FranchiseVerdict
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D72/100FDD 2025

Papa Ray's Pizza & Wings — Litigation & Risk

Food & Beverage - Full Service · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$125K
Avg loan size
$125K
Participating lenders
1

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
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
Illinois
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  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 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.