FranchiseVerdict
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B63/100FDD 2025

Salvatore’s Old Fashioned Pizzeria — Litigation & Risk

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

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

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

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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
New York
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure - cannot validate profitability claims or average unit economics
  2. 02MINORMinimal system growth (3.2% YoY) suggests market saturation or franchisee satisfaction issues
  3. 03MINORWide investment range ($76K-$634K) indicates inconsistent unit models or hidden cost variables
  4. 04MINORRoyalty structure heavily favors franchisor on low-revenue units ($1,000/month floor may exceed 2% on struggling locations)
  5. 05HIGHGoing Concern = False status is ambiguous and concerning - requires clarification on financial stability
  6. 06MEDOnly 32 units is a small system with limited support infrastructure and economies of scale

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.