D68/100FDD 2025
Godfather's Pizza — Litigation & Risk
Food & Beverage - Pizza · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
68 / 100
FranchiseVerdict composite
Rating
CAUTION
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
51
Government-backed loans issued
Default rate
18.4%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
9 loans
Loans charged off or defaulted
Total loan volume
$14.5M
Avg loan size
$284K
Participating lenders
39
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
Not waived
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
Nebraska
State whose law governs disputes — relevant if you're not based there
What drove the 68/100 rating
Risk Score Breakdown
- 01MINORStagnant unit growth (1.0% YoY on 606 units indicates system contraction, not expansion)
- 02MINORNo Item 19 disclosure (average revenue and net income withheld — prevents ROI validation)
- 03MEDHigh initial investment range ($711k-$1.34M) with no disclosed profit benchmarks to justify cost
- 04HIGHRecent labor litigation (2022 FLSA class action settled Aug 2025 for $24k — suggests systemic compliance issues with wage/reimbursement practices)
- 05MINORUnprotected territory (franchisees compete directly with other Godfather's locations; no exclusivity)
- 06MINORWeak royalty floor ($150-350/week minimum may indicate struggling franchisees below threshold)
- 07MINOR5-year term only (shorter commitment period suggests franchisor expects higher turnover)
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.