Carbone's Pizzeria and Carbone's Pizza

The system's trajectory shows maturity but stagnation: 31 franchised units plus 2 corporate as of the 2026 FDD, down 3% from 32 locations between 2024 and 2025, with just 1 projected new unit. This slight decline flags cooling expansion momentum in a pizza market dominated by giants, suggesting franchisees aren't rapidly multiplying. Item 7 outlines initial investments from $328,600 for smaller express/fast-casual formats (2,000-3,000 sq ft) up to $909,250 for full-service (2,500-4,000 sq ft), with a $25,000 franchise fee. Ongoing fees include a tiered royalty—4% on the first $1M in gross sales, dropping to 3% on the next $1M and 2% thereafter—plus 1% brand/ad fund, which keeps costs manageable for high performers but bites at lower volumes.

Item 19 reveals average gross revenues of $911,229 across reporting units, a solid figure for pizza that implies decent traffic from dine-in, carryout, and optional delivery/alcohol. However, SBA data tempers optimism: only 6 loans on record averaging $234,500, but a 16.7% default rate hints at financing strains or underperformance for some. For investors eyeing $900K+ revenue potential, the long history offers operational support, but the contracting footprint and elevated defaults mean scrutinizing local market fit—strong in Midwest casual dining, riskier elsewhere without proven scalability.