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Zeppe's

Zeppe's

The total investment to open a Zeppe's franchise ranges from $100,000 to $176,000. The initial franchise fee is $25,000.

What is the Zeppe's franchise?

Zeppes operates in the Full Service Restaurants category from Streetsboro, OH. The brand’s founding year and the start of franchising are not stated. Its network includes 26 franchised units and zero company owned units, reflecting a pure franchise structure in which franchisees handle local operations. The United States full service restaurant market exceeds $350 billion annually and is projected to grow at a compound annual growth rate of 3.5% to 4.5% over the next five years. Zeppes has an established presence through its 26 active locations, although its current scale does not make it a dominant participant in the category. The model gives buyers an operating framework based on franchised locations rather than corporate owned stores. Demand for dining, quality food and community gathering places supports the broader category and provides the setting in which Zeppes operates.

The full service restaurant industry generated approximately $360 billion in the United States in the most recent fiscal year and is projected to approach $450 billion by 2029, representing a compound annual growth rate of 4.2%. Consumers continue to value dining experiences that include atmosphere and service, along with convenience and quality ingredients. Local and community focused restaurants can also benefit from customer interest in regional establishments. Rising disposable incomes across demographic groups, urbanization and more frequent dining out support demand. The category attracts franchise investment because established locations can build customer loyalty, local relationships and relatively consistent revenue. Competition remains intense, with independent operators and regional chains seeking the same customers. Brands generally need menu innovation, strong customer service, efficient operations and effective local marketing to stand out. A franchise system can provide structured support in those areas, which may matter to buyers evaluating Zeppes in a crowded market.

The specific Zeppes franchise fee is not stated. Industry benchmarks for full service restaurant franchises commonly place that fee between $30,000 and $50,000. It generally covers the right to use the brand name, trademarks and operating system, along with access to training and continuing support. Zeppes reports a total initial investment ranging from $100,000 to $176,000. That amount is comparatively modest for the category, where real estate, construction and equipment can push initial costs into the hundreds of thousands or millions of dollars. Liquid capital and net worth requirements are also not stated. For an investment of $100,000 to $176,000, buyers would commonly be expected to show liquid capital equal to 20% to 30% of the investment, or $20,000 to $53,000, and net worth of two to three times the investment, or $200,000 to $528,000. Royalty and advertising fees are not stated. Industry ranges commonly place royalties at 4% to 6% of gross sales and advertising fees at 1% to 2% of gross sales. A buyer’s ownership budget should account for the initial investment, possible franchise fees, operating expenses, inventory and working capital.

Operations across the 26 franchised Zeppes units require consistent kitchen and front of house execution. Kitchen responsibilities can include inventory control, food preparation, quality assurance and compliance with health and safety procedures. Front of house work includes reservations, seating, order taking and service delivery, with customer satisfaction and repeat business as central goals. A full service restaurant at this investment level commonly employs 15 to 30 people, including chefs, line cooks, servers, hosts, bartenders and managers. Zeppes format options are not stated. In the wider category, formats may include casual dining with a relaxed setting and moderate prices, upscale dining or a fast casual model combining counter service with a comfortable dining area. New franchisee training would typically cover restaurant operations, culinary techniques, supply chain management, marketing and financial oversight over several weeks. Training may take place at the Streetsboro, OH headquarters or a certified training location. Continuing support commonly includes operating guidance, marketing assistance, supply chain coordination and access to proprietary systems and technology. If a territory is exclusive, it would define an area where the franchisee could operate without direct competition from another Zeppes unit. Multi unit requirements are not stated, though many franchisors support operators who develop multiple locations because of the operating efficiencies that can result.

Buyers assessing Zeppes must build their own financial view using industry benchmarks and projections. Food costs often represent 25% to 35%, labor costs 25% to 35% and occupancy costs 5% to 10%. Speaking with existing franchisees can help a buyer understand revenue generation, cost control and day to day ownership. The 26 active locations each have Google ratings, offering a qualitative measure of customer response and operating consistency. The network’s 26 franchised units and zero company owned locations show that independent operators have joined the system and that the model has maintained a functioning network. Future results will depend on market conditions, operating execution, franchisor support and continued innovation. Buyers should prepare detailed business plans with projected income statements and cash flow analyses based on industry averages and conservative assumptions.

Zeppes has 26 franchised units and zero company owned locations, indicating a development strategy centered on franchisees. Local operators bring market knowledge and can help the brand expand within their communities. Annual net new unit growth is not stated, while the current unit count points to measured expansion within its operating territories. The corporate entity in Streetsboro, OH appears focused on brand development, franchisee support and system consistency rather than running company owned restaurants. Full service restaurant brands must adapt menus to changing tastes, use digital tools to improve the customer experience and manage supply chains for cost and efficiency. Recent Zeppes initiatives are not stated, but common areas of development for a brand in this category include menu engineering, seasonal specials, health conscious options, online ordering, loyalty programs and data analytics. Zeppes’s potential competitive strengths would likely include brand recognition in its operating regions, a distinct menu, a consistent customer experience and an efficient operating system supported by the franchisor. Online visibility, social media engagement and digital ordering can help restaurants reach customers, improve convenience and support retention. These tools may also contribute to the brand’s future position in the full service restaurant category.

A suitable Zeppes franchisee would likely need operational judgment, leadership ability and comfort with the demands of a full service restaurant. Prior experience in restaurant management, hospitality or another customer service intensive industry can help with kitchen operations, front of house service, staffing and inventory control. A community minded owner with an interest in food service may be well suited to building local relationships and repeat business. Franchisors in the Full Service Restaurants category often seek multi unit operators who can use their experience and resources to open and manage several locations. Zeppes multi unit expectations are not stated, but the ability and willingness to grow beyond one unit may benefit an applicant. Available Zeppes territories are not stated. Since the headquarters is in Streetsboro, OH, expansion could plausibly begin in markets that fit the brand’s demographic and operating profile. The usual period from signing a franchise agreement to opening a full service restaurant ranges from 6 to 12 months. That period can include site selection, lease negotiation, construction, equipment procurement, training and pre opening marketing. Zeppes agreement terms are not stated, while franchise agreements commonly use an initial 10 year term with renewal options.

Zeppes requires an initial investment of $100,000 to $176,000 and operates through 26 franchised units with zero company owned locations. That structure gives buyers an entry point into the full service restaurant category that may be lower than many concepts requiring substantially greater real estate, construction or equipment spending. The operating network is customer facing, and its 26 active locations have Google ratings. PeerSense assigns Zeppes a Loan Activity Score of 41, rated Fair. The score indicates that the brand meets fundamental criteria for franchise viability while leaving room for further review of operating strength, franchisee satisfaction and growth potential. PeerSense is a commercial capital advisory firm that provides independent franchise research and introduces franchise buyers to SBA and conventional lenders. It does not lend money, fund franchises or approve loans. Buyers can use the Zeppes franchise profile on PeerSense to review the available independent franchise intelligence.

Loan Activity Score

41/100

SBA Default Rate

3.0%

Active Lenders

4

According to its Franchise Disclosure Document or public business records, Zeppe's has 26 locations, all owned by franchisees. Public SBA loan records show 4 lenders made 33 loans to franchisees of Zeppe's. PeerSense calculates Zeppe's's score as 41 out of 100, using public SBA loan performance and recent lending activity.

Franchising since 1986 · 26 locations

Investment

$100,000 to $176,000

Franchise Fee

$25,000

Total Units

26

26 franchised

Loan Activity Score
High
41
SBA Lending
22
Lender Quality
9
Transparency
4
Reach
3
Momentum
3

Proprietary PeerSense metric

Fair
Capital Sources
4SBA lenders

Distinct lenders in public SBA records for Zeppe's

33

Total SBA loans

$141K

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for Zeppe's

Loan Activity Score Breakdown

Established (25 to 99 loans)

High Confidence
41out of 100
Fair
Market Momentum3/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety22/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence9/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency4/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint3/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

3.0%

vs 10.3% peer avg

SBA Loans

33

Total Volume

$4.6M

Active Lenders

4

1 selective

States

1

vs. SBA Sector Average

+7.3%lower default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Low SBA default rate (3.0%)

Data Insights

Key performance metrics for Zeppe's based on SBA lending data

SBA Default Rate

3.0%

7.3% below peer avg

SBA Loan Volume

33 loans

Across 4 lenders

Lender Diversity

4 lenders

Avg 8.3 loans per lender

Investment Tier

Mid range investment

$100,000 to $176,000 total

Zeppe's: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2004

5 approvals. The best year on record for Zeppe's.

Top SBA State

Ohio

37 SBA financed Zeppe's locations, the densest operator footprint.

Average Loan Size

$157K

Median $367K. Use as a sizing anchor when modeling your own Zeppe's unit.

Lender Concentration

97.4%

Concentrated

Share of Zeppe's approvals captured by the top 3 SBA lenders.

Zeppe's's SBA lending pipeline peaked in 2004 (5 approvals). The last five fiscal years account for 12% of cumulative volume ($734K approved). Operator density is highest in Ohio with 37 SBA financed locations. Average funded ticket sits at $157K, with the median at $367K. Lender mix is concentrated: the top three SBA lenders account for 97.4% of approvals. Credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$80K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$1,035

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Zeppe's, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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Zeppe's

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman