B63/100FDD 2025
Isi’s Pizza — Litigation & Risk
Food & Beverage - Pizza · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 100
FranchiseVerdict composite
Rating
MODERATE
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
169
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 63/100 rating
Risk Score Breakdown
- 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 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.