FranchiseVerdict
Falbo Bros Pizzeria logo
FV-00904·MODERATEStandard71

Falbo Bros Pizzeria

Food & Beverage - PizzaFranchising since 2010Website
Investment
$40K – $250K
8th pct Pizza
Avg revenue
46th pct Pizza
Royalty
5.0%
22nd pct Pizza
Units
7
12th pct Pizza
SBA default

Bottom line

  • Total investment $40K – $250K including a $15K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 67/100.
  • 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
Culinary Management Services, Inc.
Incorporated in
Minnesota
HQ
6867 Boudin Street NE, Suite 2, Prior Lake, MN 55372
Franchisor revenue
$669K
Most recent fiscal 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 Falbo Bros Pizzeria 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: $40K–$250K
Working capital
$
FDD reports $2K–$10K

Unlevered ROIC · per unit

65%

Above typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$98K
EBITDA margin
13.0%
Total invested
$151K
Payback
19 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

Franchisees operate quick-service pizza restaurants serving made-to-order or signature pizzas, likely managing kitchen operations, food prep, customer service, and POS systems. Day-to-day responsibilities include staffing, inventory management, quality control, and local marketing within protected territory. Franchisees pay 5% royalties on all gross revenue to the franchisor.

CEO
Stuart P. Bell
Founded
2012
FDD year
2023
States available
2

Item 7 · what it costs

The Vitals

Total investment
$40K – $250K
All-in to open one unit
Liquid capital
$2K – $10K
Cash you must have on hand
Franchise fee
$15K
Royalty
5.0%
Gross proceeds after sales tax · typical 6–8%
Ad fund
0.0%
typical 3–5%
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
7
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
8.3%
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
-22.2%
Compounded over last 3 years
2021
7±0
Franchised units
2022
7
Franchised units
2023
9
Franchised units

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

Item 20 · 12 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 · 12 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.

No SBA loan data available for this brand.

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

Risk & Legal

67
Risk · 0-100
MODERATE67 / 100

Falbo Bros is a micro-franchise with concerning financial opacity, going concern status, and no profitability benchmarks — presenting substantial due diligence and cash flow recovery risks.

Score breakdown · what drove the 67 / 100 rating

  1. 01MINORNo Item 19 (Average Unit Volumes) disclosure — impossible to assess profitability or ROI on $40K-$250K investment
  2. 02MEDOnly 7 total units system-wide indicates minimal scale, limited support infrastructure, and high failure risk
  3. 03HIGHGoing Concern status is FALSE — suggests franchisor financial instability or viability questions
  4. 04MINORWide investment range ($40K-$250K) with no corresponding revenue/profit data creates unpredictable outcomes
  5. 05HIGHNo disclosed litigation but going concern issue suggests potential undisclosed legal or operational problems
  6. 06MED5-year term is short for pizza QSR; limited runway to recoup $15K franchise fee + buildout costs

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
predetermined geographical locations such as zip codes, city, or county lines
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Minnesota

Item 11

Training & Operations

Classroom training
0 hrs
On-the-job training
140 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

25 numbers

Locked
(651) 303-••••
The franchisor is Culinary Management Services, Inc., located
MN
(608) 217-••••
WI
(563) 581-••••
IA

One-time purchase · CSV download · Validation questions included

FDD download

Falbo Bros Pizzeria · FDD (2023) PDF

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