Happy's Pizza Franchise Cost, Revenue & Review 2026
- Investment
- $264K – $619K
- Disclosed sales
- $1.1M
- gross sales, not profit
- SBA charge-off
- 40.0%
- on 11 loans
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 →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $264K – $619K
- 40th pct Service Resta…
- Avg gross sales
- $1.1M
- 20th pct Service Resta…
- Royalty
- Flat fee
- 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 median · 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).
- GROWTHNegative: net -3 franchised outlets in the latest year (3 opened, 6 closed) (Item 20).
- 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
- FDD Item 1, page 6 of the 2025 FDD
- 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 9% 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
- Top 40% 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 8% above the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Happy's Pizza until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$459K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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 19 · large
- Range (low → high)
- $471K→$1.9MCited, not corroborated — printed on page 58 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- 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 781 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 medians
How Happy's Pizza Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 6
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 0
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- 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)
Where the owners are · Item 20 owner list
60 current owners across 2 states.
- MI 50
- OH 10
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 11 loans · 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Happy's Pizza from SBA 7(a) FOIA data.
- Principal loss rate
- 18.8%
- Avg SBA guarantee
- 68%
- Avg interest rate
- 6.00%
- Avg chargeoff amount
- $222K
- Lender concentration
- 63.6%
- Job velocity
- 3.9 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 182
Top SBA lendersTop lender holds 64% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 7 | $1.6M | 42.9% |
| 2 | BankUnited, National Association | 2 | $836K | 50.0% |
| 3 | Horizon Bank | 1 | $875K | 0.0% |
| 4 | First Internet Bank of Indiana | 1 | $1.4M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MIMichigan | 11 | 4 | 40.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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)
Subject: the franchisor is a named party (defendant).
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).
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 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
- 03MINORSystem shrinking at -5.3% YoY (54 units) indicates declining franchisee confidence and market rejection
- 04MEDNet income not disclosed despite $1.07M average revenue—transparency red flag suggesting poor unit-level profitability
- 05MEDHigh investment range ($263.7K–$619.3K) combined with $1.5K monthly royalties creates significant franchisee debt burden relative to undisclosed margins
- 06HIGHCriminal 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 territory |
| 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
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.
Who owns Happy's Pizza?
Happy's Pizza is franchised by Happy's Pizza Franchise, LLC. Its parent company is Restaurant Equity Partners, LLC. Source: FDD Item 1, 2025 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.