Bottom line
- Total investment $147K – $1.2M including a $0 franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $850K/year (median $752K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 157 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 Rosati's Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Rosati's Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.4M
on $6.8M purchase
Total debt
$5.4M
SBA $3.4M + senior + seller note
Overview
About
Franchisees operate pizza restaurants delivering Rosati's menu (pizza, Italian sandwiches, pasta, appetizers) through dine-in, carryout, and delivery channels. Day-to-day operations include food preparation, inventory management, staffing, customer service, and local marketing. Franchisees pay 5% royalties on gross sales with a 20-year lease term and protected territory.
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
Rosati's presents meaningful caution-level risk due to undisclosed profitability metrics, active litigation, sluggish unit growth, and wide investment variance that obscure true franchisee returns.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — cannot validate profitability claims against $849,556 average revenue
- 02HIGHMultiple ongoing and concluded litigation matters including trademark infringement, franchise assignment disputes, and landlord default cases — suggests operational and legal instability
- 03MEDSlow unit growth of only 4.0% YoY with 131 units — below typical franchise expansion rates, indicating limited brand momentum or franchisee satisfaction
- 04MINORWide investment range ($147K–$1.25M) suggests inconsistent unit economics and unclear cost structure across territories
- 05HIGHGoing Concern flag is FALSE but litigation history raises questions about franchisor financial stability and ability to support franchisees
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
97 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Rosati's Pizza · FDD (2025) PDF