Rosati’s Pizza
Formerly known as Cabinet IQ
Bottom line
- Total investment $265K – $1.5M including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $971K/year.
- Rated STRONG with a risk score of 47/100. 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
12%
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
$971K
on $4.9M purchase
Total debt
$3.9M
SBA $2.4M + senior + seller note
Overview
About
Franchisees operate traditional pizza restaurants featuring made-to-order pies, sides, and beverages. Day-to-day operations involve managing kitchen staff, inventory procurement, customer service, delivery logistics, and maintaining brand standards across a 15-year agreement. Most units likely operate as standalone locations or delivery-focused models with protected territories.
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 · 10 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 moderate-to-cautionary risk due to unit decline, undisclosed profitability metrics, and wide investment variance that obscures true ROI potential.
Score breakdown · what drove the 47 / 100 rating
- 01MINORUnit count declining 2% YoY (62 units → ~61) suggests system contraction or underperformance
- 02MEDNet income not disclosed in FDD Item 19 — impossible to assess actual profitability at $970k avg revenue
- 03MINORWide investment range ($264k–$1.48M) indicates vastly different unit economics depending on location/format
- 04MINOR5% royalty + overhead on $970k revenue leaves slim margins if net income is below 10-15%
- 05HIGHNo going concern statement is positive, but declining unit count contradicts growth narrative
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
36 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Rosati’s Pizza · FDD (2025) PDF