FranchiseVerdict
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D72/100FDD 2024

Uncle Maddio’s Pizza — 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
72 / 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
4
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
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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDSystem shrinking rapidly: 21.4% unit decline YoY suggests franchisee failure or brand weakness
  2. 02MINORNo Item 19 financial disclosure: Unable to validate revenue/profitability claims; opacity increases risk
  3. 03MINORHigh capital requirement ($303.5K-$778.8K) with unknown ROI creates significant downside exposure
  4. 04MINORMinimum royalty floor ($750/month = $9,000/year) creates fixed cost burden even during slow periods
  5. 05MINOROnly 12 units remaining: Minimal scale limits purchasing power, marketing efficiency, and support infrastructure
  6. 06MINORPizza category highly competitive with established players (Blaze, MOD, Pizza Hut, Domino's) limiting differentiation

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.