FranchiseVerdict
Papa Ray's Pizza & Wings logo
FV-01883·CAUTIONExcellent81

Papa Ray's Pizza & Wings

Food & Beverage - Full ServiceFranchising since 2013Website
Investment
$214K – $464K
21st pct Full Service
Avg revenue
57th pct Full Service
Royalty
5.0%
15th pct Full Service
Units
5
26th pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $214K – $464K including a $30K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
RAYYAN PIZZA FRANCHISE LLC
Incorporated in
Illinois
HQ
8 McGlashen Drive, South Barrington, IL 60010
Auditor
Muhammad Zubairy, CPA PC
Audited financials
Franchisor revenue
$212K
vs $199K prior year

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 Papa Ray's Pizza & Wings unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $214K–$464K
Working capital
$
FDD reports $40K–$80K

Unlevered ROIC · per unit

30%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$120K
EBITDA margin
16.0%
Total invested
$399K
Payback
40 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate fast-casual pizza and wings restaurants, managing food preparation, counter/delivery service, inventory, staff scheduling, and local marketing. Daily operations involve managing 8-15 employees, maintaining food safety/health compliance, and handling 40-100 customer transactions per day across dine-in, carryout, and delivery channels.

CEO
John Rayyan
Founded
2012
FDD year
2025
States available
2

Item 7 · what it costs

The Vitals

Total investment
$214K – $464K
All-in to open one unit
Liquid capital
$40K – $80K
Cash you must have on hand
Franchise fee
$30K
Royalty
5.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
5
Opened
0
Last reporting year
Closed
2
Turnover rate
40.0%
Company-owned
1
Corporate units in the system
% franchised
80%
vs corporate-owned
Net growth (yr3)
-33.3%
Net unit change last year
3-yr CAGR
-33.3%
Compounded over last 3 years
2023
4-2
Franchised units
2024
6
Franchised units
2025
6
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 2 states reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

2

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

72
Risk · 0-100
CAUTION72 / 100

Papa Ray's exhibits critical systemic decline with a collapsing unit base, undisclosed financials preventing ROI assessment, and potential going concern issues—representing high risk for new franchisees.

Score breakdown · what drove the 72 / 100 rating

  1. 01MEDSystem collapse: 5 units represents 33.3% unit decline year-over-year—indicates franchisees are exiting
  2. 02MINORNo financial disclosure: Franchisor refuses to disclose average unit volumes or net income in Item 19—prevents ROI validation
  3. 03HIGHGoing concern status: 'False' indicates franchisor may have solvency or operational sustainability issues
  4. 04MINORWide investment range: $213K-$464K spread (117% variance) suggests inconsistent unit economics and poor cost controls
  5. 05MEDWeak royalty recovery: 5% royalty on undisclosed revenue means franchisor lacks incentive to support struggling franchisees
  6. 06MINORMinimal franchise fee relative to startup: $30K fee on $213K-$464K investment signals low barrier to entry and high franchisee risk absorption

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Illinois

Item 11

Training & Operations

Classroom training
8 hrs
On-the-job training
192 hrs
POS system
Microworks Prism
Operating tech stack

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

2 numbers

Locked
(979) 637-••••
Adnan Qazi QAA Foods LLC Palatine,
IL
(630) 463-••••
Chintan Patel and Hitesh Patel JAI MAA KRUPT LLC Aurora,
IL

One-time purchase · CSV download · Validation questions included

FDD download

Papa Ray's Pizza & Wings · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above