Sauce Pizza / Wine
Bottom line
- Total investment $1.3M – $5.5M including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.9M/year (median $2.2M).
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 169 loans (below the industry average).
- 18 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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 Sauce Pizza / Wine unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Sauce Pizza / Wine units return on equity?
Equity IRR · 5-yr
30.1%
3.72× MOIC
Year-1 DSCR
2.68×
EBITDA ÷ debt service
Equity required
$8.4M
on $19.2M purchase
Total debt
$10.7M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate casual dining establishments serving pizza and wine in a relaxed atmosphere. Day-to-day operations include managing kitchen and front-of-house staff, inventory procurement, food preparation, customer service, and wine program curation. Revenue models depend on dine-in, takeout, and delivery channels.
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 · 5 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
A financially distressed franchisor with shrinking unit growth, undisclosed profitability, significant litigation exposure, and unprotected territories presents high capital-at-risk for franchisees seeking established brand stability.
Score breakdown · what drove the 64 / 100 rating
- 01HIGHGoing Concern False status indicates potential financial viability issues at franchisor level
- 02HIGHSignificant litigation history involving breach of contract, misrepresentation, and trademark infringement suggests operational and legal instability
- 03MINOROnly 13 units with unknown growth trajectory suggests stagnant or declining system (typical growth franchises have 50+ units)
- 04MEDWide investment range ($1.3M–$5.5M) with no disclosed average net income makes ROI projections impossible
- 05MINORUnprotected territory creates direct competition risk from other franchisees within same geographic areas
- 06MINORHigh initial investment relative to small unit count and unknown profitability creates significant downside exposure
- 07MINOR5% royalty plus $10/week surcharge on $1.9M average revenue yields ~$100K+ annual franchisor revenue per unit, yet system is not growing
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
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sauce Pizza / Wine · FDD (2026) PDF