East of Chicago Pizza Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $217,500 to $482,500
• Franchise Fee: $20,000
• Royalty: 5% of adjusted gross revenues
• Marketing / Ad Fee: 3% of adjusted gross revenues
• Key additional recurring fees: training fees, pass-through vendor charges, non-compliance fees, late fees, special support fees, inspection fees, audit-related costs, and temporary management fee
• Number of locations: 63 franchised outlets at year-end 2023; company-owned outlet count is not fully established in the disclosure excerpt, though Item 19 reports 56 franchised and 1 company store in its 2023 sales table for stores open all year
• Best Fit: owner-operator or active overseer with a designated operating partner

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The estimated initial investment ranges from $217,500 to $482,500, with an initial franchise fee of $20,000. The disclosure also lists additional funds of $25,000 to $35,000, which suggests a need for working capital beyond opening costs.

The main cost drivers appear to be the full restaurant buildout and operating setup implied by the concept, along with equipment and ongoing working capital. Based on the disclosed range, this is a high-cost startup relative to many small service franchises, though still below the cost of some larger restaurant formats.

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• Royalty: 5% of adjusted gross revenues
• Marketing Fund Contribution: 3% of adjusted gross revenues
• Replacement / Additional Training: currently none, but can be $500 to $2,000 per person
• Third-party vendors: pass-through costs plus possible administrative charge
• Non-compliance fee: $500, then $250 per week until corrected
• Reimbursement: franchisor-paid amounts on your behalf, plus 10%
• Late fee: $100 plus interest at 18% per year on unpaid amounts
• Insufficient funds fee: $30
• Convention fee: as determined; currently none
• Special support fee: currently $600 per day plus expenses
• Relocation fee: $5,000
• Special inspection fee: currently $600 plus out-of-pocket costs
• Non-compliance cure costs and fee: costs plus 10% per instance
• Renewal fee: 50% of the then-current initial franchise fee
• Transfer fee: $5,000 plus certain additional costs
• Temporary management fee: 10% of adjusted gross revenues plus expenses

The base recurring load is at least 8% of adjusted gross revenues before considering other charges. That creates a meaningful ongoing fee burden, especially in a restaurant model where labor, occupancy, and food costs also matter.

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Yes, the FDD includes an Item 19 financial performance representation, but it reports sales only, not profit.

2023 systemwide sales for stores open all year

All Stores (57 stores)

• Average annual sales: $698,072
• Median annual sales: $683,874
• Range: $164,814 to $1,398,807

Highest 20% (11 stores)

• Average annual sales: $1,062,968
• Median annual sales: $1,009,826
• Range: $864,411 to $1,398,807

Lowest 20% (11 stores)

• Average annual sales: $367,182
• Median annual sales: $398,301
• Range: $164,814 to $462,031

Company (1 store)

• Average annual sales: $733,077
• Median annual sales: $733,077
• Range: $733,077 to $733,077

Franchised (56 stores)

• Average annual sales: $697,446
• Median annual sales: $683,349
• Range: $164,814 to $1,398,807

What the numbers suggest

The spread is wide. The top 20% averaged about $1.06 million in annual sales, while the bottom 20% averaged about $367,182. That gap indicates substantial unit-level variability.

The systemwide average and median are fairly close, which suggests the middle of the system is not heavily skewed. Still, the full range from $164,814 to $1,398,807 shows that outcomes can differ materially by location and execution.

The disclosure states this is a historic representation and not a projection of future performance. It covers stores open for all of 2023 and excludes two temporarily closed stores and one transferred store. The disclosure does not clearly state that these figures are audited. Most importantly, revenue is not profit; these numbers do not show food costs, labor, rent, debt service, or owner earnings.

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• B2C / B2B: B2C restaurant model
• Revenue pattern: primarily recurring consumer sales rather than one-time project revenue
• Key operational characteristics: physical restaurant operation, menu production, staffing, equipment, direct owner participation, and a designated operating partner with decision-making responsibility

This appears to be an operating business that requires day-to-day oversight rather than a lightly managed model.

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Advantages

• Item 19 provides actual 2023 sales data across 57 stores open all year, including average, median, and range.
• The concept is straightforward: a restaurant offering pizza, baked subs, salads, and related menu items.
• Franchised store average annual sales ($697,446) are close to the all-store average ($698,072), which suggests the single company store did not materially distort the overall figure.
• The system shows 63 franchised outlets at year-end 2023, up from 60 at the start of 2023.

Considerations

• Startup cost is substantial at $217,500 to $482,500, plus $25,000 to $35,000 in additional funds.
• Ongoing required fees total 8% of adjusted gross revenues before other possible charges.
• Sales variability is significant, with the lowest reported annual sales at $164,814 and the highest at $1,398,807.
• The model requires personal participation by an owner and a designated operating partner, which limits passive ownership.
• Territory is non-exclusive, so the disclosure does not establish protected market exclusivity.

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This franchise may fit someone seeking a restaurant business with disclosed historical sales data and who is prepared for active involvement in operations.

It likely does not fit a passive investor, someone looking for a low-cost entry point, or an owner who wants exclusive territorial protection clearly established in the agreement.

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• Each owner of a franchise entity must sign a guaranty and non-compete agreement, extending obligations beyond the operating entity.
• The franchisor may require use of designated third-party vendors and may collect payment with a markup or administrative charge.
• If the franchisor temporarily manages the business under certain circumstances, it can charge 10% of adjusted gross revenues plus expenses.
• Liquidated damages may apply if the franchise agreement is terminated due to default or if the franchisee exits without the right to do so.
• The disclosure excerpt does not clearly establish the full franchise term or renewal term details.

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East of Chicago Pizza presents a fairly clear tradeoff: you get historical unit sales data from a meaningful group of stores, but the model comes with high startup costs, a meaningful recurring fee load, and active operating requirements. The main decision point is whether the restaurant operating demands and variability in sales are acceptable relative to the reported revenue range.

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