Bottom line
- Total investment $216K – $477K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $964K/year (median $932K).
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Pizza Guys unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pizza Guys units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$385K
on $1.9M purchase
Total debt
$1.5M
SBA $1.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 49 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
60 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pizza Guys · FDD (2025) PDF