Bottom line
- Total investment $235K – $511K including a $55K franchise fee, 10.0% ongoing royalty.
- Average unit revenue of $920K/year. Estimated payback in 1.7 years.
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 169 loans (below the industry average).
- 15 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 FRESHSLICE PIZZA unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Overview
About
FreshSlice Pizza franchisees operate quick-service or casual-dining pizza restaurants, managing daily food preparation, customer service, inventory, and local marketing. Franchisees generate average gross revenue of ~$920k annually with net income averaging ~$225k, but must navigate complex royalty calculations tied to 'non-core' items while adhering to strict brand standards under intense franchisor oversight.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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
Aggressive growth (46% YoY), multiple active litigation cases involving franchisee disputes, unclear royalty/revenue structure, and absent going concern disclosure indicate substantial operational and financial risk despite solid average unit economics.
Score breakdown · what drove the 52 / 100 rating
- 01HIGHMultiple pending and past litigation involving rebranding breaches, franchise agreement violations, and unpaid promissory notes—primary concern is franchisor enforcement inconsistency and franchisee disputes over obligations
- 02MINOR46% YoY unit growth appears unsustainable and may mask underlying franchisee churn; typical mature pizza franchises grow 5-15% YoY, suggesting aggressive recruitment or accounting anomalies
- 03MINOR10% royalty on non-core items only is vague and suggests potential revenue recognition disputes; unclear what constitutes 'non-core' and how franchisor audits compliance
- 04HIGHNo 'Going Concern' disclosure is FALSE—this is a critical red flag indicating potential financial instability at the corporate level or accounting irregularities
- 05HIGHHigh initial investment ($235k-$511k) combined with litigation history and unclear royalty structure creates elevated franchisee default risk
- 06MINORUnknown franchise term length is unusual and suggests either unstable agreement terms or lack of transparency in franchise disclosure
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
82 numbers
One-time purchase · CSV download · Validation questions included
FDD download
FRESHSLICE PIZZA · FDD (2025) PDF