Business View Magazine
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to have the opportunity to tell the Sbarro turnaround
story. We’re honest and candid with people to let them
know that we’re in the very early innings of the turn-
around. But we’ve got tangible evidence. We’ve got
stores and menu and packaging changes that we can
point to as a part of that transition. We’ve got a much
stronger balance sheet that we can share with them
that shows a company that is financially is very strong.”
Franchisee candidates are required to have a mini-
mum net worth of $1 million – excluding their primary
residence – and $350,000 in available liquid assets.
The franchise fee is
$25,000 for a 10-year
agreement, with a 5 per-
cent royalty and a 2 per-
cent marketing fee. Typi-
cal start-up costs include
between $80,000 to
$150,000 for equipment
and fixtures, $5,000 to
$7,000 for opening inven-
tory, $8,000 to $10,000
for training expenses and
$1,000 to $5,000 for the
grand-opening package.
Construction costs and
leasehold improvements
vary by site.
“We’re not necessar-
ily looking for that large,
experienced operator,”
Karam said. “We’re look-
ing for a hands-on opera-
tor and somebody who
has a certain entrepre-
neurial flair and under-
stands that this is an opportunity for them to get in-
volved with a lower entry point, and an opportunity to
be a little bit more creative from a franchising stand-
point in terms of marketing and finding opportunities
to deliver the product. There’s a good opportunity to
make solid profitability and return on that investment.”
Going forward, making sure the company is franchise-
friendly is a priority.
Keeping the concept relevant in the marketplace and
appealing to customers is job one toward that aim,
