Bottom line
- Total investment $503K – $2.6M including a $25K franchise fee.
- Average unit revenue of $1.1M/year (median $1.1M).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 143 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Round Table Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
6%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Round Table Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$223K
on $1.1M purchase
Total debt
$894K
SBA $0.6M + senior + seller note
Overview
About
Round Table Pizza franchisees operate casual pizza restaurants serving dine-in, carryout, and delivery customers. Day-to-day operations include food preparation, staffing management, inventory control, and customer service across locations with protected territories averaging ~$1.1M in annual revenue.
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 · 4 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
Round Table Pizza presents elevated risk due to system contraction, material litigation against parent company, undisclosed profitability metrics, and going concern warnings that warrant significant due diligence before investment.
Score breakdown · what drove the 52 / 100 rating
- 01MINORDeclining unit count (-1.7% YoY) indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHHigh litigation exposure: securities class actions against parent company FAT Brands and executives, plus state regulatory actions on franchise registration suggest governance and disclosure issues
- 03MEDNo average net income disclosed in Item 19 prevents accurate ROI analysis; combined with $502,900-$2.5M investment range, true profitability is opaque
- 04HIGHGoing concern warning flag on parent company financial statements raises questions about corporate support, capital availability, and long-term viability
- 05MINORHigh royalty floor ($750/month minimum) creates fixed costs that may exceed 4% of sales for struggling locations, pressuring margins
- 06MINORWide investment range ($2M spread) suggests inconsistent unit economics or build-out costs, creating uncertainty about comparable performance
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
81 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Round Table Pizza · FDD (2025) PDF