Bottom line
- Total investment $46K – $453K including a $5K franchise fee, 10.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 31 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Hut unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Overview
About
Pizza Hut franchisees operate delivery, carryout, and dine-in pizza restaurants, managing kitchen operations, staff, inventory, marketing, and customer service. Daily operations include food preparation, order fulfillment, delivery logistics coordination, and point-of-sale management while remitting 10% of gross revenue to the franchisor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
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 Hut presents elevated risk due to shrinking unit base, undisclosed financial performance, active multi-party litigation, unprotected territory, and opacity around franchisee profitability.
Score breakdown · what drove the 56 / 100 rating
- 01MINORDeclining unit count (2.3% YoY contraction) signals system-wide weakness and potential market saturation
- 02MEDNo disclosed average revenue or net income data (Item 19) prevents accurate ROI assessment and suggests weak unit economics
- 03HIGHMultiple active litigations including $6.7M judgment won by franchisor, improper termination claims, and fiduciary duty breach allegations indicate franchisee relationship stress
- 04MINORUnprotected territory creates direct competition risk from other Pizza Hut franchisees and company-owned stores
- 05MINOR10% royalty on gross sales (not net profit) creates cash flow burden during low-margin periods
- 06MINOR5-year term is shorter than industry standard, creating renewal uncertainty and reinvestment risk
- 07MINOR$46,100–$453,000 range is extremely wide, suggesting highly variable unit economics or inconsistent implementation
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pizza Hut · FDD (2024) PDF