Bottom line
- Total investment $305K – $495K including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $732K/year.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 169 loans (below the industry average).
- Emerging franchise — only 2 years of franchising with 1 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Isi’s Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Isi’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
$585K
on $2.9M purchase
Total debt
$2.3M
SBA $1.5M + senior + seller note
Overview
About
Franchisees operate pizza restaurants serving dine-in, takeout, and delivery customers. Day-to-day operations include food preparation, inventory management, staffing, customer service, and local marketing within their protected territory.
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 · 6 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
Single-unit system with franchisor going concern doubts, undisclosed profitability, and unproven business model creates extreme investment risk.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 1 franchisee unit in system indicates failed or pre-launch franchise model with zero proven scalability
- 02HIGHGoing Concern status is FALSE — suggests financial instability or operational viability questions at franchisor level
- 03MEDAverage Net Income not disclosed — impossible to validate $305k-$494.5k investment ROI claims or payback period
- 04MINORSingle unit makes $731.7k revenue claim unverifiable and non-representative of franchisee experience
- 05MINORHigh initial investment ($305k-$494.5k) with no multi-unit success stories or comparable franchisee performance data
- 06MINOR10-year term with only 1 operating unit suggests franchisor may lack operational infrastructure and support systems
- 07MINORUnknown growth trajectory with only 1 unit makes future expansion and system viability highly uncertain
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
8 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Isi’s Pizza · FDD (2025) PDF