Mazzio’s Italian Eatery
Bottom line
- Total investment $413K – $2.2M including a $30K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.0M/year.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- System contracting at -12.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Mazzio’s Italian Eatery unit return on the cash you put in?
Unlevered ROIC · per unit
13%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Mazzio’s Italian Eatery units return on equity?
Equity IRR · 5-yr
43.5%
6.08× MOIC
Year-1 DSCR
2.01×
EBITDA ÷ debt service
Equity required
$2.8M
on $11.2M purchase
Total debt
$8.4M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate casual Italian dining restaurants serving traditional pasta, pizza, and Italian entrees. Daily operations include managing front-of-house service, kitchen staff, food inventory, and marketing to drive the $1M+ annual revenue average. Unit economics heavily depend on foot traffic, labor cost control, and managing food costs while remitting 4% royalties to corporate.
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 · 24 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
Declining franchise system with undisclosed profitability metrics and significant unit closures create substantial uncertainty about franchisee viability and franchisor stability.
Score breakdown · what drove the 65 / 100 rating
- 01MEDSystem contracting sharply: 8.7% unit decline YoY indicates franchisees are closing or not renewing
- 02MINORNo net income disclosure: FDD Item 19 absence prevents ROI validation; average revenue of $1.017M alone doesn't guarantee profitability
- 03MINORWide investment range ($413K-$2.164M) suggests inconsistent unit economics or hidden costs not detailed upfront
- 04MINORHigh royalty burden at 4% on thin restaurant margins (typically 3-9% net); combined with occupancy/labor costs may squeeze profitability
- 05MED15-year term is lengthy; franchisees locked in during potential market downturns with limited exit flexibility
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
62 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mazzio’s Italian Eatery · FDD (2025) PDF