FranchiseVerdict
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A53/100FDD 2025

Oggi’s Pizza & Brewing Company — 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
53 / 100
FranchiseVerdict composite
Rating
STRONG
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
13
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
Required
Disputes resolved outside court — limits your legal options
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 53/100 rating

Risk Score Breakdown

  1. 01MEDSystem contracting significantly: -6.7% YoY unit decline (16 units) indicates shrinking franchise network and potential model challenges
  2. 02MINORNo net income disclosure in Item 19: Inability to assess actual profitability despite $2.39M avg revenue; high investment ($479K-$1.99M) with unknown returns
  3. 03MINORWide investment range ($1.5M spread) suggests high variability in startup costs and unclear path to profitability across locations
  4. 04HIGHNo going concern statement: Absence of franchisor's affirmation raises questions about system stability and long-term viability
  5. 05MEDDeclining unit count with 20-year term lock-in: Franchisees in shrinking system face limited exit options and potential support deterioration

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.