Bottom line
- Total investment $380K – $550K including a $30K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $893K/year (median $934K).
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- System contracting at -58.2% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Oath Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Oath Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$536K
on $2.7M purchase
Total debt
$2.1M
SBA $1.3M + senior + seller note
Overview
About
Oath Pizza franchisees operate fast-casual or quick-service pizza restaurants, managing daily operations including food preparation, customer service, staffing, and inventory. They are responsible for local marketing, sales execution, and maintaining brand standards while paying 5.5% of gross revenue to the franchisor.
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 · 6 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Oath Pizza exhibits critical distress signals: 48% unit decline, going concern doubts, undisclosed profitability, and high investment requirements—indicating a contracting system with questionable long-term viability.
Score breakdown · what drove the 72 / 100 rating
- 01MINORUnit count collapsed 47.7% year-over-year (30 units remaining) indicating severe system contraction and franchisee failures
- 02HIGHGoing Concern status is FALSE, suggesting auditor doubts about franchisor's financial viability and ability to support franchise system
- 03MEDNet income not disclosed despite $893k average unit revenue, preventing ROI analysis and raising profitability concerns
- 04MINORHigh initial investment ($380k-$550k) paired with 5.5% royalty creates significant capital risk with unclear payback timeline
- 05MEDDramatic unit decline suggests widespread franchisee dissatisfaction, operational challenges, or market rejection
- 06MINORMinimal franchise fee ($30k) may indicate franchisor financial stress or inability to attract quality franchisees
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
7 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Oath Pizza · FDD (2023) PDF