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F85/100FDD 2024

Pizza Boli's — Litigation & Risk

Food & Beverage - Pizza · FDD Items 3, 4 & 5

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Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
85 / 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
1
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
$90K
Avg loan size
$90K
Participating lenders
1

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
1 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
Maryland
State whose law governs disputes — relevant if you're not based there

What drove the 85/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern status is FALSE — indicates potential financial distress or accounting irregularities at corporate level
  2. 02MINORActive regulatory investigation by Virginia Securities Division for unregistered franchise offers suggests systematic compliance failures
  3. 03MINORJuly 2024 Maryland Consent Order requiring rescission offers indicates recent, material securities violations and potential forced refunds to franchisees
  4. 04MINORSettled shareholder derivative suit alleging misappropriated funds by President demonstrates governance failures and potential misuse of franchisee capital
  5. 05MINORMultiple breach of contract lawsuits against former franchisees suggests either corporate non-performance or pattern of franchise terminations
  6. 06MEDZero financial transparency — no Item 19 (average unit volumes/net income) disclosed, preventing ROI validation
  7. 07MINORNo territory protection — franchisees compete directly with corporate and other franchisees in same market
  8. 08MINOR84 units with unknown growth trajectory — no disclosure of unit closures, transfers, or system contraction rate
  9. 09MINORWide investment range ($155,900–$458,950) suggests undefined costs and potential hidden expenses or upselling
  10. 10MINORRoyalty structure allows $4,800 fixed fee cap, potentially incentivizing corporate to under-report sales or shift franchisees to fixed fees

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.