Pizza Factory Franchise Cost, Revenue & Review 2026
- Investment
- $318K – $740K
- Disclosed sales
- $917K
- gross sales, not profit
- SBA charge-off
- 26.7%
- on 39 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Pizza Factory is a family-friendly pizzeria franchise serving fresh-dough pizzas, pasta, and sandwiches for dine-in, takeout, and delivery. Franchisees run restaurants managing food prep, service, and staffing, often in smaller markets.
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 26.7% charge-off rate across 39 loans[1]. 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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $318K – $740K
- 52nd pct Service Resta…
- Avg gross sales
- $917K
- Incl. company outlets16th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 111
- 78th pct Service Resta…
- SBA charge-off
- 26.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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 $318K – $740K including a $25K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $917K/year (median $834K) (includes company-owned outlets). Note: this is gross profit, not take-home income.
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 26.7% across 39 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +7 franchised outlets in the latest year (10 opened, 3 closed); 6 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Pizza Factory Franchising LLC
- Parent company
- Pizza Factory HoldCo LLC
- FDD Item 1, page 10 of the 2025 FDD
- Ultimate parent
- Wonder Franchises, LLC
- FDD Item 1, page 10 of the 2025 FDD
- Predecessor
- Pizza Factory, Inc.
- Prior franchisor entity
- CEO title
- CEO
- Mary Jane Riva
- 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.
Same owner · FDD Item 1, page 10
1 other brand on this site name Wonder Franchises, LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Mary Jane Riva
- Headquarters
- CA
- Founded
- 1982
- FDD year
- 2025
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 9% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown9 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $318K – $740K
- Middle of category vs category
- Liquid capital req'd
- $35K – $60K
- Bottom third — review vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of net sales |
| Marketing / ad fund | 3.0% of net sales |
| Technology fee | $200 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $10K – $15K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Includes company-owned outlets
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Pizza Factory until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$577K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Pizza Factory 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Includes company-owned outlets
- Avg gross sales
- $917K
- Per unit, per year
- Median gross sales
- $834K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 94 outlets
- vs category median 19 · large
- Range (low → high)
- $138K→$2.3MCited, not corroborated — printed on page 56 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2023
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $917K/year in gross sales. Revenue-to-investment ratio: 1.7x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 10.0% CAGR over 3 years across 111 units — operators are staying and new ones are joining.
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 Quick-Service Restaurants medians
How Pizza Factory Compares
Category median of published Quick-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
- 111
- Opened
- 10
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +10.0%
- Net unit change over 3 years
- 3-yr CAGR
- +10.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 0
- Transferred
- 9
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 6
- 0.05 per open outlet · Item 20 Table 5
- Projected new
- 21
- Franchisor's next-year forecast
- Termination rate
- 1.0%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 7 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.
7
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.
- Total loans
- 39
- Loan volume
- $7.0M
- Median loan
- $170K
- 50th percentile
- Charge-off rate
- 26.7%
- on 39 loans · 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
- Typical loan rate
- 7.3%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand above franchise avg ↑
- Jobs supported
- 480
- 6.9 per loan
- Lender concentration
- 13%
- top lender's share
Borrower mix: 54% went to startups / new businesses, 46% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 21.5% vs 25.0% for independents — franchising is associated with 14% lower SBA default risk in this category.
Vintage analysis
Pizza Factory charge-off rate by loan vintage
Top lenders financing Pizza Factory franchisees
Showing 3 of 24 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Pizza Factory from SBA 7(a) FOIA data.
- Principal loss rate
- 11.1%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 7.25%
- Avg chargeoff amount
- $97K
- Lender concentration
- 12.8%
- Job velocity
- 6.9 per $100K
- NAICS benchmark
- 15.7%
- NAICS 722211
- Jobs supported
- 480
Top SBA lendersTop lender holds 13% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Plumas Bank | 5 | $1.3M | 0.0% |
| 2 | Merchants Bank, National Association | 3 | $230K | 0.0% |
| 3 | Zions Bank, A Division of | 2 | $175K | 0.0% |
| 4 | Bank of America, National Association | 2 | $35K | 50.0% |
| 5 | Woodforest National Bank | 2 | $770K | 50.0% |
| 6 | Community West Bank | 2 | $245K | 50.0% |
| 7 | Banner Bank | 2 | $290K | 50.0% |
| 8 | Wells Fargo Bank National Association | 2 | $530K | 0.0% |
| 9 | Citizens Bank | 2 | $362K | N/A |
| 10 | BMO Bank National Association | 2 | $350K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 17 | 5 | 41.7% |
| NVNevada | 5 | 0 | 0.0% |
| WAWashington | 5 | 1 | 25.0% |
| MNMinnesota | 3 | 0 | 0.0% |
| TXTexas | 3 | 1 | 33.3% |
| GAGeorgia | 2 | 0 | -- |
| IDIdaho | 2 | 0 | 0.0% |
| ILIllinois | 1 | 1 | 100.0% |
| SDSouth Dakota | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 26.7% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 26.7% — 66% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Pizza Factory, Inc. v. Willow Glen Pizza Factory, Inc. (predecessor case): breach of contract and breach of guaranty; cross-complaint alleged misrepresentation. Settled February 2021, predecessor agreed to pay up to $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)
Item 21 audited statements are for the franchisor Pizza Factory Franchising LLC, a Delaware LLC formed Dec 6, 2024 (wholly-owned subsidiary of Pizza Factory HoldCo LLC). Only an audited balance sheet as of January 2, 2025 is provided; the entity had not had significant operations and had executed no franchise agreements, so there is no income statement (no revenue or net income). Balance sheet: Cash/Total Assets $65,000; Liabilities $0; Member's equity $65,000 (assets = liabilities + equity reconciles). Figures in whole US dollars. Auditor firm name did not appear in the extracted text (signed New York, NY, Jan 29, 2025).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 40 / 100 verdict
- 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
- 03MINORNet 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
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 |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | California (city closest to headquarters) for mediation; courts in California |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 1 |
View Item 3 litigation summary
Pizza Factory, Inc. v. Willow Glen Pizza Factory, Inc. (predecessor case): breach of contract and breach of guaranty; cross-complaint alleged misrepresentation. Settled February 2021, predecessor agreed to pay up to $65,000.
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 202 hrs
- Training location
- Fresno, Placerville, Oakhurst, Gilroy California
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Speedline
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Speedline
Item 20 · call current owners
Franchisee Contacts
12 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 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. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Pizza Factory?
Pizza Factory is franchised by Pizza Factory Franchising LLC. Its parent company is Pizza Factory HoldCo LLC. The ultimate parent named in the FDD is Wonder Franchises, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Pizza Factory 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 Pizza Factory FDD and qualifies whose outlets they describe.
What is Pizza Factory's franchise failure rate?
Based on SBA 7(a) loan data, Pizza Factory has a charge-off rate of 26.7% across 39 loans, meaning 26.7% 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 110 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 C-grade franchise with a verdict score of 40 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.
For franchisors
Are you the franchisor?
If you represent Pizza Factory, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.