A54/100FDD 2025
Pizza Guys — Litigation & Risk
Food & Beverage - Pizza · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
54 / 100
FranchiseVerdict composite
Rating
STRONG
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
6
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$1.6M
Avg loan size
$267K
Participating lenders
3
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
5 yrs
Post-termination restriction on similar businesses
Franchisor can compete
No
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
California
State whose law governs disputes — relevant if you're not based there
What drove the 54/100 rating
Risk Score Breakdown
- 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 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.