Cannoli Kitchen Pizza
Bottom line
- Total investment $403K – $536K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.3M/year. Estimated payback in 2.2 years.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 169 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Cannoli Kitchen Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
37%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Cannoli Kitchen Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.9M
on $9.3M purchase
Total debt
$7.5M
SBA $4.7M + senior + seller note
Overview
About
Franchisees operate quick-service pizza restaurants featuring Italian cannoli-inspired concepts. Day-to-day operations include food preparation, counter service, order fulfillment, inventory management, and local marketing across unprotected territories with minimal brand support infrastructure.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-risk micro-franchise with severe franchisor financial distress, troubling affiliate litigation history, minimal system scale, and unproven unit economics.
Score breakdown · what drove the 62 / 100 rating
- 01MINOROnly 6 units system-wide with unknown/stagnant growth trajectory indicates minimal brand scale and market validation
- 02HIGHGoing Concern = False signals serious franchisor financial distress or viability questions
- 03HIGHSignificant litigation history across affiliated brands (Signarama, Great Greek, Graze Craze) involving FTC injunctions, unregistered sales, and fee collection violations suggests systemic compliance and management issues
- 04MINORNo protected territory despite high initial investment ($402k-$536k) creates direct competition risk from other franchisees
- 05MINOR6% royalty on $1.33M average revenue ($80k annual) combined with unproven unit economics across tiny system raises sustainability concerns
- 06MINOR35-year term is unusually long for food franchise with only 6 units and no growth evidence
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
10 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cannoli Kitchen Pizza · FDD (2024) PDF