FranchiseVerdict
Sam & Louie’s® New York Pizzeria logo
D73/100FDD 2019

Sam & Louie’s® New York 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
73 / 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
12
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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

What drove the 73/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates potential financial distress or viability concerns at corporate level
  2. 02MINORNo net income disclosure in Item 19 prevents accurate ROI analysis on $327.5k-$468.7k investment
  3. 03MEDOnly 9 units systemwide suggests limited brand scale, unproven model, or recent contraction
  4. 04MINORUnprotected territory creates direct competition risk from other Sam & Louie's franchisees in same market
  5. 05MINORUnknown unit growth trajectory raises questions about system stability and franchisee success rates
  6. 06MINORHigh investment-to-revenue ratio (55-79% of avg revenue required upfront) creates extended breakeven risk

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.