FranchiseVerdict
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B63/100FDD 2023

Papa Saverio’s — 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
63 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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
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 63/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial disclosure (revenue and net income not disclosed) — impossible to validate ROI claims
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial instability or structural issues with franchisor
  3. 03MINORSlow unit growth of only 7.1% YoY with just 15 total units suggests weak system momentum and franchisee recruitment challenges
  4. 04MEDWide investment range ($143.7K–$1.24M) with no disclosed profitability metrics creates unpredictable breakeven scenarios
  5. 05MED5% royalty on undisclosed revenue model prevents accurate cash flow projections for franchisees
  6. 06MINORMinimal franchisee base (15 units) limits peer network for support and validation; high failure risk if even 2-3 units close

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.