Nancy’s® Pizzeria
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).
- Rated MODERATE with a risk score of 56/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Nancy’s® Pizzeria unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Nancy’s® Pizzeria units return on equity?
Equity IRR · 5-yr
39.6%
5.31× MOIC
Year-1 DSCR
2.13×
EBITDA ÷ debt service
Equity required
$3.6M
on $12.3M purchase
Total debt
$8.7M
SBA $5.0M + senior + seller note
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.
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 · 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 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.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 56 / 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
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
37 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Nancy’s® Pizzeria · FDD (2023) PDF