Carbone's Pizza
Formerly known as M & T Pizza (Marco's Pizza Franchisee)
Bottom line
- Total investment $329K – $909K including a $25K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $583K/year (median $520K).
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 5 loans (below the industry average).
- System contracting at -8.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Carbone's Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Carbone's Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$699K
on $3.5M purchase
Total debt
$2.8M
SBA $1.7M + senior + seller note
Overview
About
Carbone's Pizza franchisees operate quick-service or casual dining pizza restaurants, managing daily operations including food preparation, staff scheduling, inventory, and customer service. Day-to-day responsibilities include managing kitchen and front-of-house teams, maintaining food quality standards, handling point-of-sale systems, and executing local marketing initiatives within their protected territory.
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 · 3 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
Declining unit count, undisclosed profitability metrics, and ambiguous financial health create meaningful uncertainty about franchisee earnings potential and franchisor stability.
Score breakdown · what drove the 65 / 100 rating
- 01MINORUnit count declining 3.1% YoY (33 units) signals system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 — cannot assess actual profitability or franchisee ROI; average revenue of $582,861 may not translate to viable earnings
- 03MINORTiered royalty structure (4%/3%/2%) incentivizes growth but upper tier achievers may be underserved; most franchisees likely paying 4% on revenue under $1M
- 04MINORInvestment range of $328,600–$909,250 is capital-intensive for pizza segment; break-even timeline and payback period unknown without net income data
- 05HIGHNo litigation disclosed but going concern status is False — suggests potential financial instability or past restructuring; raises questions about franchisor viability
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
32 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Carbone's Pizza · FDD (2026) PDF