Short answer: Revenue and profit are not the same. Revenue or Net Sales measures money generated by restaurant sales before many business expenses. Profit is what remains after the restaurant pays its applicable costs. A prospective franchisee should never treat an Item 19 sales figure as personal income or guaranteed profit.
What does Item 19 tell a franchise candidate?
Item 19 is the section of a Franchise Disclosure Document where a franchisor may provide a financial performance representation. The format and scope vary by franchise system. Read the definitions, reporting period, store population, exclusions, notes and assumptions before comparing one number with another.
Russo's currently publishes that the top 50% of U.S. franchised stores averaged $1,164,000 in Net Sales for fiscal year 2025, according to Item 19 of the current FDD. Individual results vary. That figure is Net Sales, not profit, cash flow or owner compensation.
- Which restaurants were included?
- What period does the figure cover?
- Is the number an average, median, high or low?
- What costs are excluded from the sales figure?
- How comparable is the proposed market and restaurant plan?
Which expenses stand between sales and profit?
Restaurant economics depend on the actual business plan. Common expense categories include food and packaging, labor, occupancy, utilities, insurance, technology, delivery costs, royalties, marketing contributions, maintenance, professional fees, debt service and local taxes. The amount and timing of each cost can vary by site and operator.
- Build a site-specific sales forecast instead of copying a system average.
- Test food and labor assumptions against the proposed menu and service model.
- Model rent, common-area charges, construction and financing for the actual site.
- Keep a working-capital reserve for the opening and ramp-up period.
How should you use Russo's published performance information?
Use the disclosure as one input in a broader review. Compare the current Item 19 language with the Item 7 investment table, the proposed lease, local wage and occupancy assumptions, and your financing plan. Ask independent legal, accounting and business advisers to review your model before you commit capital.
Review the official performance page and current FDD for the complete qualifications. Russo's does not promise that a new restaurant will reach an average, become profitable by a certain date or produce a specific owner income.
Continue your Russo's franchise research
Compare the Russo's pizza franchise opportunity, review the published pizza franchise investment, understand training and franchise support, and explore U.S. franchise markets. Qualified candidates can then submit a market-specific inquiry.
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