Bottom line
- Total investment $2.1M – $4.9M including a $30K franchise fee.
- Average unit revenue of $1.6M/year (median $1.9M). Estimated payback in 12.0 years.
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 174 loans (below the industry average).
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 Ranch unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pizza Ranch units return on equity?
Equity IRR · 5-yr
38.5%
5.09× MOIC
Year-1 DSCR
2.17×
EBITDA ÷ debt service
Equity required
$3.9M
on $12.8M purchase
Total debt
$8.8M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate casual-dining pizza restaurants featuring buffet and carry-out service, typically in Midwest small-to-mid-sized markets. Day-to-day operations include managing 30–80 employees, running buffet lines, kitchen production, front-of-house service, inventory/food cost control, and local marketing to drive dine-in and delivery revenue.
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 · 6 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 Ranch presents moderate-to-cautious risk: high capital requirements, opaque unit economics (no Item 19), stagnant unit growth, and thin margins in a challenged segment warrant deep validation before commitment.
Score breakdown · what drove the 52 / 100 rating
- 01MINORHigh initial investment ($2.1M–$4.9M) with modest average net income ($292,974) yields 6–16% annual ROI — below typical franchise benchmarks
- 02MINORNo Item 19 financial performance representation — cannot verify if $1.65M average revenue and $293K net income are achievable or representative
- 03MINORUnit count stagnation — 218 units with 'unknown growth' suggests flat or declining system; no disclosure of unit openings/closures raises accountability concerns
- 04MINORSubstantial 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
- 05MEDCasual 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
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 Ranch · FDD (2025) PDF