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B65/100FDD 2024
Noble Roman’s Pizza — Litigation & Risk
Food & Beverage - Pizza · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
2
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Indiana
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (2,872 units, -1.8% YoY) suggests system contraction and potential market saturation or franchisee satisfaction issues
- 02MEDNo average revenue or net income disclosed (no Item 19) prevents validation of earnings claims and ROI projections
- 03MINORUnprotected territory creates direct competition risk — multiple franchisees can operate in same area, cannibalizing sales
- 04MINORHigh royalty floor ($175/week minimum = $9,100 annually) creates fixed cost burden even during low-sales periods
- 05MINORWide investment range ($32.1K–$227.7K) suggests highly variable unit economics; unclear what drives 7x difference
- 06MINORLow franchise fee ($7,500) relative to investment range signals potential for understated total startup costs or hidden fees
- 07MEDStagnant small unit base (2,872) with negative growth indicates limited brand momentum and scaling challenges
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.