Nancy’s® Pizzeria Franchise Cost, Revenue & Review 2026
- Investment
- $583K – $733K
- Disclosed sales
- $958K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Nancy's Pizzeria is a pizza restaurant franchise known for Chicago-style stuffed and thin-crust pizza. Franchisees run the restaurants, managing food prep, staffing, and dine-in, carryout, and delivery.
FranchiseVerdict summary · 2026
A Nancy’s® Pizzeria franchise requires a total initial investment of $583K – $733K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2023 FDD, average unit revenue was $958K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $583K – $733K
- 27th pct Service Resta…
- Avg gross sales
- $958K
- Outlet subset4th pct Service Resta…
- Royalty
- 6.0%
- 25th pct Service Resta…
- Units
- 29
- 23rd 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 median · 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 $583K – $733K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $958K/year (median $777K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict C (Average), verdict score 63/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Chicago Franchise Systems, Inc.
- CEO title
- President, Chief Executive Officer, Secretary and Treasurer
- David C. Howey, Jr.
- Incorporated in
- IL
- HQ
- 18861 90th Avenue Suite H, Mokena, Illinois 60448
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $2.8M
- vs $2.1M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2023
- Status as of 2023; may have been resolved in a later filing we don't yet have.
Overview
About
- CEO
- David C. Howey, Jr.
- Headquarters
- IL
- Founded
- 1993
- FDD year
- 2023
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost is about typical for a full-service restaurants franchise (near the category median).
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $20K | $70K |
| Equipment, build-out, other | $533K | $633K |
| Total initial investment | $583K | $733K |
Source: Nancy’s® Pizzeria 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $583K – $733K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $70K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $3K |
| Training fee | $1K |
| Transfer fee | $20K |
| Renewal fee | $25K |
| Inventory (initial) | $10K – $41K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 40% below the full-service restaurants norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2023 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Nancy’s® Pizzeria until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$703K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Nancy’s® Pizzeria unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2023 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $958K
- Per unit, per year
- Median gross sales
- $777K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 26 outlets
- vs category median 18
- Range (low → high)
- $306K→$4.5MCited, not corroborated — printed on page 68 of the 2023 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2022
- Fiscal year the figures cover
- Source filing
- FDD 2023
- Disclosed in the 2023 filing, covering 2022
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 801 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 $958K/year in gross sales. Median is $777K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.5x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 9.0% — above the Full-Service Restaurants median of 7.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 7.4% CAGR over 3 years across 29 units — operators are staying and new ones are joining.
Multi-unit rate
Only 13% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 medians
How Nancy’s® Pizzeria Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 29
- Opened
- 1
- 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
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 12.5%
- Net growth (3-yr)
- +7.4%
- Net unit change over 3 years
- 3-yr CAGR
- +7.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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.
Where the owners are · Item 20 owner list
29 current owners across 4 states.
- IL 22
- GA 5
- MO 1
- SC 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
⚠ Grade capped at C: the auditor disclosed a going-concern note (FDD Item 21). The verdict score reflects the underlying financials before that cap.
Nancy's Pizzeria presents moderate-to-caution risk: slow growth, undisclosed net income, active litigation with breach/misrepresentation allegations, and high capital requirements warrant deep validation with current franchisees before proceeding.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Chicago Franchise Systems, Inc. v. Yves Lesly Dominique et al. (No. 22-cv-02396, N.D. Ill.); franchisor sued terminated franchisee for continuing to use Marks and for unpaid royalties; franchisee filed counterclaim alleging breach of agreement, interference with SBA financing, and misrepresentations.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated total revenues of Chicago Franchise Systems, Inc. and Subsidiary for FYE Dec 31, 2022 ($2,818,423): Royalties $1,684,325; Advertising Fund Royalties $705,425; Initial Franchise Fees $30,336; Product Sales and Commissions $309,751; Marketing Incentives $88,586. Going concern doubt noted (past-due taxes, negative working capital, stockholders' deficit).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 63 / 100 verdict
- 01HIGHActive litigation (2022) involving trademark infringement, unpaid royalties, and breach of contract allegations raises questions about franchisor enforcement and franchisee support quality
- 02MINORExtremely slow unit growth (3.6% YoY on a 29-unit system) suggests market saturation, franchisee recruitment challenges, or system-wide performance concerns
- 03MINORCounterclaims alleging misrepresentation regarding marketing support and SBA financing suggest potential gaps in franchisor-provided resources
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · 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 territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Cook County, Illinois |
| Jury trial waiver | Yes |
| Governing law | IL |
| Litigation count | 1 |
View Item 3 litigation summary
Chicago Franchise Systems, Inc. v. Yves Lesly Dominique et al. (No. 22-cv-02396, N.D. Ill.); franchisor sued terminated franchisee for continuing to use Marks and for unpaid royalties; franchisee filed counterclaim alleging breach of agreement, interference with SBA financing, and misrepresentations.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 240 hrs
- Training location
- Mokena, Illinois and training restaurants in Chicago, Illinois area
- Ongoing training
- Required
- Field support
- 112 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Unspecified (franchisor-designated)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Unspecified (franchisor-designated)
Item 20 · call current owners
Franchisee Contacts
29 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Nancy’s® Pizzeria franchise?
The total investment to open a Nancy’s® Pizzeria franchise ranges from $583K – $733K, 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 Nancy’s® Pizzeria franchise owners earn?
According to Item 19 of the Nancy’s® Pizzeria FDD, the average gross sales per unit is $958K. The median is $777K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Nancy’s® Pizzeria?
Nancy’s® Pizzeria is franchised by Chicago Franchise Systems, Inc.. Source: FDD Item 1, 2023 filing.
What is Item 19 in the Nancy’s® Pizzeria 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 Nancy’s® Pizzeria FDD and qualifies whose outlets they describe.
What is Nancy’s® Pizzeria's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Nancy’s® Pizzeria (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 Nancy’s® Pizzeria franchise locations are there?
As of their most recent FDD filing, Nancy’s® Pizzeria has 29 total units in the United States, including 29 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Nancy’s® Pizzeria a good franchise to buy?
FranchiseVerdict rates Nancy’s® Pizzeria as a C-grade franchise with a verdict score of 63 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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 Nancy’s® Pizzeria, you can request corrections or provide updated information.
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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.