FranchiseVerdict
Chanticlear Pizza logo
FV-00498·CAUTIONExcellent81

Chanticlear Pizza

Food & Beverage - PizzaFranchising since 2003Website
Investment
$247K – $326K
46th pct Pizza
Avg revenue
46th pct Pizza
Royalty
4.0%
2nd pct Pizza
Units
11
25th pct Pizza
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $247K – $326K including a $20K franchise fee, 4.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Chanticlear Franchise System, LLC
Incorporated in
Minnesota
HQ
18015 Ulysses Street N.E., Suite 400, Ham Lake, Minnesota 55304
Auditor
Lethert, Skwira, Schultz & Co. LLP
Audited financials
Franchisor revenue
$509K
vs $457K prior year

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 Chanticlear Pizza unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $247K–$326K
Working capital
$
FDD reports $25K–$40K

Unlevered ROIC · per unit

26%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$83K
EBITDA margin
11.0%
Total invested
$319K
Payback
46 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Chanticlear Pizza franchisees operate quick-service pizza restaurants, managing daily food preparation, point-of-sale operations, customer service, delivery coordination (if applicable), and staff scheduling. Franchisees are responsible for local marketing, inventory management, and maintaining brand standards across menu items and customer experience.

CEO
Dale R. Heille
Founded
2003
FDD year
2024
States available
1

Item 7 · what it costs

The Vitals

Total investment
$247K – $326K
All-in to open one unit
Liquid capital
$25K – $40K
Cash you must have on hand
Franchise fee
$20K
Royalty
4.0%
percentage of gross sales · typical 6–8%
Ad fund
Currently 1% of Gross Sales (can increase up to 3%)
Total fee load
5.0%
vs 9–13% typical

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

Total units
11
Opened
0
Last reporting year
Closed
1
Turnover rate
9.1%
Company-owned
1
Corporate units in the system
% franchised
91%
vs corporate-owned
Net growth (yr3)
-9.1%
Net unit change last year
3-yr CAGR
-9.1%
Compounded over last 3 years
2022
10-1
Franchised units
2023
11
Franchised units
2024
11
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 5 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 5 states
Not registered

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.

Total loans
7
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

72
Risk · 0-100
CAUTION72 / 100

Chanticlear Pizza presents HIGH RISK due to a contracting franchise system (down 9.1% YoY), undisclosed financials preventing ROI analysis, franchisor going concern issues, and prior regulatory violations.

Score breakdown · what drove the 72 / 100 rating

  1. 01MED9.1% unit decline year-over-year indicates shrinking franchise system with active closures
  2. 02HIGHGoing Concern status is FALSE — potential solvency or operational viability issues with franchisor
  3. 03MINORHistorical SEC/state regulatory violation in 2003 for unregistered franchise sales shows compliance failures
  4. 04MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation
  5. 05MINOR11 total units is critically small system size with minimal scale and support infrastructure
  6. 06MED4% royalty on undisclosed revenue makes it impossible to project actual cash flow or profitability

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius and Drive-time
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
1.5 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Minnesota

Item 11

Training & Operations

Classroom training
0 hrs
On-the-job training
180 hrs

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

24 numbers

Locked
(605) 773-••••
MN
(317) 232-••••
MN
(503) 378-••••
MN

One-time purchase · CSV download · Validation questions included

FDD download

Chanticlear Pizza · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above