Villa PizzaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Villa Pizza franchise requires a total initial investment of $374K – $1.5M, including a $25K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.1M[2]. SBA 7(a) loans show a 33.3% charge-off rate across 14 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $374K – $1.5M
- 25th pct Service Resta…
- Avg gross sales
- $1.1M
- 11th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 59
- 38th pct Service Resta…
- SBA default
- 33.3%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
33.3% of SBA loans charged off across 14 loans, above the 16% franchise average.
Franchising since 1997. Systems this mature have refined operations and brand recognition.
Franchised units fell from 39 to 34 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $374K – $1.5M including a $25K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $794K).
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 33.3% across 14 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -12.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Villa Pizza, LLC
- Incorporated in
- DE
- HQ
- 25 Washington Street, Morristown, NJ 07960
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $2.4M
- vs $2.4M prior year
Overview
About
Villa Pizza franchisees operate casual dining/QSR pizza restaurants, managing daily food preparation, customer service, inventory, and staffing. Franchisees remit 6% of gross revenue in royalties regardless of profitability while operating under a 10-year agreement in an unprotected territory.
- CEO
- Anthony Scotto
- Headquarters
- NJ
- FDD year
- 2026
- States available
- 16
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $6K | $20K |
| Equipment, build-out, other | $343K | $1.4M |
| Total initial investment | $374K | $1.5M |
Source: Villa Pizza 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$96K
9.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
9.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $374K – $1.5M
- Better than avg vs category
- Liquid capital req'd
- $6K – $20K
- Better than avg vs category
- Franchise fee
- $25K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $50 |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $794K
- Item 19 type
- gross_sales
- Sample size
- 54 units
- vs category median 13 · large
- Range (low → high)
- $165K→$3.7M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Villa Pizza Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 59
- Opened
- 0
- Last reporting year
- Closed
- 5
- Turnover rate
- 8.5%
- Company-owned
- 25
- Corporate units in the system
- % franchised
- 58%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- -5.6%
- Net unit change last year
- 3-yr CAGR
- -12.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 14
- Loan volume
- $2.9M
- Median loan
- $125K
- 50th percentile
- Charge-off rate
- 33.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 66.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 4
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Villa Pizza's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
A 33.3% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
HIGH RISK: Shrinking franchise system with false going concern status, multiple ongoing litigations, non-transparent financials, and regulatory scrutiny indicates potential corporate instability with limited franchisee protections.
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 100 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial distress or solvency concerns at corporate level
- 02MINORUnit count declining 5.6% YoY (59 units) — shrinking system suggests franchisee dissatisfaction or market challenges
- 03MEDNet Income not disclosed — lack of transparency on profitability; unable to validate ROI claims against $373,750-$1,457,500 investment range
- 04HIGHMultiple active litigations including trademark disputes, lease defaults, consumer fraud claims, and regulatory investigations by Washington AG
- 05MINORUnpaid royalty lawsuits indicate franchisees unable to meet payment obligations or corporate enforcement issues
- 06MINORNo territory protection — direct competition possible from other Villa Pizza franchisees in your market
- 07MED6% royalty on undisclosed net margins creates unknown burden; at $1.07M avg revenue, that's ~$64,000 annually in royalties with unknown profitability baseline
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 8 |
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 133 hrs
- POS system
- Oracle/Simphony
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle/Simphony
Item 20 · call current owners
Franchisee Contacts
49 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Villa Pizza · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Villa Pizza franchise?
The total investment to open a Villa Pizza franchise ranges from $374K – $1.5M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Villa Pizza franchise owners earn?
According to Item 19 of the Villa Pizza FDD, the average gross sales per unit is $1.1M. The median is $794K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Villa Pizza's franchise failure rate?
Based on SBA 7(a) loan data, Villa Pizza has a charge-off rate of 33.3% across 14 loans, meaning 33.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Villa Pizza franchise locations are there?
As of their most recent FDD filing, Villa Pizza has 59 total units in the United States, including 39 franchised units and 25 company-owned units.
Is Villa Pizza a good franchise to buy?
FranchiseVerdict rates Villa Pizza as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.