Bottom line
- Total investment $484K – $719K including a $30K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $1.1M/year (median $1.1M). Estimated payback in 8.2 years.
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 97 loans (below the industry average).
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 Toppers Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Toppers Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$557K
on $2.8M purchase
Total debt
$2.2M
SBA $1.4M + senior + seller note
Overview
About
Toppers Pizza franchisees operate quick-service pizza restaurants, managing daily food preparation, customer service, delivery coordination, and staff oversight. Franchisees handle inventory management, local marketing, and P&L responsibility while adhering to brand standards for menu, pricing, and operations.
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 · 13 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
Declining unit count, lack of verified financial data, and thin margins create meaningful execution risk despite no litigation history.
Score breakdown · what drove the 52 / 100 rating
- 01MINORUnit count declining 4.3% YoY (71 units) — indicates system contraction and potential franchisee struggles
- 02HIGHNo Item 19 financial performance representation (Going Concern = False) — cannot validate the $1.11M avg revenue claim independently
- 03MINORThin profit margins: $73,386 net income on $1.11M revenue (6.6% net) leaves little buffer for underperformers or economic downturns
- 04MINORHigh initial investment ($484K-$718K) paired with declining unit count raises ROI sustainability questions
- 05MINOR5.5% royalty on gross sales (not net) means franchisees pay royalties even in loss-making months
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
54 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Toppers Pizza · FDD (2024) PDF