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D70/100FDD 2025

Round Table Pizza — Litigation & Risk

Food & Beverage - Pizza · FDD Items 3, 4 & 5

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Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
70 / 100
FranchiseVerdict composite
Rating
CAUTION
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
104
Government-backed loans issued
Default rate
11.4%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
8 loans
Loans charged off or defaulted
Total loan volume
$45.8M
Avg loan size
$440K
Participating lenders
42

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 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
California
State whose law governs disputes — relevant if you're not based there

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-1.7% YoY) indicates system contraction and potential market saturation or franchisee dissatisfaction
  2. 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
  3. 03MEDNo average net income disclosed in Item 19 prevents accurate ROI analysis; combined with $502,900-$2.5M investment range, true profitability is opaque
  4. 04HIGHGoing concern warning flag on parent company financial statements raises questions about corporate support, capital availability, and long-term viability
  5. 05MINORHigh royalty floor ($750/month minimum) creates fixed costs that may exceed 4% of sales for struggling locations, pressuring margins
  6. 06MINORWide investment range ($2M spread) suggests inconsistent unit economics or build-out costs, creating uncertainty about comparable performance

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.