Bottom line
- Total investment $226K – $433K including a $20K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 169 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Chanello’s® Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Overview
About
Franchisees operate quick-service or casual-dining pizza restaurants serving dine-in, carryout, and delivery customers. Day-to-day operations include food preparation, inventory management, staffing, customer service, and marketing within their protected territory. The business model emphasizes standardized recipes and operational procedures across the 30-unit network.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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
Small, opaque pizza franchise with no financial disclosure, limited unit count, and significant data gaps that prevent validation of investment returns.
Score breakdown · what drove the 47 / 100 rating
- 01MINORNo Item 19 financial performance disclosure — impossible to validate ROI claims or benchmark profitability
- 02MEDOnly 30 units system-wide indicates small, unproven franchise network with limited scale and support infrastructure
- 03MINORWide investment range ($226K-$433K) suggests inconsistent buildout costs, territory variations, or undefined scope
- 04MEDNo disclosed average revenue or net income prevents due diligence and raises concerns about franchisor transparency
- 05MED5% royalty on undisclosed sales base means franchisees may face margin pressure with no visibility into peer performance
- 06MED10-year term is relatively long for unproven concept with minimal disclosed track record
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Chanello’s® Pizza · FDD (2025) PDF