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A45/100FDD 2025

Vocelli Pizza — Litigation & Risk

Food & Beverage - Pizza · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
45 / 100
FranchiseVerdict composite
Rating
STRONG
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
15
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$2.0M
Avg loan size
$133K
Participating lenders
5

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
3 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
Pennsylvania
State whose law governs disputes — relevant if you're not based there

What drove the 45/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern status is FALSE — indicates potential financial instability or undisclosed operational challenges at corporate level
  2. 02MEDNet income not disclosed in FDD Item 19 — prevents accurate ROI analysis and suggests either poor profitability or corporate unwillingness to share performance data
  3. 03MINORMinimal unit growth (2.8% YoY) with only 75 locations — stagnant franchise system raises questions about market demand and franchisee satisfaction
  4. 04HIGHRecent litigation (2023-2024) involving breach of contract, non-compete violations, and royalty non-payment — signals enforceability issues and potential friction in franchisor-franchisee relationships
  5. 05MINORUnprotected territory — franchisees face direct competition from other Vocelli locations and no contractual protection of their market
  6. 06MINORWide investment range ($25K-$598K) with vague cost structure — suggests inconsistent unit models or hidden variables affecting startup costs

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.