F80/100FDD 2025
Cicis Pizza — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Elevated Risk
6 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
6
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
80 / 100
FranchiseVerdict composite
Rating
AVOID
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
438
Government-backed loans issued
Default rate
24.1%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
97 loans
Loans charged off or defaulted
Total loan volume
$131.8M
Avg loan size
$301K
Participating lenders
85
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 80/100 rating
Risk Score Breakdown
- 01MINORSystem contracted 3.8% YoY (270 units) indicating declining franchise health and potential unit closures
- 02HIGHMultiple active litigations including co-ownership disputes (Gala/Dharod), franchisee payment recovery suits (Bixby, Bankole), and post-termination enforcement actions suggesting franchisor-franchisee conflict and collection issues
- 03MINORNet income of $158,533 on $1.4M revenue (11.3% margin) is modest for pizza/buffet concept with high operational complexity and labor costs
- 04MINORWide investment range ($242K-$1M+) with unclear variables; high end represents 4x low end, suggesting inconsistent unit economics or location-dependent performance
- 05MEDNo Item 19 financial performance representations disclosed, preventing validation of stated average revenue figures or profitability benchmarks
- 06HIGHLitigation pattern reveals systemic issues: co-ownership conflicts suggest internal franchisor instability, while franchisee payment suits indicate cash flow problems across system
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.