F94/100FDD 2026
Villa Pizza — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Elevated Risk
8 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
94 / 100
FranchiseVerdict composite
Rating
AVOID
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
14
Government-backed loans issued
Default rate
33.3%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$2.9M
Avg loan size
$211K
Participating lenders
8
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
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
New Jersey
State whose law governs disputes — relevant if you're not based there
What drove the 94/100 rating
Risk Score Breakdown
- 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 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.