Nancy’s® PizzeriaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Nancy’s® Pizzeria franchise requires a total initial investment of $583K – $1.9M, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2023 FDD, average unit revenue was $1.8M[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $583K – $1.9M
- 36th pct Service Resta…
- Avg gross sales
- $1.8M
- 19th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 29
- 31st 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
Franchising since 1994. Systems this mature have refined operations and brand recognition.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $583K – $1.9M including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.8M/year (median $1.4M).
- Verdict B (Above Average) with a risk score of 62/100.
- Auditor 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
- Legal entity
- CHICAGO FRANCHISE SYSTEMS, INC.
- 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
Nancy's Pizzeria franchisees operate full-service pizza restaurants, managing daily food preparation, customer service, staffing, inventory, and point-of-sale operations. Franchisees are responsible for local marketing, rent, labor, and ingredients while paying 6% of gross sales to the franchisor and adhering to operational standards under a 10-year protected territorial agreement.
- CEO
- David C. Howey, Jr.
- Headquarters
- IL
- Founded
- 1993
- FDD year
- 2023
- States available
- 4
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 | $1.8M |
| Total initial investment | $583K | $1.9M |
Source: Nancy’s® Pizzeria 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$158K
9.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $583K – $1.9M
- Better than avg vs category
- Liquid capital req'd
- $20K – $70K
- Better than avg vs category
- Franchise fee
- $30K – $50K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · 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 | $300 |
| Training fee | $1K |
| Transfer fee | $20K |
| Renewal fee | $25K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.8M
- Per unit, per year
- Median gross sales
- $1.4M
- Item 19 type
- gross_sales
- Sample size
- 26 units
- vs category median 13
- Range (low → high)
- $306K→$4.7M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Nancy’s® Pizzeria Compares
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
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 12.5%
- Net growth (yr3)
- +3.6%
- Net unit change last year
- 3-yr CAGR
- +7.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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)
Chicago Franchise Systems, Inc. v. Yves Lesly Dominique, et al., No. 22-cv-02396 (U.S. District Court, Northern District of Illinois). Filed May 6, 2022. Franchisor seeks injunction against terminated franchisee's continued use of Marks and 'formerly Nancy's Pizzeria' designation, recovery of unpaid royalties and advertising contributions. Defendant filed counterclaim October 26, 2022 alleging breach of franchise agreement, interference with SBA financing, and misrepresentations. Franchisor denies allegations and plans vigorous defense.
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)
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 62 / 100 rating
- 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
- 03MEDNet income not disclosed in FDD Item 19 — unable to validate actual profitability claims; average revenue of $1.76M does not guarantee franchisee profitability after COGS, labor, and 6% royalties
- 04MEDHigh initial investment range ($582K–$1.9M) with limited transparency on break-even timeline and actual unit economics
- 05MINORCounterclaims 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
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 | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rights | 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 | Chicago, Illinois |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 1 |
View Item 3 litigation summary
Chicago Franchise Systems, Inc. v. Yves Lesly Dominique, et al., No. 22-cv-02396 (U.S. District Court, Northern District of Illinois). Filed May 6, 2022. Franchisor seeks injunction against terminated franchisee's continued use of Marks and 'formerly Nancy's Pizzeria' designation, recovery of unpaid royalties and advertising contributions. Defendant filed counterclaim October 26, 2022 alleging breach of franchise agreement, interference with SBA financing, and misrepresentations. Franchisor denies allegations and plans vigorous defense.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 240 hrs
- Training location
- franchisor's principal place of business and on-site
- Field support
- 112 hrs/yr
- On-site visits per year
- POS system
- Speedline Service
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Speedline Service
Item 20 · call current owners
Franchisee Contacts
37 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Nancy’s® Pizzeria · FDD (2023) PDF
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 – $1.9M, 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 $1.8M. The median is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 27 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 B-grade franchise with a risk score of 62 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.