FRANCHISE·WATCH·DESK

Verified — real FDD extraction

SBA-eligible · directory code S2659 since 2018

Carbone's Pizzeria and Carbone's Pizza

Food & Dining · independent · est. —

Carbone's Pizzeria is a pizza restaurant chain serving thin-crust pizza along with Italian-American dishes, sandwiches, and pasta, with both dine-in and takeout/delivery formats. It's a long-running regional pizza brand. A franchisee operates a pizzeria, running the kitchen and local delivery.

Carbone's Pizzeria and Carbone's Pizza net unit count declined -2.7% from 20192023 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

Proven & strong

Distress

0
STABLE

Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: owner turnover is low.

Exit rate · latest year

-5.7%

vs 8.6% across 137 food & dining systems

Cost to open

$151K–$328K

Item 7 total investment range

SBA loan defaults

Too few resolved

11 loans exist; too few resolved to rate

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Fair
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Strong
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2019–2023

-2.7%
372019372020372021372022362023

Survival record

FDD Item 20 · outlet status by year

In fiscal 2023, -2 of 35 franchised outlets left the system — a -5.7% 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
Status (FTC)20192020202120222023
Outlets at start3636373737
Opened22011
Transfers11130
Terminations00000
Non-renewals00000
Reacquired by franchisor00100
Ceased — other reasons1121-2
Outlets at end3737373736
Net change+1+100-1

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 11 SBA-backed loans to Carbone's Pizzeria and Carbone's Pizza franchisees since 2014. Most are still open, so there is not yet a resolved cohort large enough to rate.

Charge-off rate

6 resolved · too thin to rate

Loss given default

avg. charged-off $ ÷ approved $

Expected loss

default rate × loss severity

Avg. loan · FY2020+

$309,150

what recent franchisees borrowed

Median time to default

74 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

2 vs 5

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 CARBONE'S PIZZERIA AND CARBONE'S PIZZA BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

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 $151K–$328K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$151K–$328K

all-in investment range

Franchise fee (Item 5)

$25K

upfront, one-time

Royalty (Item 6)

4%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$40K

4% of sales, before profit

Over a 10-yr term

$400K

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 Carbone's Pizzeria and Carbone's Pizza with an independent CPA

Modeled risk

FDD Risk Score · modeled from the public record

Elevated

The public record puts this brand toward the middle of the systems we score — but the evidence is thin, so treat it as a range, not a number.

Risk percentile (range)

51–75 / 100

Directional

Modeled SBA charge-off

14.6%

Observed SBA charge-off

16.7%

Top drivers: System size (log units) (raises) · Item 20 exit rate (lowers) · Investment ceiling (log) (raises) · Net unit growth (raises). Thin loan history — treat this as a range, not a number. 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 Carbone's Pizzeria and Carbone's Pizza. That's a good sign — but it reflects news coverage, not a guarantee.

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Carbone's Pizzeria and Carbone's Pizza franchise questions, answered from the filings

What percentage of Carbone's Pizzeria and Carbone's Pizza franchises closed last year?

In Carbone's Pizzeria and Carbone's Pizza's latest FDD Item 20 (fiscal 2023), -2 of 35 franchised outlets left the system — an annualized exit rate of -5.7% — 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 Carbone's Pizzeria and Carbone's Pizza franchise cost?

Per Carbone's Pizzeria and Carbone's Pizza's 2023 FDD, buying in requires an initial franchise fee of $25K (Item 5) and a total initial investment of $151K–$328K (Item 7).

What royalty does Carbone's Pizzeria and Carbone's Pizza charge?

Carbone's Pizzeria and Carbone's Pizza charges an ongoing royalty of 4.0% of gross sales, per Item 6 of its 2023 FDD.

Does Carbone's Pizzeria and Carbone's Pizza disclose earnings (Item 19)?

Yes — Carbone's Pizzeria and Carbone's Pizza makes a financial performance representation in Item 19 of its 2023 FDD. Read it closely: franchisors choose which units and which metrics to include.

Is Carbone's Pizzeria and Carbone's Pizza a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk