Pizza Karma
Formerly known as Karma Yoga & Wellness
Bottom line
- Total investment $317K – $582K including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 169 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Karma unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Overview
About
Franchisees operate quick-service or casual dining pizza restaurants under the Pizza Karma brand. Day-to-day operations include food preparation, inventory management, customer service, delivery coordination, and point-of-sale management while adhering to brand standards and paying 6% royalties plus a $1,500 monthly minimum fee.
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 · 19 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
Early-stage pizza franchise with minimal unit count, undisclosed financials, and aggressive minimum royalties presents meaningful profitability and validation risks.
Score breakdown · what drove the 57 / 100 rating
- 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
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
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pizza Karma · FDD (2024) PDF