Villa Pizza Franchise Cost, Revenue & Review 2026
- Investment
- $374K – $991K
- Disclosed sales
- $1.1M
- gross sales, not profit
- SBA charge-off
- 33.3%
- on 14 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Villa Pizza is a quick-service Italian franchise serving New York-style pizza and pasta, often in mall food courts. Franchisees run the locations, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Villa Pizza franchise requires a total initial investment of $374K – $991K, including a $25K – $35K 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]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $374K – $991K
- 61st pct Service Resta…
- Avg gross sales
- $1.1M
- 20th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 59
- 68th pct Service Resta…
- SBA charge-off
- 33.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $374K – $991K including a $25K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.1M/year (median $794K).
- RISKVerdict D (Below average), verdict score 33/100 (higher is better). 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, 2010–2025).
- GROWTHNegative: net -2 franchised outlets in the latest year (0 opened, 2 closed); 1 signed but not yet open (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Villa Pizza, LLC
- Predecessor
- Villa Pizza, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Director
- Anthony Scotto
- Incorporated in
- Delaware
- 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
- CEO
- Anthony Scotto
- Headquarters
- NJ
- Founded
- 1999
- FDD year
- 2026
- States available
- 16
Can you afford it, and what does the money buy?
Entry cost runs 40% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $6K | $15K |
| Equipment, build-out, other | $343K | $951K |
| Total initial investment | $374K | $991K |
Source: Villa Pizza 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $374K – $991K
- Middle of category vs category
- Liquid capital req'd
- $6K – $15K
- Top 40% of category vs category
- Franchise fee
- $25K – $35K
- Top 40% of category vs category
- Royalty
- 6.0%
- 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 |
| Inventory (initial) | $8K – $12K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 10% above the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Villa Pizza until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$693K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Villa Pizza unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $794K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical average/median gross sales
- Sample size
- 31 outlets
- vs category median 19
- Range (low → high)
- $165K→$3.7MCited, not corroborated — printed on page 49 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.1M/year in gross sales. Median is $794K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.6x.
Fee burden
Total ongoing fee load of 9.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -14.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Villa Pizza Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 59
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.4%
- Company-owned
- 25
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- -14.0%
- Net unit change over 3 years
- 3-yr CAGR
- -14.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 1
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 1
- 0.02 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 16 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
16
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
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%
- on 14 loans · 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
- Typical loan rate
- 5.9%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand above franchise avg ↑
- Jobs supported
- 144
- 4.9 per loan
- Lender concentration
- 50%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 21.5% vs 25.0% for independents — franchising is associated with 14% lower SBA default risk in this category.
Top lenders financing Villa Pizza franchisees
Showing 3 of 8 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Villa Pizza from SBA 7(a) FOIA data.
- Principal loss rate
- 12.5%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 5.88%
- Avg chargeoff amount
- $92K
- Lender concentration
- 50.0%
- Job velocity
- 4.9 per $100K
- NAICS benchmark
- 15.7%
- NAICS 722211
- Jobs supported
- 144
Top SBA lendersTop lender holds 50% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Popular Bank | 7 | $1.3M | 66.7% |
| 2 | Columbia Bank | 1 | $70K | 0.0% |
| 3 | Bank of America, National Association | 1 | $100K | 0.0% |
| 4 | Hanmi Bank | 1 | $100K | 0.0% |
| 5 | Economic Development Bank for Puerto Rico | 1 | $359K | 0.0% |
| 6 | Bank of Colorado | 1 | $240K | 0.0% |
| 7 | FirstBank Puerto Rico | 1 | $150K | 0.0% |
| 8 | Western Alliance Bank | 1 | $676K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NJNew Jersey | 2 | 0 | 0.0% |
| PAPennsylvania | 2 | 1 | 50.0% |
| PRPuerto Rico | 2 | 0 | 0.0% |
| SCSouth Carolina | 2 | 2 | 100.0% |
| TXTexas | 2 | 1 | 50.0% |
| CACalifornia | 1 | 0 | 0.0% |
| COColorado | 1 | 0 | 0.0% |
| IDIdaho | 1 | 0 | 0.0% |
| NVNevada | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 33.3% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 33.3% — 108% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Franchisee dispute over Egypt trademark misrepresentation (pending, $362,000 claimed); affiliate lease dispute at American Dream Mall (dismissed in Villa's favor 2024); multiple concluded actions for unpaid royalties resulting in settlements and default judgments (including a $738,872.99 judgment and a $1,132,372.72 default judgment); a franchisee rescission/fraud claim settled for $60,000 plus royalty concessions; a Washington AG investigation into a no-hire provision resolved via Assurance of Discontinuance (2019).
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Villa's President, Biagio Scotto, was president of Villa Pizza Specialties, Inc., a Texas corporation, which operated one store in Texas and filed Chapter 11 bankruptcy (case no. 15-31057, U.S. Bankruptcy Court - District of New Jersey); case closed February 14, 2017.
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Figures from audited financial statements of Villa Pizza, LLC (a limited liability company) for FY ended December 29, 2024, stated in whole US dollars. Total revenues comprise royalties $2,324,464, franchise fees $30,058, and other income $17,507. Balance sheet reconciles: assets $899,224 = liabilities $154,516 + members' equity $744,708. Auditor report signed in Florham Park, NJ, dated March 20, 2025; CPA firm name not printed in the disclosed text.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 33 / 100 verdict
- 01HIGH9 litigation matters incl. $738,872 judgment and pending $362K suit
- 02MEDOld closed (2017) affiliate Chapter 11 (low weight)
- 03MINORNet growth -14.0%
- 04MINORProfitable: net income $1,279,745
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 8 |
View Item 3 litigation summary
Franchisee dispute over Egypt trademark misrepresentation (pending, $362,000 claimed); affiliate lease dispute at American Dream Mall (dismissed in Villa's favor 2024); multiple concluded actions for unpaid royalties resulting in settlements and default judgments (including a $738,872.99 judgment and a $1,132,372.72 default judgment); a franchisee rescission/fraud claim settled for $60,000 plus royalty concessions; a Washington AG investigation into a no-hire provision resolved via Assurance of Discontinuance (2019).
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 133 hrs
- Ongoing training
- Required
- Site selection
- franchisor
- Franchisor financing
- Not offered
- Item 10
- POS system
- Oracle/Simphony
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle/Simphony
Item 20 · call current owners
Franchisee Contacts
39 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 – $991K, 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.
Who owns Villa Pizza?
Villa Pizza is franchised by Villa Pizza, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Villa Pizza FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Villa Pizza FDD and qualifies whose outlets they describe.
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 34 franchised units and 25 company-owned units.
Is Villa Pizza a good franchise to buy?
FranchiseVerdict rates Villa Pizza as a D-grade franchise with a verdict score of 33 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.