Verified — real FDD extraction
SBA-eligible · directory code S2196 since 2017
GODFATHER'S PIZZA
Food & Dining · independent · est. —
Godfather's Pizza is a long-running American pizza chain known for thick-crust pizzas, sold for dine-in, carryout, and delivery, including kiosk locations inside convenience stores. A franchisee operates a pizza restaurant or counter, managing food prep, staff, and orders.
GODFATHER'S PIZZA net unit count declined -0.3% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Showing strain
Distress
The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.
Exit rate · latest year
3.6%
vs 8.6% across 137 food & dining systems
Cost to open
$156K–$1.3M
Item 7 total investment range
SBA loan defaults
17.9%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 21 of 586 franchised outlets left the system — a 3.6% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 604 | 608 | 598 |
| Opened | 31 | 41 | 27 |
| Transfers | 6 | 15 | 7 |
| Terminations | 27 | 54 | 21 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 608 | 598 | 606 |
| Net change | +4 | -10 | +8 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 64 SBA-backed loans to GODFATHER'S PIZZA franchisees since 1991. Of the 56 that have resolved, 17.9% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
17.9%
10 of 56 resolved defaulted
72.9%
avg. charged-off $ ÷ approved $
13.0%
default rate × loss severity
$250,000
what recent franchisees borrowed
58 mo
approval → charge-off, defaulted loans
2 vs 4
distinct banks — pulling back
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO GODFATHER'S PIZZA BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
Inb, National Association
8.8% of this brand's loans
Who buys it
64.7%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
Not enough resolved loans to split
Computed from 64 SBA 7(a)/504 loans to GODFATHER'S PIZZA franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $25K franchise fee (Item 5) and a total investment of $156K–$1.3M (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$156K–$1.3M
all-in investment range
Franchise fee (Item 5)
$25K
upfront, one-time
Royalty (Item 6)
3.25%
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$33K
3.25% of sales, before profit
Over a 10-yr term
$325K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for GODFATHER'S PIZZA with an independent CPALabor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 18 wage cases against operators of this system, recovering $9K in back wages for 58 workers, including 9 child-labor cases. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
18
Back wages owed
$9K
Employees affected
58
Since 2020
2
9 of these cases involved child-labor violations, covering 40 minors across the system's franchised locations.
Read this carefully. The employers in these cases are individual GODFATHER'S PIZZA franchisees — separately owned businesses operating under the brand name — not GODFATHER'S PIZZA itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2025.
Modeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand looks safer than 72% of systems we score.
Risk percentile
28 / 100
Loan-corroborated
Modeled SBA charge-off
9.7%
Observed SBA charge-off
17.9%
Top drivers: System size (log units) (lowers) · Share financed by high-loss lenders (lowers) · Single-lender dependence (raises) · Investment ceiling (log) (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for GODFATHER'S PIZZA. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing GODFATHER'S PIZZA's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →GODFATHER'S PIZZA franchise questions, answered from the filings
What percentage of GODFATHER'S PIZZA franchises closed last year?
In GODFATHER'S PIZZA's latest FDD Item 20 (fiscal 2025), 21 of 586 franchised outlets left the system — an annualized exit rate of 3.6% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a GODFATHER'S PIZZA franchise cost?
Per GODFATHER'S PIZZA's 2025 FDD, buying in requires an initial franchise fee of $25K (Item 5) and a total initial investment of $156K–$1.3M (Item 7).
What royalty does GODFATHER'S PIZZA charge?
GODFATHER'S PIZZA charges an ongoing royalty of 3.3% of gross sales, per Item 6 of its 2025 FDD.
Does GODFATHER'S PIZZA disclose earnings (Item 19)?
No — GODFATHER'S PIZZA's 2025 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.
How often do SBA loans for GODFATHER'S PIZZA franchises default?
Across 64 SBA-backed loans to GODFATHER'S PIZZA franchisees since 1991, 10 of the 56 that have resolved were charged off — a 17.9% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.