Pizza Karma Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Pizza Karma is a fast-casual franchise serving Indian-inspired and classic pizzas made to order. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Pizza Karma franchise requires a total initial investment of $317K – $582K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $317K – $582K
- 53rd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 3
- 15th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $317K – $582K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 21 audited financials (FYE 2022 & 2023, auditor Go Tax Services, LLP / Micah Whiting CPA) are present in Exhibit E but their balance sheet/income statement figures did NOT extract as text. The only figures available in the extracted text are from the UNAUDITED interim balance sheet of Karma Franchise LLC as of September 3, 2024 (whole US dollars, not thousands): TOTAL ASSETS $55,340.06 = Total Liabilities $45,000.00 + Total Equity $10,340.06 (reconciles); Net Income $18,644.49 (retained earnings -$8,304.43). No revenue/income statement figures were extractable. Franchisor organized June 22, 2021; wholly owned subsidiary of parent Naanza, LLC.
- RISKVerdict D (Below average), verdict score 36/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Karma Franchise LLC
- Parent company
- Naanza, LLC
- CEO title
- Chief Executive Officer
- Rajesh Khanna Selvaraj
- Incorporated in
- MN
- HQ
- 3500 Vicksburg Lane N., #270, Plymouth, MN 55447
- Auditor
- Go Tax Services, LLP
- Audited financials
- Franchisor revenue
- $33K
- vs $28K prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- of ours
- EPPK Food Truck
- PIZZA KARMA Eden Prairie
- may
- PIZZA KARMA Maple Grove
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Rajesh Khanna Selvaraj
- Headquarters
- MN
- Founded
- 2021
- FDD year
- 2024
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 32% below the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $25K | $35K |
| Equipment, build-out, other | $262K | $517K |
| Total initial investment | $317K | $582K |
Source: Pizza Karma 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $317K – $582K
- Middle of category vs category
- Liquid capital req'd
- $25K – $35K
- Middle of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $200 |
| Training fee | $5K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $8K – $13K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Pizza Karma did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Pizza Karma unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
23%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Item 21 audited financials (FYE 2022 & 2023, auditor Go Tax Services, LLP / Micah Whiting CPA) are present in Exhibit E but their balance sheet/income statement figures did NOT extract as text. The only figures available in the extracted text are from the UNAUDITED interim balance sheet of Karma Franchise LLC as of September 3, 2024 (whole US dollars, not thousands): TOTAL ASSETS $55,340.06 = Total Liabilities $45,000.00 + Total Equity $10,340.06 (reconciles); Net Income $18,644.49 (retained earnings -$8,304.43). No revenue/income statement figures were extractable. Franchisor organized June 22, 2021; wholly owned subsidiary of parent Naanza, LLC.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +50.0% over 3 years (2 opened, 0 closed).
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Pizza Karma Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 2
- 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
- 1
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
- Net growth (3-yr)
- +50.0%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 5
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Early-stage pizza franchise with minimal unit count, undisclosed financials, and aggressive minimum royalties presents meaningful profitability and validation risks.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Largest disclosed settlement: $30,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Go Tax Services, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 36 / 100 verdict
- 01MINOROnly 3 units in system with unknown growth trajectory suggests early-stage or stalled expansion
- 02MINORNo average revenue or net income disclosure (Item 19 absent) prevents ROI verification on $317k-$582k investment
- 03MINORMinimum royalty of $1,500/month ($18,000/year) creates fixed cost burden regardless of sales performance
- 04MINORFranchise fee of $30,000 is modest, but combined with high total investment suggests significant non-franchisor startup costs
- 05MED10-year term is lengthy without disclosed unit growth, exit data, or renewal rates to assess system viability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Minnesota (office of the American Arbitration Association closest to franchisor's principal executive office) |
| Jury trial waiver | No |
| Governing law | MN |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 122 hrs
- Training location
- Electronically, Minneapolis metropolitan area, or another Restaurant designated by franchisor
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee selects site subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS System
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pizza Karma · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pizza Karma franchise?
The total investment to open a Pizza Karma franchise ranges from $317K – $582K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pizza Karma franchise owners earn?
Pizza Karma does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Pizza Karma FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Pizza Karma FDD and qualifies whose outlets they describe.
What is Pizza Karma's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Pizza Karma (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 Karma franchise locations are there?
As of their most recent FDD filing, Pizza Karma has 3 total units in the United States, including 2 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Pizza Karma a good franchise to buy?
FranchiseVerdict rates Pizza Karma as a D-grade franchise with a verdict score of 36 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Pizza Karma, you can request corrections or provide updated information.
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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.