F92/100FDD 2025
Perri's Pizzeria — Litigation & Risk
Food & Beverage - Pizza · FDD Items 3, 4 & 5
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
92 / 100
FranchiseVerdict composite
Rating
AVOID
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
6
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
$725K
Avg loan size
$121K
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
Non-compete
5 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 92/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates material uncertainty about franchisor's ability to continue operations
- 02MEDNo Item 19 financial performance data disclosed — cannot validate average unit economics or ROI claims
- 03MINOROnly 9 units system-wide with unknown growth trajectory — extremely small and potentially stagnant network
- 04MINORUnusual royalty structure (price of 8 cheese pizza slices × 1.25) — difficult to forecast, creates payment unpredictability
- 05MINORWide investment range ($267K-$734K) without clear cost drivers — suggests inconsistent unit economics or undefined buildout standards
- 06MINORNo average revenue or net income disclosure — red flag for underperforming or inconsistent unit profitability
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.