FWeakest tier28/100FDD 2025
Pizzeria Uno: Litigation & Risk
Full-Service Restaurants · FDD Items 3, 4 & 5
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)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 28 / 100
- FranchiseVerdict composite · higher is better
- Rating
- F
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 21
- Government-backed loans issued
- Charge-off rate
- 38.5%
- vs 16% franchise average
- 5-yr charge-off rate
- 42.9%
- Defaults
- 5 loans
- Loans charged off or defaulted
- Total loan volume
- $13.7M
- Avg loan size
- $650K
- Participating lenders
- 12
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
- 1 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
- Massachusetts
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
No litigation required to be disclosed in this Disclosure Document.
What drove the 28/100 verdict
Risk Score Breakdown
- 01MEDSevere unit decline of 23.3% YoY (from ~69 to 53 units) indicates systemic franchisee distress or brand deterioration
- 02MEDNet income not disclosed in FDD Item 19 — cannot assess actual profitability despite $2.3M average revenue
- 03MINORHigh initial investment ($1.2M–$2.5M) paired with declining unit count creates severe recoupment risk
- 04MINORNo protected territory means franchisees compete with each other and company-owned locations
- 05MINORMinimum monthly royalty (amount unspecified) plus 5% of gross sales creates fixed cost burden during revenue downturns
- 06MED10-year term locks franchisee into contract while system contracts; limited exit flexibility
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.