Bottom line
- Total investment $177K – $494K including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 77/100. SBA loan default rate of 0.0% across 26 loans (below the industry average).
- 27 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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 Extreme Pita unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Overview
About
Franchisees operate quick-service pita sandwich restaurants, preparing fresh-made pitas with protein and vegetable fillings, managing daily food preparation, inventory, staffing, and customer service. Operations focus on high-volume, lower-ticket transactions typical of fast-casual QSR concepts.
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 · 30 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
Extreme Pita presents extreme risk: zero operating units, failed going concern status, multi-state franchise law violations, alleged financial misrepresentations, and no territorial protection — investment appears highly speculative with minimal franchisor support infrastructure.
Score breakdown · what drove the 77 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may be financially unstable or unable to support franchisees
- 02MEDZero operating units disclosed with unknown growth trajectory — system appears to be collapsed or non-existent
- 03HIGHExtensive litigation history including state franchise law violations (FIPA, WFIPA, NYFSA) and breach of contract claims
- 04MEDMisrepresentation of financial performance alleged — Item 19 (Average Unit Volume) not disclosed, making ROI impossible to validate
- 05MINORNo territory protection despite $176k-$494k investment — franchisees face direct competition from other franchisees and franchisor
- 06MEDHigh franchise fee ($30,000) relative to apparent system viability and lack of disclosed revenue/profitability data
- 07MINORLease and area developer agreement disputes indicate franchisor-franchisee relationship breakdown
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
31 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Extreme Pita · FDD (2024) PDF