Pizza Ranch Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Pizza Ranch is a Midwest franchise serving pizza and fried chicken via a buffet and dine-in, plus carryout and delivery. Franchisees run restaurants managing buffet production, kitchen, and a large service staff.
FranchiseVerdict summary · 2026
A Pizza Ranch franchise requires a total initial investment of $2.1M – $3.0M, including a $8K – $30K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 8.2% charge-off rate across 243 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $2.1M – $3.0M
- 38th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 218
- 34th pct Service Resta…
- SBA charge-off
- 8.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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 $2.1M – $3.0M including a $30K franchise fee.
- RETURNSItem 21 audited consolidated financial statements of Pizza Ranch, Inc. and Subsidiaries (Iowa S-corp), FYE Dec 31, 2024 (with comparatives 2023, 2022). Figures in whole US dollars (statements presented in whole dollars, no thousands scaling). Total revenue $31,076,684 comprises franchise royalties $13,786,680, restaurant revenue $12,479,034, volume allowance rebates $3,162,220, financial services revenue $1,324,034, franchise fees $210,444, transfer fees $68,000, franchise supplies/merchandise $2,978, and other $43,294. Balance sheet reconciles: total assets $30,898,171 = total liabilities $8,235,928 (current $2,499,983 + noncurrent $5,735,945) + total stockholders' equity $22,662,243. Net worth = total stockholders' equity. Auditor: King Reinsch Prosser & Co., L.L.P. (Sioux City, IA), report dated March 24, 2025.
- RISKVerdict A (Strongest tier), verdict score 59/100 (higher is better). SBA loan charge-off rate of 8.2% across 243 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATAItem 19 reports gross sales and ebitdar rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Pizza Ranch, Inc.
- Ultimate parent
- Majority family-owned
- Predecessor
- and Affiliates
- Prior franchisor entity
- CEO title
- President and Co-Founder
- Adrie Groeneweg
- CEO experience
- 38 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- IA
- HQ
- 204 19th Street SE, Orange City, IA 51041
- Auditor
- KRP CPAs (Sioux City, Iowa)
- Audited financials
- Franchisor revenue
- $31.1M
- vs $29.9M 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 is PR Production Fund
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Adrie Groeneweg
- Headquarters
- IA
- Founded
- 1981
- FDD year
- 2025
- States available
- 15
Can you afford it, and what does the money buy?
Entry cost runs 117% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $30K | $30K | |
| Furniture, Fixtures & Equipment | $493K | $700K | |
| Arcade Games | $378K | $550K | |
| Leasehold Improvements (Retrofit/Leased) | $1.0M | $1.4M | |
| Construction Costs (New Ground-Up) | $2.0M | $2.4M | |
| Architect/Engineering Fees (Retrofit/Leased) | $46K | $70K | |
| Architect/Engineering Fees (New Ground-Up) | $110K | $130K | |
| Land | $0 | $800K | |
| Pre-Opening Training Expenses | $80K | $137K | |
| Food used during Team Member Training | $7K | $9K | |
| Start-Up Costs | $24K | $44K | |
| Rent | — | — | |
| Interest on Pre-Opening Loans (Retrofit/Leased) | $10K | $38K | |
| Interest on Pre-Opening Loans (New Ground-Up) | $10K | $90K | |
| Working Capital (3 mos.) | $20K | $20K | |
| Total initial investment | $4.2M | $6.4M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $2.1M – $3.0M
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $20K
- Top 40% of category vs category
- Franchise fee
- $8K – $30K
- Top 40% of category vs category
- Royalty
- Greater of $500 or 3.5% of Gross Revenues per month
- Ad fund
- 2.3%
- typical 3–5%
- Total fee load
- 5.8%
- vs 9–13% typical
- Payback period
- 15.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Greater of $500 or 3.5% of Gross Revenues per month |
| Marketing / ad fund | 2.3% of gross sales |
| Training fee | $16K |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Inventory (initial) | $7K – $9K |
| Total fee load | 5.8% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $293K as EBITDA 7.
Pizza Ranch 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 Ranch unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
3%
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: 2025 FDD
Financial Performance
Item 21 audited consolidated financial statements of Pizza Ranch, Inc. and Subsidiaries (Iowa S-corp), FYE Dec 31, 2024 (with comparatives 2023, 2022). Figures in whole US dollars (statements presented in whole dollars, no thousands scaling). Total revenue $31,076,684 comprises franchise royalties $13,786,680, restaurant revenue $12,479,034, volume allowance rebates $3,162,220, financial services revenue $1,324,034, franchise fees $210,444, transfer fees $68,000, franchise supplies/merchandise $2,978, and other $43,294. Balance sheet reconciles: total assets $30,898,171 = total liabilities $8,235,928 (current $2,499,983 + noncurrent $5,735,945) + total stockholders' equity $22,662,243. Net worth = total stockholders' equity. Auditor: King Reinsch Prosser & Co., L.L.P. (Sioux City, IA), report dated March 24, 2025.
- Item 19 type
- gross sales and ebitdar
- Sample size
- 212
- vs category median 18 · large
- Range (low → high)
- $278K→$5.5M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 805 Full-Service Restaurants brands
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 5.8% — below the Full-Service Restaurants average of 7.6%.
Disclosure
Item 19 reports gross sales and ebitdar rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (+3.4% 3-year CAGR) with 218 units.
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 Full-Service Restaurants averages
How Pizza Ranch Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 218
- Opened
- 6
- Last reporting year
- Closed
- 6
- Terminated
- 6
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.3%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- -3.3%
- Net unit change over 3 years
- 3-yr CAGR
- +3.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 17
- Closed (3yr)
- 12
- Terminated (3yr)
- 12
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 31
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 7
- Franchisor's next-year forecast
- Transfer rate
- 5.5%
- Owners selling to other franchisees
- Termination rate
- 2.7%
- Franchisor-initiated terminations
- Ceased ops
- 2.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Illinois
- Indiana
- Michigan
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 243
- Loan volume
- $123.0M
- Median loan
- $165K
- 50th percentile
- Charge-off rate
- 8.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 91.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 66
- Defaults
- 12
- Typical loan rate
- 6.3%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand beats franchise avg ↓
- Jobs supported
- 2,877
- 4.7 per loan
- Lender concentration
- 7%
- top lender's share
Borrower mix: 47% went to startups / new businesses, 53% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 21.5% vs 25.0% for independents — franchising is associated with 14% lower SBA default risk in this category.
Vintage analysis
Pizza Ranch charge-off rate by loan vintage
Top lenders financing Pizza Ranch franchisees
Showing 3 of 66 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Pizza Ranch's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 13 states
- Startup risk premium and job creation velocity
- 33-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 8.2% — 49% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KRP CPAs (Sioux City, Iowa)
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
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 59 / 100 verdict
- 01MINORUnit count stagnation — 218 units with 'unknown growth' suggests flat or declining system; no disclosure of unit openings/closures raises accountability concerns
- 02MINORSubstantial monthly royalty burden ($500 minimum + 3.5%) on $1.65M average revenue equals ~$57,640–$65,000 annually (3.5–3.9% of gross), limiting franchisee profitability
- 03MEDCasual dining category experiencing secular headwinds — pizza and family dining face traffic pressures; no evidence of digital/delivery strength to offset dine-in decline
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.8% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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 |
| RoFR response window | 90 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 7 |
| Mandatory arbitration | No |
| Arbitration location | Iowa |
| Jury trial waiver | No |
| Governing law | IA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 400 hrs
- Training location
- Certified Training Restaurant or Pizza Ranch Support Center, Orange City, Iowa
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Revel Systems (restaurant); Embed (FunZone)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel Systems (restaurant); Embed (FunZone)
Item 20 · call current owners
Franchisee Contacts
212 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pizza Ranch · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pizza Ranch franchise?
The total investment to open a Pizza Ranch franchise ranges from $2.1M – $3.0M, 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 Ranch franchise owners earn?
Pizza Ranch 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 Ranch 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 Ranch FDD and qualifies whose outlets they describe.
What is Pizza Ranch's franchise failure rate?
Based on SBA 7(a) loan data, Pizza Ranch has a charge-off rate of 8.2% across 243 loans, meaning 8.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Pizza Ranch franchise locations are there?
As of their most recent FDD filing, Pizza Ranch has 218 total units in the United States, including 212 franchised units and 6 company-owned units. 6 new units were opened in the latest reporting year.
Is Pizza Ranch a good franchise to buy?
FranchiseVerdict rates Pizza Ranch as a A-grade franchise with a verdict score of 59 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
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If you represent Pizza Ranch, 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.