Pizza FactoryFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Pizza Factory franchise requires a total initial investment of $318K – $740K, including a $25K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $917K[2]. SBA 7(a) loans show a 20.5% charge-off rate across 39 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $318K – $740K
- 62nd pct Service Resta…
- Avg gross sales
- $917K
- 31st pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 111
- 75th pct Service Resta…
- SBA default
- 20.5%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
20.5% of SBA loans charged off across 39 loans, above the 16% franchise average.
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
41% cash-on-cash return (based on Gross Margin). Above the 20% threshold most investors target.
Bottom line
- Total investment $318K – $740K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $917K/year (median $834K), with an estimated 41% cash-on-cash return (based on Gross Margin). Note: this is gross profit, not take-home income.
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 20.5% across 39 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- PIZZA FACTORY FRANCHISING LLC
- Parent company
- Pizza Factory HoldCo LLC
- Predecessor
- is Pizza Factory
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 49430 ROAD 426, SUITE D, PO BOX 989, OAKHURST, CALIFORNIA, 93644
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Pizza Factory franchisees operate casual pizzerias producing fresh dough, specialty pizzas, and Italian cuisine for dine-in, takeout, and delivery customers. Day-to-day operations include managing kitchen staff, maintaining quality standards, inventory management, and local marketing to build customer loyalty in their protected territory.
- CEO
- Mary Jane Riva
- Founded
- 2024
- FDD year
- 2025
- States available
- 7
FDD Item 7 · 2025 filing · 9 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $15K | $25K | |
| Wages, Travel and Living Expenses During Trainingnot refundable | $4K | $8K | |
| Real Estate and Improvements | $95K | $400K | |
| Signage | $10K | $20K | |
| Equipment and Fixtures | $137K | $185K | |
| Deposits, License Fees & Other Prepaid Expenses | $10K | $25K | |
| Opening Inventory / Incidentals | $10K | $15K | |
| Advertising - First 3 months | $2K | $2K | |
| Additional Funds - 3 months | $35K | $60K | |
| Total initial investment | $318K | $740K |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$128K
14.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $318K – $740K
- Near category avg vs category
- Liquid capital req'd
- $35K – $60K
- Below avg, review vs category
- Franchise fee
- $15K – $25K
- Better than avg vs category
- Royalty
- 5.0%
- Net Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 2.5 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $917K
- Per unit, per year
- Median gross sales
- $834K
- Avg gross margin
- $214K
- Reported as Gross Margin in FDD Item 19
- Cash-on-cash
- 40.5%
- Based on Gross Margin / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 94 units
- vs category median 28 · large
- Range (low → high)
- $138K→$2.3M
- Cohort dispersion (min → max)
- Quartile band
- $568K→$1.4M
- Bottom 25% → top 25%
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Pizza Factory Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 111
- Opened
- 10
- Last reporting year
- Closed
- 3
- Turnover rate
- 2.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- +6.8%
- Net unit change last year
- 3-yr CAGR
- +10.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 7
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 9
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 1.0%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 39
- Loan volume
- $7.0M
- Median loan
- $170K
- 50th percentile
- Charge-off rate
- 20.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 73.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 24
- Defaults
- 8
Vintage analysis
Pizza Factory charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Pizza Factory's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 18-year lending trend
Instant access. No subscription.
A 20.5% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pizza Factory presents moderate-to-cautionary risk: litigation history and lack of financial transparency are concerning, but stable unit count, reasonable royalty rate, and protected territories partially offset these issues.
Litigation (Item 3)
1 case reference(s): 0 pending, 2 settled.
Largest disclosed settlement: $65,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 55 / 100 rating
- 01HIGHLitigation history: 2019 breach of contract lawsuit with fraud/misrepresentation allegations settled for $65,000 in 2021 raises concerns about franchisor business practices and relationship management
- 02MINORSlow unit growth: 6.8% YoY growth is modest for a pizza franchise and suggests difficulty recruiting/retaining franchisees or market saturation
- 03MINORNo Item 19 financial disclosure: Franchisor does not provide average unit volume data to prospective franchisees, limiting transparency on revenue claims
- 04MINORWide investment range: $318,000-$740,000 spread (133% variance) suggests highly variable startup costs and unclear requirements for different unit types
- 05MINORNet income margin concern: $214,430 net income on $916,995 revenue (23.4% margin) needs verification—validate if this is representative and how 5% royalty impacts bottom line
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 |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 2 settled.
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 237 hrs
- Training location
- On-site and off-site
- Franchisor financing
- Offered
- Item 10
- POS system
- Speedline
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Speedline
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pizza Factory · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pizza Factory franchise?
The total investment to open a Pizza Factory franchise ranges from $318K – $740K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pizza Factory franchise owners earn?
According to Item 19 of the Pizza Factory FDD, the average gross sales per unit is $917K. The median is $834K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Pizza Factory's franchise failure rate?
Based on SBA 7(a) loan data, Pizza Factory has a charge-off rate of 20.5% across 39 loans, meaning 20.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Pizza Factory franchise locations are there?
As of their most recent FDD filing, Pizza Factory has 111 total units in the United States, including 100 franchised units and 1 company-owned units. 10 new units were opened in the latest reporting year.
Is Pizza Factory a good franchise to buy?
FranchiseVerdict rates Pizza Factory as a B-grade franchise with a risk score of 55 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.