditor.
Financing Details
Rosati's Pizza Enterprises, Inc. does not offer any direct or in-house financing options to its franchisees. However, Rosati's Pizza Enterprises, Inc. may provide assistance to franchisees in obtaining outside financing for their franchise business.
Performance Metrics
Total US Locations
131
Franchised Units
131
Corporate Units
0
Avg Square Footage
2,200
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Rosati's Pizza Enterprises, Inc. has been involved in four litigation cases. One case, concluded in 2021, was a shareholder derivative suit alleging trademark infringement and breach of fiduciary duty against Rosati's Pizza Enterprises' officers related to the distribution of frozen pizza; this case was settled confidentially. Two cases are currently pending: one filed in May 2022 by Rosati's Franchising, Inc. (the predecessor franchisor) against Rosati's Pizza Enterprises and its officers. This lawsuit involves claims such as breach of fiduciary duty and deceptive trade practices, stemming from the transfer of franchise agreements. A bench trial for this case was held in March-April 2025, and the parties are currently submitting post-trial briefs. The second pending case, filed in September 2024, is an insurance coverage dispute where American Family Mutual Insurance Company is seeking a declaratory judgment that it owes no duty to defend Rosati's Pizza Enterprises in the RFI lawsuit and wants reimbursement for legal fees paid. Rosati's Pizza Enterprises has counter-sued for breach of contract and bad faith. The fourth case was a mediation suit filed in August 2024 against Rosati's Pizza Enterprises and a previous landlord, which arose from actions related to a default notice, and was dismissed in October 2024.
Bankruptcy History
Rosati's Pizza Enterprises, Inc. has no bankruptcy history to disclose in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Rosati's Pizza Enterprises, Inc. franchisees must provide written notice of their intent to renew at least 270 days before the initial term ends. They must have fully complied with the existing franchise agreement, cured any defaults, and fulfilled all financial obligations to the franchisor and its affiliates. Franchisees are required to maintain possession of an approved location, make necessary capital expenditures to keep the business uniform with the System, and be in good standing with all applicable licenses and certifications. They must also undergo drug testing and background screening, provide proof of up-to-date certifications, and sign the then-current franchise agreement, which may have different terms. Finally, franchisees must sign a general release of all claims against the franchisor.
Training & Support Program
Franchisor Assistance
Rosati's Pizza Enterprises, Inc. provides comprehensive assistance to its franchisees, starting with two pre-training courses: Business Establishment and Site Selection & Real Estate training. Before opening, Rosati's Pizza Enterprises, Inc. helps designate the territory, offers site selection guidelines and counseling, and coordinates with a commercial broker to assist in finding and negotiating a lease for an appropriate location. The franchisor reviews and approves the lease agreement and provides standard plans for the business build-out, including suggested equipment lists. Initial training programs are provided for the franchisee and their managers at a Rosati's Pizza restaurant, headquarters, online, or other designated locations, covering all operational aspects. After opening, Rosati's Pizza Enterprises, Inc. offers ongoing support through quarterly advice and guidance via telephone, email, webinars, and newsletters. They conduct periodic visits to the franchised business for observation and consultation, and may prepare written reports with suggested improvements. The franchisor communicates changes and improvements to the System and provides advertising and promotional materials. They also approve local advertising and maintain the official websites (www.MyRosatis.com and www.RosatisFranchising.com) and social media sites, promoting individual franchised businesses online. Rosati's Pizza Enterprises, Inc. provides modifications to the operations manual and offers administrative, bookkeeping, and accounting control procedures. All franchisees are treated equally in terms of services and support. Additional assistance such as remedial training, special assistance, and temporary management (in cases of owner death or incapacity) is available for a fee, and franchisees are responsible for travel and living expenses for training.
Initial Training Hours
300
Training Location
Chicago, Illinois area, Temecula, California, Phoenix, Arizona or Estero, Florida
Ongoing Support
After opening, Rosati's Pizza Enterprises, Inc. provides ongoing support through periodic, no less than quarterly, general guidance via telephone, email, webinars, and newsletters, based on the experience of the franchisor and other franchisees. They also conduct announced or unannounced periodic visits to the franchised business for observation, consultation, assistance, and guidance, providing written reports outlining suggested changes or deficiencies. Rosati's Pizza Enterprises, Inc. communicates changes and additions to the System, provides advertising and promotional materials, and maintains its websites and social media sites, creating an interior page for each franchised business to direct leads. Franchisees receive modifications to the Operations Manual, security and camera system procedures, and administrative bookkeeping and accounting control procedures. Refresher training programs are occasionally required, limited to one session per year, not exceeding five days, with franchisees responsible for their travel and living expenses. Additional training or special assistance, such as direct intervention with customers or vendors, is available for a daily fee. After 12-24 months of operation, franchisees are required to complete an online training program called Profit Mastery University (PMU) for a fee, which is a prerequisite for participating in facilitated performance groups or purchasing additional businesses. In cases of owner death or incapacity, Rosati's Pizza Enterprises, Inc. may assume temporary management of the franchised business for a fee, plus reimbursement of expenses.
Franchise Requirements
Ideal Candidate Profile
Rosati's Pizza Enterprises, Inc. seeks qualified individuals or business entities to become franchisees. An ideal candidate, or their designated manager, must dedicate full-time personal attention to the franchised business, demonstrating an active, hands-on approach to operations. This manager must also be proficient in speaking, reading, and writing English. Franchisees (or owners with a 5% or greater interest in a business entity) are required to personally guarantee all obligations under the franchise agreement. Managers and supervisory associates are expected to sign confidentiality and non-solicitation agreements and adhere to the franchisor's culture, dress code, and may be required to undergo drug tests and background checks. The franchisee's investment is not considered a passive one, requiring day-to-day supervision by either the franchisee or an approved manager.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
Rosati's Pizza Enterprises, Inc. defines its protected territories based on the type of location. For non-urban areas, the territory extends within a 4-mile distance, measured by road from the front door of the franchisee's restaurant to another location. In urban areas, the protected territory is a geographic area within up to 2 miles from the front door of the restaurant, also measured by road. The exact size of the protected area is determined by Rosati's Pizza Enterprises, Inc. based on factors such as population density, traffic flow, and geographical barriers, and is not a simple straight-line radius.
Staffing Notes
Rosati's Pizza Enterprises, Inc. requires that the franchised business always operates under the direct, full-time supervision of a designated manager, who may be the franchisee. This manager must be proficient in English (speak, read, write) and devote their full personal attention to the business's day-to-day operations. Any additional managers hired by the franchisee must successfully complete the franchisor's training program before starting their roles. All employees must be legal residents of the United States. Managers and supervisory associates are required to sign confidentiality and non-solicitation agreements, conform to the dress code outlined in the Operations Manual, and may be subject to drug tests and background checks. The franchisee is responsible for training all other employees and management personnel.