FranchiseVerdict
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B57/100FDD 2023

Nancy’s® Pizzeria — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
57 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Illinois
State whose law governs disputes — relevant if you're not based there

What drove the 57/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation (2022) involving trademark infringement, unpaid royalties, and breach of contract allegations raises questions about franchisor enforcement and franchisee support quality
  2. 02MINORExtremely slow unit growth (3.6% YoY on a 29-unit system) suggests market saturation, franchisee recruitment challenges, or system-wide performance concerns
  3. 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
  4. 04MEDHigh initial investment range ($582K–$1.9M) with limited transparency on break-even timeline and actual unit economics
  5. 05MINORCounterclaims alleging misrepresentation regarding marketing support and SBA financing suggest potential gaps in franchisor-provided resources

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.