Happy's Pizza Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Happy's Pizza is a quick-service franchise serving pizza plus wings, ribs, and seafood for dine-in, carryout, and delivery. Franchisees run the restaurants, managing food prep, staffing, and delivery.
FranchiseVerdict summary · 2026
A Happy's Pizza franchise requires a total initial investment of $264K – $619K, including a $25K franchise fee. Per the 2025 FDD, average unit revenue was $1.1M[2]. SBA 7(a) loans show a 40.0% charge-off rate across 11 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $264K – $619K
- 41st pct Service Resta…
- Avg gross sales
- $1.1M
- 17th pct Service Resta…
- Royalty
- N/A
- Units
- 54
- 67th pct Service Resta…
- SBA charge-off
- 40.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $264K – $619K including a $25K franchise fee.
- RETURNSAverage unit revenue of $1.1M/year (median $1.1M).
- RISKVerdict D (Below average), verdict score 31/100 (higher is better). SBA loan charge-off rate of 40.0% across 11 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Happy's Pizza Franchise, LLC
- Parent company
- Restaurant Equity Partners, LLC
- CEO title
- Chief Executive Officer and Manager
- Happy Asker
- Incorporated in
- Michigan
- HQ
- 30955 Northwestern Hwy., Suite 300, Farmington Hills, Michigan 48334
- Auditor
- UHY (independent member of UHY International)
- Audited financials
- Franchisor revenue
- $3.4M
- vs $3.3M prior year
Affiliated brands
- and administers and places
- and provides construction
- that sells products to our
- and is the franchisor for
- and owns our Proprietary
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Happy Asker
- Headquarters
- Michigan
- Founded
- 2006
- FDD year
- 2025
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 33% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $10K | $25K |
| Equipment, build-out, other | $229K | $569K |
| Total initial investment | $264K | $619K |
Source: Happy's Pizza 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $264K – $619K
- Middle of category vs category
- Liquid capital req'd
- $10K – $25K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- $1,500 per month flat Royalty Fee
- Ad fund
- 2.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $1,500 per month, paid by ACH on the first business day of each month in advance |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $13K |
| Renewal fee | $6K |
| Inventory (initial) | $15K – $15K |
What do units actually make?
Average unit sales run 13% below the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$147K
14.0% margin
Unlevered ROIC
32%
EBITDA / total invested capital
Payback
3.1 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Happy's Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
32%
Within the 30–60% "attractive franchise" band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Happy's Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.4M purchase
Total debt
$5.9M
SBA $3.7M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $1.1M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales only (no net income)
- Sample size
- 40 outlets
- vs category median 20
- Range (low → high)
- $471K→$1.9M
- Cohort dispersion (min → max)
- Quartile band
- $865K→$1.2M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.1M/year in gross sales. Revenue-to-investment ratio: 2.4x.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -3.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Happy's Pizza Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 54
- Opened
- 3
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -3.6%
- Net unit change over 3 years
- 3-yr CAGR
- -3.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 3
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 6
- Franchisor's next-year forecast
- Transfer rate
- 5.3%
- Owners selling to other franchisees
- Ceased ops
- 10.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $4.7M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 40.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 60.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 4
- Typical loan rate
- 6.0%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 182
- 3.9 per loan
- Lender concentration
- 64%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing Happy's Pizza franchisees
Showing 3 of 4 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Happy's Pizza's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
A 40.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 40.0% — 150% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Criminal fraud indictment of founders, investor lawsuits for misrepresentation, shrinking unit count, and undisclosed profitability create an extreme-risk profile unsuitable for most prospective franchisees.
Litigation (Item 3)
1) US v. Happy Asker/Maher Bashi (2013 criminal tax fraud case, franchisor not a party; individuals convicted, sentenced, ordered restitution). 2) Edmond Mourad et al. v. Happy's Pizza Franchise, LLC (2015 investor suit over $335,000 franchise fee/deposit refund alleging misrepresentation about liquor license; settled, franchisor refunded $335,000).
Largest disclosed settlement: $335,000
Bankruptcy (Item 4)
Disclosed in last 7 years
On Sept 11, 2024, BurgerFi International Inc. (predecessor of affiliate BurgerFi) and affiliates filed Chapter 11; assets ultimately sold and acquired via Restaurant Group to BurgerFi Franchise, LLC (franchisor's affiliate), confirmed by court Final Order Mar 12, 2025.
Audited financials (Item 21)
Yes · UHY (independent member of UHY International)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 31 / 100 verdict
- 01HIGHCriminal indictment of co-founders for conspiracy to defraud U.S. and tax fraud raises fundamental integrity and leadership concerns
- 02HIGHActive civil litigation by investors alleging false representations about liquor licenses indicates systematic misrepresentation to franchisees
- 03HIGHGoing Concern status is FALSE, suggesting potential financial distress or viability questions at corporate level
- 04MINORSystem shrinking at -5.3% YoY (54 units) indicates declining franchisee confidence and market rejection
- 05MEDNet income not disclosed despite $1.07M average revenue—transparency red flag suggesting poor unit-level profitability
- 06MEDHigh investment range ($263.7K–$619.3K) combined with $1.5K monthly royalties creates significant franchisee debt burden relative to undisclosed margins
- 07HIGHCriminal defendants (Asker and Bashi) still in active management poses ongoing reputational and operational risk
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 6 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Farmington Hills, Michigan |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 2 |
View Item 3 litigation summary
1) US v. Happy Asker/Maher Bashi (2013 criminal tax fraud case, franchisor not a party; individuals convicted, sentenced, ordered restitution). 2) Edmond Mourad et al. v. Happy's Pizza Franchise, LLC (2015 investor suit over $335,000 franchise fee/deposit refund alleging misrepresentation about liquor license; settled, franchisor refunded $335,000).
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 315 hrs
- Training location
- Franchisor's offices (classroom) and certified training Restaurant(s) in southeast Michigan (on-the-job)
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisor
- Franchisor financing
- Not offered
- Item 10
- POS system
- POS system (unspecified brand)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS system (unspecified brand)
Item 20 · call current owners
Franchisee Contacts
60 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Happy's Pizza · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Happy's Pizza franchise?
The total investment to open a Happy's Pizza franchise ranges from $264K – $619K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Happy's Pizza franchise owners earn?
According to Item 19 of the Happy's Pizza FDD, the average gross sales per unit is $1.1M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Happy's Pizza FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Happy's Pizza FDD and qualifies whose outlets they describe.
What is Happy's Pizza's franchise failure rate?
Based on SBA 7(a) loan data, Happy's Pizza has a charge-off rate of 40.0% across 11 loans, meaning 40.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Happy's Pizza franchise locations are there?
As of their most recent FDD filing, Happy's Pizza has 54 total units in the United States, including 54 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Happy's Pizza a good franchise to buy?
FranchiseVerdict rates Happy's Pizza as a D-grade franchise with a verdict score of 31 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Happy's Pizza, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.