Patsy’s Pizzeria Franchise Cost, Revenue & Review 2026
- Investment
- $399K – $766K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Patsy's Pizzeria is a New York pizza franchise serving classic coal-oven-style pizza and Italian dishes. Franchisees run the restaurants, managing food prep, staffing, and dine-in and takeout.
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $399K – $766K
- 19th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 25th pct Service Resta…
- Units
- 11
- 14th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $399K – $766K including a $75K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (1 opened, 2 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Patsy's Pizzeria Franchise Corp.
- Ultimate parent
- I.O.B. Realty, Inc.
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- I.O.B. Realty, Inc. / Patsy's, Inc.
- Prior franchisor entity
- 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
- $340K
- vs $323K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Isa Brija
- Headquarters
- NY
- Founded
- 2014
- FDD year
- 2025
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 14% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 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
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $70K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Top 40% of category vs category
- Royalty
- 6.0%
- 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 |
| Inventory (initial) | $15K – $30K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Patsy’s Pizzeria makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Patsy’s Pizzeria unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Full-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -28.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Patsy’s Pizzeria Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 1
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 18.2%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 91%
- vs corporate-owned
- Net growth (3-yr)
- -28.6%
- Net unit change over 3 years
- 3-yr CAGR
- -28.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 1
- 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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two past trademark disputes: (1) I.O.B. Realty, Inc. v. Patsy's Brand, Inc. (SDNY, dismissed 2021); (2) Patsy's Italian Restaurant, Inc. v. Anthony Banas et al. (EDNY, permanent injunction, no longer active). No current litigation.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Silverstein, Cottone & Mulshine LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2023 (year ended December 31, 2023) is the most recent audited year in Exhibit B; total revenue of $340,072 consists almost entirely of franchise fees plus negligible interest income.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- 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 39 / 100 verdict
- 01MINORDeclining unit count (-9.1% YoY) indicates system contraction and potential franchisee dissatisfaction
- 02MINORTwo active trademark infringement cases create legal/operational uncertainty and brand protection risk
- 03HIGHCriminal conviction of President (1977, armed robbery) raises governance and credibility concerns
- 04MEDNo disclosed average revenue or net income (missing Item 19 data) prevents ROI validation and financial transparency
- 05MINORHigh investment range ($399K-$765K) combined with 6% royalty creates significant ongoing cost burden with no proven returns
- 06MED11-unit system is extremely small with limited support infrastructure and economy of scale
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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 |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 18 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 2 |
View Item 3 litigation summary
Two past trademark disputes: (1) I.O.B. Realty, Inc. v. Patsy's Brand, Inc. (SDNY, dismissed 2021); (2) Patsy's Italian Restaurant, Inc. v. Anthony Banas et al. (EDNY, permanent injunction, no longer active). No current litigation.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 48 hrs
- Training location
- Patsy's Pizzeria 2287-91 1st Avenue, New York, NY 10035
- Ongoing training
- Required
- Time to open
- 5 mo
- From signing to launch
- Site selection
- franchisee_with_approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Patsy’s Pizzeria?
Patsy’s Pizzeria is franchised by Patsy's Pizzeria Franchise Corp.. The ultimate parent named in the FDD is I.O.B. Realty, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Patsy’s Pizzeria FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Patsy’s Pizzeria FDD and qualifies whose outlets they describe.
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 C-grade franchise with a verdict score of 39 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.