How to Finance a Rosati’s Pizza Franchise: Pub vs Carryout Costs
By Chris Cornella
A Rosati’s Pizza franchise loan can look very different depending on which format you choose. A carryout and delivery kitchen and a full sports pub share the same Chicago-style menu, but the franchisor’s published investment ranges for the two are far apart, and that gap shapes how much you borrow, which loan programs fit and what a lender will want to see.
US Professional Funding is not affiliated with, sponsored by or endorsed by Rosati’s Pizza; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Rosati’s Pizza Franchise Loan at a Glance
- Initial franchise fee: $35,000 for each format, according to the franchisor’s franchising website.
- Estimated initial investment: $275,000 to $1,249,000 for a Sports Pub; $147,200 to $500,500 for a Carry Out and Delivery or Fast Casual restaurant.
- Franchisor requirements: minimum liquid capital of $80,000 and minimum net worth of $250,000.
- Formats: Sports Pub, Carry Out and Delivery, and Fast Casual.
- Training: four weeks at an operating Rosati’s location, then two weeks at your own restaurant.
- System size: the company reports more than 300 locations.
- Franchisor financing: the franchisor says it does not offer financing.
- SBA Franchise Directory: listed as Rosati’s Pizza (code S1450) with no additional notes.
What Is Rosati’s Pizza?
Rosati’s traces its roots to 1964, when the Rosati brothers opened the first restaurant in Mt. Prospect, Illinois. The company describes the business as one of the oldest surviving family pizza restaurants in the United States and says it is still run by members of the original Rosati family. The company reports more than 300 locations.
The menu centers on Chicago pizza styles, including tavern thin crust, double dough and Chicago deep dish, along with pasta, sandwiches, salads and wings. Customers order for pickup or delivery, through the brand’s app and rewards program, or for catered events.
Three formats. The franchisor offers a Sports Pub, a Carry Out and Delivery restaurant and a Fast Casual restaurant. Its franchising site notes that an owner can start with a carryout and delivery location and later expand into a sports pub.
How lenders view the brand. A long operating history and a large system give lenders a familiar reference point for pizza unit economics. The format matters more than the brand name, though: a carryout unit is a compact kitchen with delivery and catering exposure, while a sports pub adds a dining room, a bar program and a much larger build-out. Each is underwritten on its own projections.
Rosati’s Pizza Franchise Costs
Initial franchise fee. The franchising website lists a $35,000 initial franchise fee for all three formats. Item 5 of the current FDD confirms when it is due and whether any part is refundable.
Real estate and build-out. Most units are in leased space, and build-out is the biggest variable. A carryout kitchen needs ovens, ventilation, prep and refrigeration in a small footprint. A sports pub needs a dining room, bar, restrooms sized for guests, televisions and audio, and often liquor licensing. Landlord improvement allowances and second-generation restaurant space can lower the cost significantly.
Equipment. Pizza ovens, dough mixers and sheeters, make-lines, walk-in coolers, fryers for wings, ventilation hoods and point-of-sale and online ordering systems are core equipment for every format. Sports pubs add bar equipment, draft systems and audiovisual packages.
Opening costs and working capital. Opening inventory, training travel, grand opening marketing, deposits, insurance and funds to cover payroll and rent during the ramp-up period are part of the initial investment.
Total investment. The franchising website, which refers buyers to the FDD, lists these estimated ranges:
- Sports Pub: $275,000 to $1,249,000
- Carry Out and Delivery: $147,200 to $500,500
- Fast Casual: $147,200 to $500,500
Item 7 of the FDD breaks each range into line items such as the franchise fee, leasehold improvements, equipment, signage, opening inventory, training expenses, deposits and additional funds for the first months. Request the current FDD and use its Item 7 table as the base of your Rosati’s Pizza franchise loan request, sized to your actual site rather than the low end.
Ongoing Fees and How They Affect Your Loan
Royalty. Item 6 of the FDD sets the royalty, usually a percentage of sales. We could not confirm the current rate, so read it in the latest FDD before building projections.
Advertising. The franchising site describes cooperative advertising funds, grand opening strategies, local store marketing plans and digital advertising support. Item 6 lists any required fund contribution and local marketing spend.
Other fees. Technology, online ordering and app fees, transfer fees and renewal fees also appear in Item 6.
How lenders factor these in. Royalties and marketing contributions come off the top of sales, along with food, labor, rent and third-party delivery commissions. Lenders subtract every percentage-of-sales cost before measuring cash flow available for debt service, so a format with high sales but heavy occupancy and staffing costs needs careful modeling.
Franchisor Requirements for New Owners
The franchisor’s website lists minimum liquid capital of $80,000 and minimum net worth of $250,000 for all three formats. It describes a six-stage path to ownership:
- Complete an interest form.
- Complete a qualification and profile packet.
- Review the FDD.
- Attend Discovery Day at the company’s Illinois headquarters.
- Finalize the franchise agreement after approval.
- Complete four weeks of training at an operating Rosati’s location and two weeks at your own restaurant.
The franchisor also says existing owners act as gatekeepers to protect the brand and that it does not use area developers.
Liquidity versus loan size. The $80,000 liquid capital minimum is the franchisor’s threshold, not a lender’s. For a sports pub at the upper end of the range, a lender’s required equity injection and post-closing reserves will usually be higher. Plan your cash against the loan you need, not only the franchisor’s minimum.
Ways to Own a Rosati’s Pizza
Opening a new restaurant. New units involve site selection, lease negotiation, build-out and a ramp-up period. Lenders underwrite on projections, your equity and your restaurant or management experience.
Buying an existing restaurant. A resale gives a lender actual sales, food cost and labor history. Transfers require franchisor approval, and the buyer typically completes training. Our article on buying a franchise resale covers the transfer process, and our franchise restaurant acquisition financing page explains how we structure these purchases.
Converting or upgrading formats. An owner who starts with carryout and later moves into a sports pub is effectively financing a second, larger project. Lenders will look at the first unit’s results and the added cost of the dining room and bar.
Financing Options for a Rosati’s Pizza Franchise
SBA 7(a) loans. With the brand on the SBA Franchise Directory, an SBA 7(a) loan is a common starting point for build-out, equipment, the franchise fee, working capital or a resale purchase.
SBA 504 loans. If you buy a freestanding building or pad site for a sports pub, the SBA 504 program can finance owner-occupied real estate and long-lived equipment.
Conventional term loans. Experienced operators with strong collateral may use a conventional business loan. Terms, amortization and collateral requirements vary by lender.
Equipment financing. Deck or conveyor ovens, mixers, make-lines, walk-ins, fryers, hoods, bar and draft systems and point-of-sale hardware can be financed separately. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. Pizza sales often swing with sports schedules, school calendars, weather and holidays, and catering orders can require inventory ahead of payment. A line of credit helps smooth those swings. Learn more about restaurant working capital.
Seller financing on resales. On the purchase of an existing restaurant, a seller may carry part of the price. Any seller note must be acceptable to the senior lender and is typically subordinate to it, and SBA program rules may limit how it is structured.
SBA Loans for Rosati’s Pizza Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally require a brand to be listed before making an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it clears the franchise relationship so the lender can focus on the deal.
Rosati’s Pizza appears on the directory under code S1450 with no additional notes, so no special brand-specific SBA documentation requirements are flagged. Directory status can change, so confirm it when you apply. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA application tips. Bring the FDD, a signed or draft franchise agreement, a lease or letter of intent, contractor bids, an equipment list, a personal financial statement, tax returns and a business plan with monthly projections. For a sports pub, include your liquor license plan and timeline.
How Lenders Evaluate a Rosati’s Pizza Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus personal guarantees from owners.
Net worth and liquidity. Lenders compare your liquid funds with the equity injection and reserves they require, which may exceed the franchisor’s $80,000 and $250,000 minimums for larger projects.
Industry and management experience. Restaurant, bar or multi-site management experience strengthens an application, especially for the sports pub format with its larger staff and bar operations.
Business plan and projections. Projections should reflect your format and market: delivery radius and third-party commissions, catering volume, dining room and bar sales for a pub, food and labor cost, royalty, marketing and rent. Include a ramp-up period.
The FDD and franchise agreement. Lenders review the term, renewal, transfer conditions and any territory provisions. The franchisor says it does not sell territories, so read Item 12 closely to understand what protection, if any, your location receives. Item 17 covers term and renewal.
Site and lease. The lease should run at least as long as the loan or include renewal options. Lenders look at rent relative to projected sales, parking, visibility and delivery access.
Historical financials for existing restaurants. On a resale, expect to provide several years of profit and loss statements, sales reports and the seller’s tax returns.
Kitchen, Bar and Build-Out: Format by Format
Carry Out and Delivery. The smallest footprint focuses capital on the kitchen: ovens, mixers, make-lines, refrigeration and a hood system, plus a front counter and online ordering. Second-generation pizza or restaurant space with an existing hood can sharply reduce build-out.
Fast Casual. Shares the carryout investment range but adds customer seating and a more developed front of house, so expect more spending on finishes, furniture and restrooms.
Sports Pub. The largest project adds a full dining room, bar, draft and beverage systems, televisions and audio, and often a liquor license. Lenders review contractor bids carefully, and many borrowers combine an SBA 7(a) or 504 loan with separate equipment financing for bar and audiovisual packages. Our article on restaurant build-out financing explains how construction draws and contingencies work.
Multi-Unit Growth and Development
Owners often add a second unit once the first is stable. The 2022 FDD described a multi-unit option that required a minimum of three restaurants and a $15,000 development fee for each additional restaurant; check the current FDD for today’s terms.
- Finance each new unit separately or consolidate once you have operating history.
- Use the first unit’s results to support the next loan request.
- Keep reserves for each build-out rather than stretching one loan across several sites.
- Prepare consolidated financial statements as the group grows.
Our guide to multi-unit franchise financing explains how lenders treat second and third units.
Real-World Scenarios
A first-time owner opening a carryout unit. A former restaurant manager opens a Carry Out and Delivery Rosati’s in second-generation space. An SBA 7(a) loan covers the franchise fee, equipment and working capital, and the borrower’s restaurant experience supports the projections.
An experienced operator building a sports pub. A bar and restaurant owner develops a Sports Pub on a pad site. The real estate is financed through SBA 504, bar and audiovisual equipment through separate equipment financing, and a line of credit supports the opening months.
A buyer acquiring an existing restaurant. A buyer purchases an established Rosati’s from a retiring owner after franchisor approval. The lender underwrites the restaurant’s actual sales, and the seller carries a small subordinated note.
An owner upgrading formats. After building a track record with a carryout unit, an owner opens a sports pub in a nearby market, using the first unit’s results to support the new loan.
Common Mistakes to Avoid
- Budgeting a sports pub off the carryout investment range
- Treating the franchisor’s liquid capital minimum as the lender’s equity requirement
- Ignoring third-party delivery commissions and royalties in projections
- Assuming territorial protection without reading Item 12
- Underestimating liquor licensing timelines for a pub
- Leaving too little working capital for slow seasons and ramp-up
For more industry pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Rosati’s Pizza Franchise
Step 1: Choose your format. Decide between Sports Pub, Carry Out and Delivery and Fast Casual based on your experience, capital and market.
Step 2: Review the FDD. Study Items 5, 6, 7, 12, 17, 19 and 20 with a franchise attorney and accountant.
Step 3: Estimate your loan. Our SBA loan calculator provides early payment estimates for planning only; they are not an offer or approval.
Step 4: Secure a site. Get a lease or letter of intent and contractor bids that match the format.
Step 5: Build your business plan. Model sales, food and labor cost, delivery fees, royalties, marketing and rent with a realistic ramp-up.
Step 6: Apply for financing. Submit your package while you complete Discovery Day and franchise approval so the timelines line up.
Step 7: Close, train and open. Complete training, fund build-out and equipment, and keep working capital in reserve.
Rosati’s Pizza Franchise Loan FAQs
How much does a Rosati’s Pizza franchise cost?
The franchisor lists an estimated initial investment of $275,000 to $1,249,000 for a Sports Pub and $147,200 to $500,500 for a Carry Out and Delivery or Fast Casual restaurant.
What is the Rosati’s franchise fee?
The initial franchise fee is $35,000 for each of the three formats, according to the franchising website.
How much liquid capital do I need?
The franchisor lists minimum liquid capital of $80,000 and minimum net worth of $250,000. Lenders may require more depending on the size of the project.
What royalty does Rosati’s charge?
The royalty and any advertising contributions are listed in Item 6 of the current FDD. Review them before building projections.
Can I get an SBA loan for a Rosati’s Pizza?
Yes. Rosati’s Pizza is listed on the SBA Franchise Directory (S1450) with no additional notes. Every loan is still subject to lender approval.
Does Rosati’s offer financing?
The franchisor says it does not offer financing, and its site refers candidates to outside funding sources. Item 10 of the FDD discloses any financing arrangements.
Can I finance pizza ovens and bar equipment separately?
Yes. Ovens, mixers, refrigeration, hoods, bar systems and point-of-sale equipment can be financed or leased separately or included in an SBA 7(a) loan.
Does Rosati’s sell protected territories?
The franchisor’s site says it does not sell territories. Read Item 12 of the FDD to understand what rights, if any, come with your location.
How long is the training?
The franchisor describes four weeks of training at an operating Rosati’s location followed by two weeks at your own restaurant.
Can I own more than one Rosati’s?
Yes. The 2022 FDD described a multi-unit development option; check the current FDD for today’s minimums and fees.
Can a first-time owner get a Rosati’s Pizza franchise loan?
Often, yes, particularly for the carryout format. Lenders look for restaurant or management experience, personal equity and reserves.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations. For a resale, rely on the restaurant’s actual financials.
Final Thoughts
The right Rosati’s Pizza franchise loan starts with the right format. A carryout unit and a sports pub can share a brand and a menu but call for very different capital, collateral and experience. Choose your format, base your budget on the current FDD and plan reserves beyond the franchisor’s minimums.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
