Ledo PizzaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Ledo Pizza franchise requires a total initial investment of $206K – $673K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 19.2% charge-off rate across 30 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $206K – $673K
- 11th pct Service Resta…
- Avg gross sales
- $1.2M
- 12th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 118
- 42nd pct Service Resta…
- SBA default
- 19.2%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1989. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $206K – $673K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $1.1M).
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 19.2% across 30 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Ledo Pizza System, Inc.
- Incorporated in
- MD
- HQ
- 41 Old Solomons Island Rd., Suite 201, Annapolis, Maryland 21401
- Auditor
- BPS & Associates, LLC
- Audited financials
- Franchisor revenue
- $11.1M
- vs $11.3M prior year
Affiliated brands
- of Ledo Pizza System
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate Ledo Pizza locations—a casual Italian pizza concept—managing daily kitchen operations, customer service, inventory, and staff. Revenue averages $1.16M annually, though profitability metrics are not publicly disclosed by the franchisor, making true earnings potential difficult to validate.
- CEO
- James B. Beall
- Headquarters
- MD
- Founded
- 1989
- FDD year
- 2026
- States available
- 10
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $10K | $25K |
| Equipment, build-out, other | $166K | $618K |
| Total initial investment | $206K | $673K |
Source: Ledo Pizza 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$139K
12.0% margin
Unlevered ROIC
30%
EBITDA / total invested capital
Payback
3.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $206K – $673K
- Better than avg vs category
- Liquid capital req'd
- $10K – $25K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $10K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.1M
- Item 19 type
- gross_sales
- Sample size
- 113 units
- vs category median 13 · large
- Range (low → high)
- $317K→$2.4M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Ledo Pizza Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 118
- Opened
- 4
- Last reporting year
- Closed
- 2
- Turnover rate
- 1.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +2.6%
- Net unit change last year
- 3-yr CAGR
- -4.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
- Transfer rate
- 41.5%
- Owners selling to other franchisees
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Maryland
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 30
- Loan volume
- $8.5M
- Median loan
- $208K
- 50th percentile
- Charge-off rate
- 19.2%
- 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)
- 80.8%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 5
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Ledo Pizza's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 23-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Ledo Pizza presents elevated risk due to system contraction, undisclosed profitability, active trademark litigation, and franchisor financial instability, despite moderate revenue per unit and protected territory.
Litigation (Item 3)
5 case reference(s): 2 pending, 0 settled.
Largest disclosed settlement: $480,775
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BPS & Associates, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 55 / 100 rating
- 01MINORDeclining unit count (-2.6% YoY) indicates system contraction and potential franchisee dissatisfaction
- 02HIGHActive trademark infringement litigation creates brand vulnerability and legal distraction for franchisor
- 03MEDNet income not disclosed despite $1.16M average revenue—suggests profitability concerns or franchisor opacity
- 04MINORHistorical securities violation (1989 Maryland Consent Order) indicates prior regulatory compliance issues
- 05HIGHGoing Concern status is FALSE—potential financial instability of franchisor itself
- 06MINORHigh investment range ($206K-$672K) with declining unit economics raises ROI sustainability questions
- 07HIGHMultiple litigation exposures (trademark suit, former affiliate disputes) signal operational/governance risks
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 5 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 3 |
View Item 3 litigation summary
5 case reference(s): 2 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 140 hrs
- Training location
- On-site and off-site
- POS system
- POSitouch
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POSitouch
Item 20 · call current owners
Franchisee Contacts
93 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ledo Pizza · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ledo Pizza franchise?
The total investment to open a Ledo Pizza franchise ranges from $206K – $673K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ledo Pizza franchise owners earn?
According to Item 19 of the Ledo Pizza FDD, the average gross sales per unit is $1.2M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Ledo Pizza's franchise failure rate?
Based on SBA 7(a) loan data, Ledo Pizza has a charge-off rate of 19.2% across 30 loans, meaning 19.2% 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 Ledo Pizza franchise locations are there?
As of their most recent FDD filing, Ledo Pizza has 118 total units in the United States, including 118 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.
Is Ledo Pizza a good franchise to buy?
FranchiseVerdict rates Ledo Pizza as a B-grade franchise with a risk score of 55 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.