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B65/100FDD 2025

Pizza Ranch — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
129
Government-backed loans issued
Default rate
8.7%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
9 loans
Loans charged off or defaulted
Total loan volume
$61.7M
Avg loan size
$478K
Participating lenders
59

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Iowa
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORHigh initial investment ($2.1M–$4.9M) with modest average net income ($292,974) yields 6–16% annual ROI — below typical franchise benchmarks
  2. 02MINORNo Item 19 financial performance representation — cannot verify if $1.65M average revenue and $293K net income are achievable or representative
  3. 03MINORUnit count stagnation — 218 units with 'unknown growth' suggests flat or declining system; no disclosure of unit openings/closures raises accountability concerns
  4. 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
  5. 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 FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.