FranchiseVerdict
Carbone's Pizza logo
A53/100FDD 2026

Carbone's Pizza — Litigation & Risk

Food & Beverage - Pizza · FDD Items 3, 4 & 5

Back to overview

Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
53 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
4
Government-backed loans issued
Default rate
33.3%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$984K
Avg loan size
$246K
Participating lenders
4

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 53/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 3.1% YoY (33 units) signals system contraction and potential franchisee dissatisfaction
  2. 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
  3. 03MINORTiered royalty structure (4%/3%/2%) incentivizes growth but upper tier achievers may be underserved; most franchisees likely paying 4% on revenue under $1M
  4. 04MINORInvestment range of $328,600–$909,250 is capital-intensive for pizza segment; break-even timeline and payback period unknown without net income data
  5. 05HIGHNo litigation disclosed but going concern status is False — suggests potential financial instability or past restructuring; raises questions about franchisor viability

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.