FranchiseVerdict
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D73/100FDD 2025

Patsy’s Pizzeria — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
73 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

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

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
New York
State whose law governs disputes — relevant if you're not based there

What drove the 73/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-9.1% YoY) indicates system contraction and potential franchisee dissatisfaction
  2. 02HIGHGoing concern status is FALSE, suggesting potential financial instability or viability questions at corporate level
  3. 03MINORTwo active trademark infringement cases create legal/operational uncertainty and brand protection risk
  4. 04HIGHCriminal conviction of President (1977, armed robbery) raises governance and credibility concerns
  5. 05MEDNo disclosed average revenue or net income (missing Item 19 data) prevents ROI validation and financial transparency
  6. 06MINORHigh investment range ($399K-$765K) combined with 6% royalty creates significant ongoing cost burden with no proven returns
  7. 07MED11-unit system is extremely small with limited support infrastructure and economy of scale

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.