Pizza GuysFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Pizza Guys franchise requires a total initial investment of $216K – $477K, including a $25K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $964K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $216K – $477K
- 36th pct Service Resta…
- Avg gross sales
- $964K
- 33rd pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 90
- 73rd pct Service Resta…
- SBA default
- 0.0%
- 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
Franchising since 1995. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $216K – $477K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $964K/year (median $932K).
- Verdict A (Top Quintile) with a risk score of 29/100.
- System contracting at -11.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Pizza Guys Franchises, Inc.
- CEO title
- President
- Shahpour M. Nejad
- CEO experience
- 1995 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 2731 Citrus Road, Ste. A-1, Rancho Cordova, California 95742
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $5.1M
- vs $4.9M prior year
Affiliated brands
- RSM
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Pizza Guys franchisees operate quick-service pizza restaurants focused on carryout and delivery, managing point-of-sale systems, food preparation, inventory, staffing, and local marketing. Day-to-day responsibilities include food quality control, customer service, staff scheduling, and cash flow management in a competitive QSR segment with thin margins.
- CEO
- Shahpour M. Nejad
- Headquarters
- CA
- Founded
- 1995
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $25K | $25K | |
| Grand Opening Periodnot refundable | $8K | $8K | |
| Store Premises Lease Advance Rent & Depositnot refundable | $10K | $13K | |
| Leasehold Improvementsnot refundable | $35K | $237K | |
| DataCommnot refundable | $19K | $23K | |
| Design & Permittingnot refundable | $15K | $23K | |
| Licensing Feesnot refundable | $400 | $400 | |
| Equipment & Furnishingsnot refundable | $52K | $85K | |
| Freight & Taxesnot refundable | $5K | $10K | |
| Signagenot refundable | $6K | $6K | |
| Insurancenot refundable | $2K | $5K | |
| Miscellaneous Opening Costsnot refundable | $3K | $6K | |
| Opening Inventorynot refundable | $7K | $8K | |
| Additional Funds – 3 Monthsnot refundable | $30K | $30K | |
| Development Fee (3 to 5 Locations)not refundable | $55K | $85K | |
| Total initial investment | $271K | $562K |
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
$125K
13.0% margin
Unlevered ROIC
33%
EBITDA / total invested capital
Payback
3.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $216K – $477K
- Better than avg vs category
- Liquid capital req'd
- $30K – $30K
- Below avg, review vs category
- Franchise fee
- $21K – $25K
- Better than avg vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Training fee | $100 |
| Transfer fee | $13K |
| Renewal fee | $13K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $964K
- Per unit, per year
- Median gross sales
- $932K
- Item 19 type
- net_sales
- Sample size
- 87 units
- vs category median 28 · large
- Range (low → high)
- $325K→$1.7M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Pizza Guys Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 90
- Opened
- 8
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Net growth (yr3)
- +2.6%
- Net unit change last year
- 3-yr CAGR
- -11.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Transfers (3yr)
- 2
- Projected new
- 15
- Franchisor's next-year forecast
- Transfer rate
- 2.2%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 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.
2
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $1.6M
- Median loan
- $283K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Pizza Guys's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pizza Guys presents a CAUTION-level risk: declining unit count, missing profitability disclosures, and high capital requirements create uncertainty around franchisee ROI despite moderate average revenue figures.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $25,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 29 / 100 rating
- 01MEDUnit count declined 2.6% YoY (90 units), indicating system contraction and potential market saturation or operational challenges
- 02MEDNet income not disclosed in FDD Item 19 — unable to validate actual profitability claims despite $963k average revenue
- 03MINORHigh initial investment range ($215.5k–$476.9k) with no transparent earnings data creates ROI uncertainty and repayment risk
- 04MINOR5% royalty on net sales applies to a shrinking franchisee base, creating pressure on franchisor support quality
- 05MINOR10-year term is industry-standard but combined with declining units suggests franchisees may not be renewing or expanding
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 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 5 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Sacramento, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 56 hrs
- Training location
- On-site and corporate
- Time to open
- 6 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- Adora
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Adora
Item 20 · call current owners
Franchisee Contacts
85 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pizza Guys · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pizza Guys franchise?
The total investment to open a Pizza Guys franchise ranges from $216K – $477K, 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 Guys franchise owners earn?
According to Item 19 of the Pizza Guys FDD, the average gross sales per unit is $964K. The median is $932K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Pizza Guys's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Pizza Guys (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Pizza Guys franchise locations are there?
As of their most recent FDD filing, Pizza Guys has 90 total units in the United States, including 77 franchised units and 5 company-owned units. 8 new units were opened in the latest reporting year.
Is Pizza Guys a good franchise to buy?
FranchiseVerdict rates Pizza Guys as a A-grade franchise with a risk score of 29 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.