Fazoli's franchise
2025 filing · September 17, 2025Fewer locationsShares sales figures
Fazoli's at a glance
A quick-service Italian restaurant serving pasta, breadsticks, subs and pizza. At the end of 2024 there were 195 Fazoli's locations in the US, 139 franchised and 56 company-owned.
The business
- Franchisor
- FAZOLI’S FRANCHISING SYSTEMS, LLC
- The company that sells the franchises
- Franchisor based in
- Lexington, Kentucky
What you pay
- Cost to open
- $1.64M–$2.64M
- Freestanding restaurant
- Franchise fee
- $50,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross receipts, paid weekly
- Brand fund
- 4%
- 4% of gross receipts
- Agreement length
- 15 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 195
- Franchised and company-owned
- Franchised
- 139
- Company-owned
- 56
- Change in 3 years
- −17
- Franchised locations, 2022–2024
- States
- 26
- Most in Kentucky, Indiana and Missouri
From FAZOLI’S FRANCHISING SYSTEMS, LLC’s 2025 filing; revenue and net loss from its audited financial statements, page 86; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Fazoli's among all franchises with the same figure.
| Figure | Fazoli's | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $2,139,500 | Costs more than 93% of franchises |
| Franchise feePaid once, when you sign | $50,000 | Higher than 70% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 195 | More than 86% of franchises |
| Sales per locationYearly, as the brand reports it | $1,312,096 | Higher than 74% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 0.6× | Lower than 95% of brands that share sales figures |
How much a Fazoli's franchise costs
Opening freestanding restaurant costs an estimated $1,638,000 to $2,641,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are cost of the building ($865,000 to $1,260,000) and site preparation ($270,000 to $485,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Franchise Fee | $50,000 | ||
| Site Preparation | $270,000 | $485,000 | |
| Architectural Services | $25,000 | $75,000 | |
| Cost of the Building | $865,000 | $1,260,000 | |
| Furniture, Fixtures, and Equipment | $270,000 | $470,000 | |
| Information System and related technology | $47,000 | $59,000 | |
| Training Expenses | $10,000 | $35,000 | |
| Inventory & Uniforms | $15,000 | $30,000 | |
| Security Deposits, Utilities and Insurance | $5,000 | $27,000 | |
| Trade Area Analysis, Sales Projection and Sales Impact Report (see Item) | $15,000 | ||
| Pre-opening and Opening Advertising | $15,000 | ||
| Additional Funds-3 Months | $60,000 | $120,000 | |
| Total | $1,638,000 | $2,641,000 | |
Source: FAZOLI’S FRANCHISING SYSTEMS, LLC, 2025 filing, page 29
Fazoli's franchise fee
The franchise fee is $50,000. You pay it when you sign the franchise agreement.
Source: FAZOLI’S FRANCHISING SYSTEMS, LLC, 2025 filing, page 21
Royalty and ongoing fees
| Royalty | 5% of gross receipts, paid weekly. |
|---|---|
| Brand or marketing fund | 4% of gross receipts. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: FAZOLI’S FRANCHISING SYSTEMS, LLC, 2025 filing, page 23
Sales and earnings
Shares figures Fazoli's publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average net sales
- $1,312,096
- Median net sales
- $1,247,845
Yearly figures for fiscal 2024, covering franchised traditional restaurants open the full fiscal year. The average is about 0.6 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: FAZOLI’S FRANCHISING SYSTEMS, LLC, 2025 filing, pages 70–73
SBA loans to Fazoli's franchisees
Lenders approved 47 SBA-backed loans for Fazoli's franchisees from 1992 to 2026, $35.9M in all: 36 7(a) loans and 11 504 loans. Of the 34 that have ended, 31 were paid in full and 3 were charged off (8.8%). The other 13 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2024 / 2022–2024. Typical means the median: half of brands are above it, half below.
| Measure | Fazoli's | Typical fast food brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −7.3% / −11% | 0% / +5.6% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 9.3% / 21% | 3.7% / 17% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical fast food brand is the median of the 124 brands in fast food franchises with three years of counts.
How Fazoli's compares
Of the 309 fast food franchises on this site, Fazoli's is the 299th cheapest to open and the 59th largest by number of locations.
| Figure | Fazoli's | Typical fast food brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $1.64M | $353K | $222K |
| Cost to open, high end | $2.64M | $786K | $477K |
| Franchise fee | $50K | $35K | $40K |
| Royalty | 5% | 6% | 6% |
| Brand fund | 4% | 2% | 2% |
| Sales per location | $1.31M | $1.14M | $794K |
| US locations | 195 | 23 | 21 |
| Shares earnings figures | Yes | 189 of 309 | 2,147 of 3,352 |
Typical is the median across the 309 brands in fast food franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2022 | 151 (−5) | 57 | +8 | −13 |
| 2023 | 150 (−1) | 57 | +5 | −6 |
| 2024 | 139 (−11) | 56 | +3 | −14 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: fast food franchise costs and franchise failure rates.
Source: FAZOLI’S FRANCHISING SYSTEMS, LLC, 2025 filing, page 74
Where Fazoli's locations are
At the end of 2024, Fazoli's had locations in 26 states. The most are in Kentucky, Indiana and Missouri.
- Kentucky33
- Indiana29
- Missouri16
- Ohio16
- Tennessee14
- Texas11
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Kentucky | 17 | 16 | 33 |
| Indiana | 6 | 23 | 29 |
| Missouri | 15 | 1 | 16 |
| Ohio | 8 | 8 | 16 |
| Tennessee | 14 | 0 | 14 |
| Texas | 11 | 0 | 11 |
| Wisconsin | 9 | 0 | 9 |
| Michigan | 3 | 5 | 8 |
| Illinois | 4 | 3 | 7 |
| Florida | 6 | 0 | 6 |
All 26 states
| Colorado | 5 |
|---|---|
| Georgia | 5 |
| Iowa | 5 |
| Nebraska | 5 |
| Arkansas | 4 |
| Kansas | 4 |
| Arizona | 3 |
| Alabama | 2 |
| Oklahoma | 2 |
| South Carolina | 2 |
| South Dakota | 2 |
| Virginia | 2 |
| West Virginia | 2 |
| California | 1 |
| Mississippi | 1 |
| North Carolina | 1 |
Source: FAZOLI’S FRANCHISING SYSTEMS, LLC, 2025 filing, page 75
Who owns Fazoli's?
Fazoli's franchises are sold by FAZOLI’S FRANCHISING SYSTEMS, LLC. It is a subsidiary of Fazoli’s Group, Inc.
Fazoli's is one of the 9 FAT Brands franchises here. FAT Brands is a public company whose shares were listed on Nasdaq. It and its affiliate Twin Hospitality filed for Chapter 11 bankruptcy protection in January 2026 to restructure their debt.
From FAZOLI’S FRANCHISING SYSTEMS, LLC’s 2025 filing, page 10; FAT Brands.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 19–20. |
|---|---|
| Bankruptcy | The franchisor, its parent FAT Brands and their affiliates filed for Chapter 11 in January 2026. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: FAZOLI’S FRANCHISING SYSTEMS, LLC, 2025 filing, litigation on pages 19–20, bankruptcy on page 20
Fazoli's filings
The figures on this page come from FAZOLI’S FRANCHISING SYSTEMS, LLC’s 2025 filing, issued September 17, 2025, on record with the Minnesota Department of Commerce.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | September 17, 2025 | Minnesota | Costs, fees and locations, 2022–2024 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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