Bottom line
- Total investment $1.4M – $2.6M including a $35K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 LaRosa’s unit return on the cash you put in?
Unlevered ROIC · per unit
4%
Below typical band (30–60%)
Overview
About
LaRosa's franchisees operate regional pizza restaurants featuring a proprietary thin-crust pizza style and casual dining environment. Daily operations include food preparation, inventory management, customer service, and staff supervision across lunch and dinner service. Franchisees manage P&L, marketing at the local level, and compliance with brand standards while paying 4% of net sales in ongoing royalties.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 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.
3
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
LaRosa's presents meaningful caution due to shrinking unit count, lack of financial transparency (no Item 19), high capital requirements, and weak system scale—suitable only for investors who can independently validate unit economics with current franchisees.
Score breakdown · what drove the 64 / 100 rating
- 01MINORUnit count declining 3.5% YoY indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02MINORNo Item 19 (average revenue/net income) disclosure prevents ROI validation and suggests financials may not support the $1.4M–$2.6M investment range
- 03MEDHigh initial investment ($1.4M–$2.6M) combined with 4% royalty and undisclosed profitability creates significant downside risk without transparency
- 04MED64-unit system is relatively small; limited scale creates operational vulnerability and reduces support infrastructure compared to larger franchisors
- 05MINOR10-year term is longer than industry standard (5–7 years typical), locking franchisees into unfavorable renewal negotiations
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.
FDD download
LaRosa’s · FDD (2024) PDF