Sarpino's Pizzeria Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$395,500 - $582,000
Franchise Fee
$24,000
Min Cash Required
$30,000
Total US Locations
43
Business Summary
Sarpino's Pizzeria is a restaurant that offers authentic Italian dishes, including gourmet pizza, pastas, salads, wings, appetizers, breadsticks, calzone wraps, and sandwiches. Sarpino's Pizzeria emphasizes fresh ingredients, homemade sauces, proprietary spice mixes, high-quality meats, and fresh-baked bread, aiming to provide an authentic Italian dining experience with delivery and curbside pickup options.
Corporate History
Sarpino's USA, Inc. was incorporated in Illinois on October 25, 2002, as KDD Sarpino's of Illinois, Inc. Initially, it served as an Area Franchisor for Sarpino's in Illinois. On March 21, 2005, Sarpino's USA, Inc. purchased the assets of Sarpino's International Inc., becoming the sole franchisor for SARPINO'S PIZZERIA in the United States. Its name changed to Sarpino's USA, Inc. on May 20, 2005. The company sold subfranchises from June 2002 to June 2005 and has offered SARPINO'S PIZZERIA Restaurant franchises throughout the US since June 2005, and Multi-Unit Development Agreements since March 2007. As of March 6, 2024, there is a pending stock purchase agreement for the sale of all outstanding shares in Sarpino's USA, Inc. to an unrelated third party.
Financial Overview
Investment Range
$395,500 - $582,000
Franchise Fee (Low)
$24,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$30,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$289,000
Equipment Costs (High)
$424,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Sarpino's USA received an unqualified audit opinion for its financial statements for 2023 and 2022, indicating fair presentation in all material respects. While the company's net income decreased from $640,739 in 2022 to $421,025 in 2023, and cash and cash equivalents significantly declined from $1,352,569 in 2022 to $189,265 in 2023, Sarpino's USA has maintained positive working capital. A notable material event impacting the company's financial future and ownership structure is the pending sale of all its outstanding shares to an unrelated third party, as of March 6, 2024.
Financing Details
Sarpino's USA does not offer any direct or indirect financing or guarantees for loans, leases, or other obligations to its franchisees. However, Sarpino's USA does provide franchisees with a list of recommended third-party lenders, from which franchisees can choose to seek financing. Sarpino's USA states that it does not receive any material benefit from franchisees using these recommended lenders.
Performance Metrics
Total US Locations
43
Franchised Units
43
Corporate Units
0
Avg Square Footage
1,300
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Sarpino's USA has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Sarpino's USA has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Sarpino's Pizzeria franchisees must give notice between 6 and 12 months before their current term ends. They must be in full compliance with the Franchise Agreement and operating manual, have paid all outstanding amounts to Sarpino's USA, and have the right to remain in their current location. They are required to renovate the restaurant to meet current brand standards, sign a general release of claims against Sarpino's USA, comply with all training requirements, have successfully passed their most recent inspection, and have no unresolved customer complaints or unsatisfactory customer ratings. Finally, they must sign the then-current Restaurant Franchise Agreement, which may have materially different terms, and pay a renewal fee of up to 50% of the then-current initial franchise fee to cover Sarpino's USA's expenses.
Training & Support Program
Franchisor Assistance
Before opening, Sarpino's USA provides site selection guidelines and assistance, reviews and approves proposed sites, furnishes prototypical plans and specifications for restaurant design, trains the franchisee and their Designated Manager, and offers on-site opening supervision and assistance. It also issues written certification for opening once all pre-opening requirements are met. During operation, Sarpino's USA provides online access to its confidential Operating Manual (approximately 2,222 pages) and other digital resources. It also offers ongoing performance improvement consulting, advice on management techniques and new developments, and conducts inspections of restaurant operations, providing reports and evaluations. Sarpino's USA also administers a national advertising fund to which franchisees contribute, directing all advertising and promotional programs.
Initial Training Hours
315
Training Location
Corporate headquarters in Lincolnshire, IL and at the franchisee's restaurant
Ongoing Support
After opening, Sarpino's USA provides online access to its Operating Manual and additional digital resources, offering ongoing performance improvement consulting and advice on management techniques and new developments. Sarpino's USA conducts inspections of restaurant operations and evaluates products and services, providing reports and evaluations. They administer a National Advertising Fund for system-wide promotion. Franchisees may be required to attend annual conventions and additional courses, seminars, and training programs, for which Sarpino's USA may charge a fee. Sarpino's USA may also require franchisees to participate in and use programs, software, or applications designed to improve operational performance. If non-compliance is found during an inspection, Sarpino's USA may require and charge for re-training at the franchisee's restaurant.
Franchise Requirements
Ideal Candidate Profile
Sarpino's USA seeks individuals or entities to open and operate SARPINO'S PIZZERIA restaurants. For individual owners or single-unit entities, the owner must personally supervise the franchised business on-site as the designated manager. For multi-unit entities, an owner must be the designated manager for one restaurant, and different designated managers are required for additional locations, though they do not need to be owners. All owners and spouses must guarantee obligations and comply with non-competition/confidentiality agreements. Candidates should possess strong financial and operational abilities, as these are factors considered for Multi-Unit Developers.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Sarpino's Pizzeria territories are defined as a "Protected Area" surrounding the approved restaurant location. The size and configuration of this area vary for each franchise, determined by Sarpino's USA based on factors like population density, specific customer segments (residential, businesses, hotels, schools, etc.), and a drive time analysis for delivery services. The boundary might be a measured distance, such as a one-mile radius from the restaurant site, or defined by designated streets. For franchises in "limited use facilities," the protected area is restricted to that facility.
Staffing Notes
Sarpino's Pizzeria franchisees must always have a Designated Manager who devotes full-time efforts to supervising the business. If the franchisee is an individual, they must be the Designated Manager. If an entity owns one franchise, one owner must be the Designated Manager. For multiple franchises, each restaurant needs a different Designated Manager, though these additional managers don't need to be owners. In addition to the Designated Manager, each restaurant must have two Certified Managers who have completed Sarpino's USA's training. Franchisees are responsible for hiring, retaining, disciplining, and firing all employees, including setting their compensation, benefits, and schedules. Employees must maintain a neat appearance and wear prescribed uniforms or follow a dress code. Franchisees are also required to maintain in-house delivery drivers at minimum numbers specified in the Operations Manual.