Westside Pizza Franchise Disclosure Document Analysis

System Unit Decline Signals Weak Network Growth Over Three Years

Total system outlets declined from 36 at year-end 2022 to 34 at year-end 2024, reflecting a net loss of 2 units over three years with no year showing meaningful growth. In 2024 alone, franchised outlets declined from 31 to 29, including terminations and non-renewals in California and Texas.

Source: p.58

Renewal Requires Then-Current Agreement With Potentially Different Terms

Upon renewal, franchisees must sign WPI's then-current franchise agreement, which may contain materially different fees, territory rights, or operational standards, and must also sign a general release of all claims against WPI and pay a $7,500 successor fee.

Source: p.50

Broad Post-Term Non-Compete Restricts Industry Participation

After termination or expiration, franchisees are prohibited for two years from operating or participating in any competing pizza business within 20 miles of their trade area or 15 miles of any Westside Pizza location anywhere in the system.

Source: p.52