Bottom line
- Total investment $264K – $619K including a $25K franchise fee.
- Average unit revenue of $1.1M/year (median $1.1M).
- Rated CAUTION with a risk score of 74/100. SBA loan default rate of 0.0% across 15 loans (below the industry average).
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 Happy's Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
33%
In Yale's "attractive" band (30–60%)
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 $7.5M purchase
Total debt
$6.0M
SBA $3.7M + senior + seller note
Overview
About
Happy's Pizza franchisees operate quick-service pizza restaurants serving dine-in, carryout, and delivery customers. Day-to-day operations include food preparation, inventory management, staffing, point-of-sale transactions, and liquor license compliance. Franchisees are responsible for local marketing, rent, utilities, and managing 8–15 employees on average.
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 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)
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
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.
Score breakdown · what drove the 74 / 100 rating
- 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
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
60 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Happy's Pizza · FDD (2025) PDF