FranchiseVerdict
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F79/100FDD 2025

Noble Roman's Pizza — Litigation & Risk

Food & Beverage - Pizza · FDD Items 3, 4 & 5

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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
79 / 100
FranchiseVerdict composite
Rating
AVOID
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
34
Government-backed loans issued
Default rate
77.8%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
21 loans
Loans charged off or defaulted
Total loan volume
$10.7M
Avg loan size
$315K
Participating lenders
14

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 79/100 rating

Risk Score Breakdown

  1. 01MEDCatastrophic unit decline of 85.6% YoY (414 units remaining) indicates systemic failure or mass exit
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and suggests poor performance
  3. 03HIGHGoing concern status FALSE indicates franchisor may lack financial stability to support franchisees
  4. 04MINORUnprotected territory creates cannibalization risk and direct competition from other franchisees
  5. 05MEDHigh royalty floor ($175/week minimum = $9,100/year) on undisclosed revenue creates break-even risk
  6. 06MINORWide investment range ($32.1K–$141.7K) with no performance benchmarks suggests inconsistent unit economics
  7. 07MINORFranchise fee ($7,500) is low relative to royalty burden, indicating franchisor prioritizes recurring fees over franchisee success

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.