Papa Ray's Pizza & WingsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Papa Ray's Pizza & Wings franchise requires a total initial investment of $214K – $464K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $214K – $464K
- 11th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 5
- 13th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system contracted 33% year-over-year. Investigate why units are closing.
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.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- 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
- Ultimate parent
- None
- CEO title
- Member
- John Rayyan
- CEO experience
- 13 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- IL
- HQ
- 8 McGlashen Drive, South Barrington, IL 60010
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $212K
- vs $199K prior year
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
- Headquarters
- IL
- Founded
- 2012
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Travel and Living Costs while Training | $2K | $10K | |
| Lease Security Deposit and Rent (1st 3 months) | $4K | $16K | |
| Leasehold Improvements | $30K | $60K | |
| Equipment/Signage/Furniture/Fixtures | $58K | $144K | |
| POS Computer Systems | $12K | $25K | |
| Initial Inventory and Supplies | $10K | $19K | |
| Utility Deposits | $2K | $4K | |
| Insurance | $900 | $16K | |
| Miscellaneous Pre-Opening Expenses | $10K | $30K | |
| Grand Opening Advertising | $15K | $30K | |
| Additional Funds (1st 3 months) | $40K | $80K | |
| Total initial investment | $214K | $464K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $214K – $464K
- Better than avg vs category
- Liquid capital req'd
- $40K – $80K
- Better than avg vs category
- Franchise fee
- $15K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $200 |
| Transfer fee | $9K |
| Renewal fee | $3K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Papa Ray's Pizza & Wings Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- 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
3-year detail · Item 20
- Transfers (3yr)
- 1
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 20.0%
- Owners selling to other franchisees
- Continuity rate
- 66.7%
- Units that stayed open
- Ceased ops
- 40.0%
- Units that stopped operating
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)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $125K
- Median loan
- $125K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Papa Ray's Pizza & Wings's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 100 / 100 rating
- 01MEDSystem collapse: 5 units represents 33.3% unit decline year-over-year—indicates franchisees are exiting
- 02MINORNo financial disclosure: Franchisor refuses to disclose average unit volumes or net income in Item 19—prevents ROI validation
- 03HIGHGoing concern status: 'False' indicates franchisor may have solvency or operational sustainability issues
- 04MINORWide investment range: $213K-$464K spread (117% variance) suggests inconsistent unit economics and poor cost controls
- 05MEDWeak royalty recovery: 5% royalty on undisclosed revenue means franchisor lacks incentive to support struggling franchisees
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 192 hrs
- Training location
- franchisee location
- Field support
- 24 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- POS system
- Microworks Prism
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Microworks Prism
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Papa Ray's Pizza & Wings · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Papa Ray's Pizza & Wings franchise?
The total investment to open a Papa Ray's Pizza & Wings franchise ranges from $214K – $464K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Papa Ray's Pizza & Wings franchise owners earn?
Papa Ray's Pizza & Wings does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Papa Ray's Pizza & Wings's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Papa Ray's Pizza & Wings (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Papa Ray's Pizza & Wings franchise locations are there?
As of their most recent FDD filing, Papa Ray's Pizza & Wings has 5 total units in the United States, including 4 franchised units and 1 company-owned units.
Is Papa Ray's Pizza & Wings a good franchise to buy?
FranchiseVerdict rates Papa Ray's Pizza & Wings as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.