Patsy’s PizzeriaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Patsy’s Pizzeria franchise requires a total initial investment of $399K – $766K, including a $75K franchise fee and an ongoing 6.0% 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
- $399K – $766K
- 27th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 11
- 22nd 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
Franchising since 1995. Systems this mature have refined operations and brand recognition.
The system contracted 9% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $399K – $766K including a $75K franchise fee, 6.0% 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 92/100.
- 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
- Patsy’s Pizzeria Franchise Corp.
- Ultimate parent
- I.O.B. Realty, Inc.
- CEO title
- President and Director
- Isa Brija
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NY
- HQ
- 2287-91 First Avenue, New York, New York 10035
- Auditor
- Silverstein, Cottone & Mulshine LLP
- Audited financials
- Franchisor revenue
- $323K
- vs $285K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate independent Patsy's-branded pizzeria locations, handling day-to-day management of food preparation, customer service, inventory, and staff scheduling. They pay 6% of gross revenues as ongoing royalties while utilizing the Patsy's brand name, recipes, and operational systems within their protected territory. Revenue generation depends entirely on local foot traffic and market execution given corporate's failure to disclose system-wide financial performance benchmarks.
- CEO
- Isa Brija
- Headquarters
- NY
- Founded
- 1933
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $75K | $75K | |
| Pre-Opening Training expensesnot refundable | $3K | $10K | |
| Real property (Pre-paid rent, if leased) | $11K | $75K | |
| Construction and Leasehold Improvementsnot refundable | $150K | $300K | |
| Equipment, Furniture and Fixturesnot refundable | $50K | $110K | |
| Computer and Point of Sale systemsnot refundable | $2K | $7K | |
| Inventory to begin operatingnot refundable | $15K | $30K | |
| Utility deposits and permitsnot refundable | $5K | $11K | |
| Professional Feesnot refundable | $5K | $15K | |
| Signsnot refundable | $5K | $18K | |
| Architect/Engineeringnot refundable | $15K | $20K | |
| Grand Opening Advertisingnot refundable | $3K | $3K | |
| Pre-Opening Labornot refundable | $3K | $8K | |
| Insurancenot refundable | $3K | $6K | |
| Additional funds (initial period - 3 months)not refundable | $50K | $70K | |
| Total initial investment | $393K | $756K |
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
- $399K – $766K
- Better than avg vs category
- Liquid capital req'd
- $50K – $70K
- Better than avg vs category
- Franchise fee
- $75K – $75K
- Near category avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $38K |
| Total fee load | 8.0% 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 Patsy’s Pizzeria Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 1
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.1%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 91%
- vs corporate-owned
- Net growth (yr3)
- -9.1%
- Net unit change last year
- 3-yr CAGR
- -28.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 5
- Franchisor's next-year forecast
- Termination rate
- 9.1%
- Franchisor-initiated terminations
- Ceased ops
- 18.2%
- 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Patsy's Pizzeria presents HIGH RISK due to shrinking franchise network, undisclosed financials, active trademark litigation, corporate going concern issues, and leadership credibility concerns that substantially impair franchisee ROI visibility and brand viability.
Litigation (Item 3)
Two trademark litigation matters involving the 'PATSY'S' and 'PATSY'S PIZZERIA' marks: (1) I.O.B. Realty, Inc. v. Patsy's Brand, Inc. (SDNY 16-cv-7682) - concluded September 8, 2021 with judgment for defendant; appeal to Second Circuit resulted in case dismissal with prejudice finding no likelihood of confusion. (2) Patsy's Italian Restaurant, Inc. v. Anthony Banas et al. (EDNY 06-cv-05857 and 06-cv-00729, consolidated) - no longer active; involved trademark infringement and unfair competition claims. Both cases are concluded and no longer active.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Silverstein, Cottone & Mulshine LLP
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 92 / 100 rating
- 01MINORDeclining unit count (-9.1% YoY) indicates system contraction and potential franchisee dissatisfaction
- 02HIGHGoing concern status is FALSE, suggesting potential financial instability or viability questions at corporate level
- 03MINORTwo active trademark infringement cases create legal/operational uncertainty and brand protection risk
- 04HIGHCriminal conviction of President (1977, armed robbery) raises governance and credibility concerns
- 05MEDNo disclosed average revenue or net income (missing Item 19 data) prevents ROI validation and financial transparency
- 06MINORHigh investment range ($399K-$765K) combined with 6% royalty creates significant ongoing cost burden with no proven returns
- 07MED11-unit system is extremely small with limited support infrastructure and economy of scale
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 |
| Territory type | Geographic area |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 3 |
View Item 3 litigation summary
Two trademark litigation matters involving the 'PATSY'S' and 'PATSY'S PIZZERIA' marks: (1) I.O.B. Realty, Inc. v. Patsy's Brand, Inc. (SDNY 16-cv-7682) - concluded September 8, 2021 with judgment for defendant; appeal to Second Circuit resulted in case dismissal with prejudice finding no likelihood of confusion. (2) Patsy's Italian Restaurant, Inc. v. Anthony Banas et al. (EDNY 06-cv-05857 and 06-cv-00729, consolidated) - no longer active; involved trademark infringement and unfair competition claims. Both cases are concluded and no longer active.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 48 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
11 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Patsy’s Pizzeria · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Patsy’s Pizzeria franchise?
The total investment to open a Patsy’s Pizzeria franchise ranges from $399K – $766K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Patsy’s Pizzeria franchise owners earn?
Patsy’s Pizzeria 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 Patsy’s Pizzeria's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Patsy’s Pizzeria (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 Patsy’s Pizzeria franchise locations are there?
As of their most recent FDD filing, Patsy’s Pizzeria has 11 total units in the United States, including 10 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is Patsy’s Pizzeria a good franchise to buy?
FranchiseVerdict rates Patsy’s Pizzeria as a F-grade franchise with a risk score of 92 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.