Manhattan Pizza Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Manhattan Pizza is a pizza franchise serving New York-style pizza and Italian fare for dine-in, carryout, and delivery. Franchisees run the restaurants, managing food prep, staffing, and service.
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]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $401K – $758K
- 19th pct Service Resta…
- Avg gross sales
- $1.6M
- 7th pct Service Resta…
- Royalty
- 5.5%
- 22nd pct Service Resta…
- Units
- 12
- 15th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $401K – $758K including a $34K franchise fee, 5.5% ongoing royalty.
- RETURNSAverage unit revenue of $1.6M/year (median $1.6M).
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- 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
- $675K
- vs $655K prior year
Overview
About
- CEO
- Jack Azar
- Headquarters
- VA
- Founded
- 2013
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 50% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown30 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $401K – $758K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $25K
- Top 40% of category vs category
- Franchise fee
- $34K – $34K
- Top 40% of category vs category
- Royalty
- 5.5%
- percentage · 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 |
| Inventory (initial) | $10K – $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.
What do units actually make?
Average unit sales run 8% below the full-service restaurants norm.
Source: FDD 2025 · Item 19
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
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Manhattan Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
31%
Within the 30–60% "attractive franchise" band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Manhattan Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $7.2M purchase
Total debt
$5.8M
SBA $3.6M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $1.6M
- Per unit, per year
- Median gross sales
- $1.6M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- high mid low with median avg
- Sample size
- 12
- vs category median 18
- Range (low → high)
- $1.3M→$2.0M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 805 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.6M/year in gross sales. Revenue-to-investment ratio: 2.8x.
Fee burden
Total ongoing fee load of 6.5% (near the Full-Service Restaurants average).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -14.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
50% of franchisees own multiple units, a moderate multi-unit rate.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants averages
How Manhattan Pizza Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- 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
- 16.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (3-yr)
- -14.3%
- Net unit change over 3 years
- 3-yr CAGR
- -14.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 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)
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
- limited sample (1 loan) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
1) VA State Corporation Commission v. Manhattan Pizza Company LLC and Jack Azar (2014) re unregistered franchise sales - settled with $15,000 penalty; 2) Franchisor named as defendant in 2021 personal injury lawsuit (resolved without liability); 3) Franchisor filed suit against Maryland franchisee in 2023 for unpaid royalties - default judgment entered
Largest disclosed settlement: $14,000
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: No
- 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 45 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| 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 | 10 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | No |
| Arbitration location | Virginia (Loudoun County) |
| Jury trial waiver | No |
| Governing law | VA |
| Litigation count | 3 |
View Item 3 litigation summary
1) VA State Corporation Commission v. Manhattan Pizza Company LLC and Jack Azar (2014) re unregistered franchise sales - settled with $15,000 penalty; 2) Franchisor named as defendant in 2021 personal injury lawsuit (resolved without liability); 3) Franchisor filed suit against Maryland franchisee in 2023 for unpaid royalties - default judgment entered
Items 10, 11
Training & Operations
- Classroom training
- 26 hrs
- On-the-job training
- 94 hrs
- Training location
- Northern Virginia (affiliate's Manhattan Pizza Businesses in Loudoun and Fairfax Counties)
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
5 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 Item 19 in the Manhattan Pizza FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Manhattan Pizza FDD and qualifies whose outlets they describe.
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 12 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 C-grade franchise with a verdict score of 45 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Manhattan Pizza, you can request corrections or provide updated information.
Other Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.