Villa Pizza
Formerly known as Villa Italian Kitchen
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).
- Rated CAUTION with a risk score of 74/100. SBA loan default rate of 0.0% across 17 loans (below the industry average).
- 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
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 Villa Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Villa Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.5M purchase
Total debt
$6.0M
SBA $3.7M + senior + seller note
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.
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 · 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 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
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.
Score breakdown · what drove the 74 / 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
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
49 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Villa Pizza · FDD (2026) PDF