FranchiseVerdict
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B57/100FDD 2025

Rosati's Pizza — Litigation & Risk

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

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Moderate — Review

4 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
4
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
57 / 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
111
Government-backed loans issued
Default rate
16.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
12 loans
Loans charged off or defaulted
Total loan volume
$35.2M
Avg loan size
$317K
Participating lenders
56

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
3 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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 57/100 rating

Risk Score Breakdown

  1. 01MEDNet income not disclosed in FDD Item 19 — cannot validate profitability claims against $849,556 average revenue
  2. 02HIGHMultiple ongoing and concluded litigation matters including trademark infringement, franchise assignment disputes, and landlord default cases — suggests operational and legal instability
  3. 03MEDSlow unit growth of only 4.0% YoY with 131 units — below typical franchise expansion rates, indicating limited brand momentum or franchisee satisfaction
  4. 04MINORWide investment range ($147K–$1.25M) suggests inconsistent unit economics and unclear cost structure across territories
  5. 05HIGHGoing Concern flag is FALSE but litigation history raises questions about franchisor financial stability and ability to support franchisees

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.