Manhattan Pizza
Bottom line
- Total investment $401K – $758K including a $34K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $1.6M/year (median $1.6M).
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
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 Manhattan Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
44%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Manhattan Pizza units return on equity?
Equity IRR · 5-yr
33.8%
4.30× MOIC
Year-1 DSCR
2.40×
EBITDA ÷ debt service
Equity required
$5.7M
on $15.3M purchase
Total debt
$9.6M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate full-service or quick-service pizza restaurants under the Manhattan Pizza brand, managing daily kitchen operations, food preparation, customer service, delivery logistics, and staff scheduling. They generate revenue through dine-in, takeout, and delivery channels while paying 5.5% royalties on all gross sales to the franchisor.
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 · 18 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
Manhattan Pizza presents meaningful risk due to undisclosed profitability, stagnant unit count, franchisor litigation history, and concerning going concern status — requiring extensive validation before investment.
Score breakdown · what drove the 63 / 100 rating
- 01MEDNo Item 19 (average net income) disclosed — cannot verify actual profitability despite $1.6M average revenue claim
- 02MINOROnly 13 units with unknown growth trajectory — suggests stagnant or declining system
- 03HIGHMultiple litigation incidents (2014 unregistered franchise sales, 2021 personal injury, 2023 royalty default judgment) indicate compliance and relationship issues
- 04HIGHGoing Concern = False — potential financial instability at franchisor level
- 05MINORHigh initial investment ($400K-$758K) paired with unknown unit growth creates ROI uncertainty
- 06MED5.5% royalty on gross sales provides no margin cushion if net income is undisclosed
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Manhattan Pizza · FDD (2025) PDF