Villa Pizza Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$302,950 - $1,016,000
Franchise Fee
$20,000
Total US Locations
64
Business Summary
Villa Pizza, LLC franchises quick-service restaurants under names such as Villa Pizza, Villa Fresh Italian Kitchen, Villa Italian Kitchen, and Tony + Benny's. These establishments primarily serve pizza, pasta, and other Italian menu items. The restaurants are typically located in high-traffic areas like shopping mall food courts and airport food courts, catering to both lunch and dinner crowds.
Corporate History
The Villa Pizza brand and restaurant operations trace back to 1964 through its affiliate, Villa Enterprises Management Ltd., Inc. The franchising of Villa Pizza restaurants began in February 1997 under a predecessor entity, Villa Pizza, Inc. This predecessor reorganized into the current franchisor, Villa Pizza, LLC, in January 1999, and then Villa Pizza, LLC formally started offering single restaurant franchises in October 1999. The franchising program for the Tony + Benny's brand was initiated later in August 2016. Villa Holding, an affiliate, owns the proprietary marks and licenses them to Villa Pizza, LLC for use in the franchise system.
Financial Overview
Investment Range
$302,950 - $1,016,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$250,000
Equipment Costs (High)
$825,000
Working Capital
$10,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Villa Pizza, LLC appears to have a stable financial position. The company has consistently generated net income, reporting $1,279,745 in 2024, $1,479,721 in 2023, and $913,828 in 2022. Cash flow from operating activities has also been strong, at $1,277,986 in 2024, $1,450,148 in 2023, and $801,486 in 2022. However, cash and cash equivalents decreased from $1,217,927 in 2023 to $748,517 in 2024, largely due to significant distributions to members of $1,725,000 in 2024 and $1,800,000 in 2023. Members' equity also decreased from $1,189,963 in 2023 to $744,708 in 2024. The auditors issued an unqualified opinion on the financial statements and did not raise any going concern qualifications, indicating the company's financial statements are presented fairly and there is no substantial doubt about its ability to continue operations.
Financing Details
Villa Pizza, LLC does not offer any direct or indirect financing to franchisees. The company or its affiliates do not receive payments for placing financing with lenders. However, Villa Pizza, LLC will cooperate with Small Business Administration (SBA) approved lenders and will assist franchisees in processing SBA funding through any approved lender. While Villa Pizza, LLC does not customarily guarantee franchisee notes, leases, or other third-party obligations, an affiliate has, on occasion, provided limited guarantees on leases in specific situations, although there is no obligation for them to do so.
Performance Metrics
Total US Locations
64
Franchised Units
36
Corporate Units
28
Avg Square Footage
1,425
Franchising Since
1997
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
9
Litigation Summary
Villa Pizza, LLC has been involved in several litigation cases, with a total of 9 cases disclosed in Item 3 of the FDD. Currently, one case is pending: Passion for Restaurants, Inc. v. Villa Pizza, LLC, filed in February 2023, where the franchisee alleges breach of the Franchise Agreement due to misrepresentation of trademark registration in Egypt, seeking $362,000 in damages. Villa Pizza, LLC has counterclaimed for unpaid royalties and goodwill damage. Another recent development includes a lawsuit filed in January 2021 by Ameream LLC against an affiliate for monetary recovery concerning leases, which was dismissed in favor of Villa Pizza Enterprises after trial in August 2024. Past cases include a November 2017 settlement with a franchisee, Demopolis Shell, LLC, for claims of New Jersey Consumer Fraud Act violations, common law fraud, and negligent misrepresentation, resulting in Villa Pizza, LLC paying $60,000 and agreeing to royalty reductions. In January 2019, the Attorney General of the State of Washington initiated an investigation related to employee non-compete clauses, which Villa Pizza, LLC resolved by entering into an Assurance of Discontinuance without admitting wrongdoing. Villa Pizza, LLC has also initiated several lawsuits against franchisees for unpaid royalties and breach of contract. These include a February 2010 case against Park Mall Pizza Systems, Inc., which resulted in a final judgment of $738,872.99 for Villa Pizza, LLC in 2013, followed by another judgment in 2015 to pierce the corporate veil. In an October 2016 case against Fast Casual Enterprises, LLC, Villa Pizza, LLC obtained a default judgment of $239,544.78 against one defendant and settled with others. Additionally, Villa Pizza, LLC filed lawsuits in June 2021 against 1314 Food Services, Inc. and Demopolis Shell, LLC for unpaid royalties, with the former settling and the latter resulting in a default judgment of $1,132,372.72 for Villa Pizza, LLC. An August 2021 case against Asif Shahzad for unpaid royalties also reached a settlement.
Bankruptcy History
Villa Pizza, LLC's President, Biagio Scotto, was also president of Villa Pizza Specialties, Inc., a Texas corporation that operated one store. This entity filed for Chapter 11 bankruptcy (case number 15-31057) in the United States Bankruptcy Court – District of New Jersey. This bankruptcy case was closed on February 14, 2017. Villa Pizza, LLC itself has no other reportable bankruptcy history.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew, Villa Pizza, LLC franchisees must provide written notice between 9 and 12 months before their agreement expires. They must be in good standing, without any uncured defaults at the time of renewal, and must not have had any defaults throughout the initial term, even if cured. Franchisees are also required to sign Villa Pizza, LLC's then-current franchise agreement and other related legal documents, including a general release and personal guarantees from owners, which may have materially different terms. A renewal fee, equal to 50% of the then-current initial franchise fee, is also required. Additionally, franchisees must maintain possession of their premises, ensure their lease extends beyond the renewal term, and upgrade their restaurant to meet Villa Pizza, LLC's current design and operational standards.
Training & Support Program
Franchisor Assistance
Villa Pizza, LLC provides a range of assistance to its franchisees. Before opening, Villa Pizza, LLC helps with choosing and evaluating a suitable location, and guides the development of the restaurant by providing specifications for inventory, equipment, and design elements. Initial training, lasting three to five weeks, is provided to the franchisee or principal owner and the full-time Restaurant Manager. Franchisees also receive a confidential Operations & Training Manual. After the restaurant opens, Villa Pizza, LLC offers ongoing operational assistance, including guidance on food preparation, menu development, advertising, and the evaluation and testing of new food developments. They also furnish additional instructional and training materials, as well as other business information and literature, to help franchisees improve their restaurant operations.
Initial Training Hours
145
Training Location
Paramus, NJ or Orlando, FL or other certified training centers in the U.S.
Ongoing Support
Villa Pizza, LLC provides ongoing assistance after a franchisee's restaurant opens. This includes periodic operating assistance regarding the system, such as guidance on food preparation, menus, recipes, advertising, promotions, and the evaluation and testing of new food developments. Villa Pizza, LLC also furnishes additional instructional and training materials, as well as other business information and literature, to help franchisees improve their restaurant operations. The franchisor reserves the right to charge for additional assistance and ongoing training if needed.
Franchise Requirements
Ideal Candidate Profile
Villa Pizza, LLC seeks qualified individuals with strong management skills, experience, and business acumen to operate its restaurants. The ideal candidate is either an exceptional employee or associate with a proven track record, or a business-minded individual capable of dedicating full-time, hands-on effort to managing the restaurant. For area developers, the operating partner must have substantial restaurant management and operational experience, including previous training, and must be able to provide day-to-day oversight of the restaurants while holding at least a 10% direct economic ownership interest.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Villa Pizza, LLC does not grant its franchisees an exclusive territory. Franchisees are granted the right to operate a single restaurant at a specific location approved by Villa Pizza, LLC. Villa Pizza, LLC retains the unfettered right to own, operate, and license others to own and operate Villa Pizza, Villa Fresh Italian Kitchen, Villa Italian Kitchen, and Tony + Benny's restaurants anywhere, including in the vicinity and market area of a franchisee's restaurant. Therefore, there are no defined territory size requirements for Villa Pizza, LLC franchisees.
Staffing Notes
Villa Pizza, LLC requires that its restaurants always be under the direct supervision of a full-time Manager, who may be the franchisee, and who must have successfully completed the franchisor's training program. Franchisees are entirely responsible for all employment decisions for their restaurant, including hiring, firing, compensation, and personnel policies, even if they receive advice from Villa Pizza, LLC. Franchisees must also implement employee training programs that align with Villa Pizza, LLC's prescribed standards and procedures, and maintain a trained staff sufficient to operate the restaurant.