Bottom line
- Total investment $11K – $1.4M including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.2M).
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 95 loans (below the industry average).
- System contracting at -15.1% 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 Inn unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pizza Inn units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$285K
on $1.4M purchase
Total debt
$1.1M
SBA $0.7M + senior + seller note
Overview
About
Pizza Inn franchisees operate casual-service pizza restaurants, managing food preparation, customer service, delivery logistics, and point-of-sale operations. Daily operations include inventory management, staff scheduling, quality control of pizzas and sides, and local marketing to drive delivery and dine-in traffic in protected territories.
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 20 · 15 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 Inn presents HIGH RISK due to contracting unit base (-14.4% YoY), going concern status, razor-thin unit profitability (0.79% margin), and absence of Item 19 disclosures in a declining pizza segment.
Score breakdown · what drove the 59 / 100 rating
- 01MINORUnit count declining 14.4% year-over-year indicates system contraction and potential franchisee dissatisfaction
- 02HIGHGoing Concern flag = FALSE suggests financial viability questions at franchisor level
- 03MINORNet income margin of only 0.79% (11.2K on 1.43M revenue) is dangerously thin for pizza QSR and leaves no buffer for downturns
- 04MINORWide investment range ($11K-$1.45M) suggests inconsistent unit economics or undefined cost structure
- 05MINORNo Item 19 financial performance representations limits ability to validate franchisor claims about profitability
- 06MED20-year term is unusually long and locks franchisee into declining system with limited exit flexibility
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pizza Inn · FDD (2024) PDF