Manhattan PizzaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Manhattan Pizza franchise requires a total initial investment of $401K – $758K, including a $34K franchise fee and an ongoing 5.5% royalty[2]. Per the 2025 FDD, average unit revenue was $1.6M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $401K – $758K
- 27th pct Service Resta…
- Avg gross sales
- $1.6M
- 17th pct Service Resta…
- Royalty
- 5.5%
- 24th pct Service Resta…
- Units
- 13
- 24th pct Service Resta…
- SBA default
- N/A
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
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).
- Verdict A (Top Quintile) with a risk score of 25/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Manhattan Pizza Company Franchising, LLC
- Parent company
- Manhattan Pizza Company, LLC
- CEO title
- President
- Jack Azar
- CEO experience
- 26 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- VA
- HQ
- 307 E. Market Street, Second Floor, Leesburg, Virginia 20176
- Auditor
- Crowe Donahue PLLC
- Audited financials
- Franchisor revenue
- $655K
- vs $675K prior year
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.
- CEO
- Jack Azar
- Headquarters
- VA
- Founded
- 2013
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing · 30 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Single Unit) | $34K | $34K | |
| Construction and Leasehold Improvements (Single Unit) | $180K | $380K | |
| Real Estate Deposit and Rent (first three months, Single Unit) | $5K | $15K | |
| Furnishings (Single Unit) | $20K | $40K | |
| Fixtures (Single Unit) | $18K | $30K | |
| Signage (Single Unit) | $10K | $20K | |
| Equipment, including computer and POS system (Single Unit) | $80K | $150K | |
| Inventory (Single Unit) | $10K | $10K | |
| Utility Deposits and Fees (Single Unit) | $2K | $2K | |
| Business Licenses (Single Unit) | $1K | $3K | |
| Grand Opening Event and Marketing (Single Unit) | $15K | $25K | |
| Additional Funds (first three months, Single Unit) | $15K | $25K | |
| Insurance (Single Unit) | $4K | $6K | |
| Architect Fees (Single Unit) | $8K | $15K | |
| Legal & Accounting (Single Unit) | $0 | $4K | |
| Initial Franchise Fee (Multi-Unit, min 2 units) | $65K | $65K | |
| Construction and Leasehold Improvements (Multi-Unit, 2 units) | $360K | $760K | |
| Real Estate Deposit and Rent (first three months, Multi-Unit) | $10K | $20K | |
| Furnishings (Multi-Unit) | $40K | $80K | |
| Fixtures (Multi-Unit) | $36K | $60K | |
| Total initial investment | $1.2M | $2.3M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$185K
11.5% margin
Unlevered ROIC
31%
EBITDA / total invested capital
Payback
3.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $401K – $758K
- Better than avg vs category
- Liquid capital req'd
- $15K – $25K
- Better than avg vs category
- Franchise fee
- $34K – $34K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $200 |
| Training fee | $200 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.6M
- Per unit, per year
- Median gross sales
- $1.6M
- Item 19 type
- Average and Median Revenue
- Sample size
- 12 units
- vs category median 13
- Range (low → high)
- $1.3M→$2.0M
- Cohort dispersion (min → max)
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Manhattan Pizza Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -14.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
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 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $642K
- Median loan
- $642K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Manhattan Pizza's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
Three matters disclosed: (1) Virginia State Corporation Commission settlement in November 2014 against parent MPC, affiliate Tanaz, and President Jack Azar for selling three unregistered franchises without registration or disclosure documents, settled with $14,000 penalty plus $1,000 investigation costs; (2) 2021 personal injury lawsuit against franchisee and delivery driver where franchisor was named defendant but resolved without liability; (3) 2023 franchisor lawsuit against Maryland franchisee and Kishan Bikki for unpaid royalty fees, resulting in default judgment against Mr. Bikki.
Largest disclosed settlement: $15,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Crowe Donahue PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 25 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Proximity |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 3 |
View Item 3 litigation summary
Three matters disclosed: (1) Virginia State Corporation Commission settlement in November 2014 against parent MPC, affiliate Tanaz, and President Jack Azar for selling three unregistered franchises without registration or disclosure documents, settled with $14,000 penalty plus $1,000 investigation costs; (2) 2021 personal injury lawsuit against franchisee and delivery driver where franchisor was named defendant but resolved without liability; (3) 2023 franchisor lawsuit against Maryland franchisee and Kishan Bikki for unpaid royalty fees, resulting in default judgment against Mr. Bikki.
Items 10, 11
Training & Operations
- Classroom training
- 26 hrs
- On-the-job training
- 94 hrs
- Training location
- On-site and corporate
- Time to open
- 9 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Manhattan Pizza · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Manhattan Pizza franchise?
The total investment to open a Manhattan Pizza franchise ranges from $401K – $758K, with an initial franchise fee of $34K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Manhattan Pizza franchise owners earn?
According to Item 19 of the Manhattan Pizza FDD, the average gross sales per unit is $1.6M. The median is $1.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Manhattan Pizza's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Manhattan Pizza (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Manhattan Pizza franchise locations are there?
As of their most recent FDD filing, Manhattan Pizza has 13 total units in the United States, including 12 franchised units and 0 company-owned units.
Is Manhattan Pizza a good franchise to buy?
FranchiseVerdict rates Manhattan Pizza as a A-grade franchise with a risk score of 25 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.