item 2 analysis for pilar coffee bar franchise
Franchise Disclosure Document Item 2: business experience
Overview
Item 2 of the Franchise Disclosure Document (FDD) outlines the professional backgrounds of the franchisor’s executive team going back five years. It’s meant to give prospective franchisees confidence that the leadership has the operational knowledge and franchise experience to support a growing brand. In the case of Pilar Coffee Bar & Iced Treats, the executive bios raise serious concerns about operational focus, system integrity, and the depth of franchise experience within the team. It is important to note that in the case of Pilar Coffee Bar’s Item 2, all of the individuals listed show experience going far past the five-year requirement.
What We Found in Item 2
Stephen Giordanella – CEO
Mr. Giordanella is listed as having current or past managerial roles in over 30 different LLCs, most of which are tied to Mac and Cheese Franchise Operations, Cabo Flats, and related entities. This includes:
Pilar Operations, LLC
RIT Group, LLC
Mac and Cheese Franchise Group, LLC
Mac and Cheese Franchise Management, LLC
Numerous Mac and Cheese-branded entities operating in various U.S. cities
Cabo Flats entities (now mostly dissolved or inactive)
🔎 Notably, despite Pilar Deerfield, LLC being believed to operate the flagship Pilar Coffee Bar location, Mr. Giordanella’s biography does not mention this entity. Given his involvement with dozens of related companies, its omission raises questions about why this cornerstone of brand credibility is excluded.
Concern: This volume of entity involvement signals a leader deeply embedded in a franchise-launch-and-license model. The ability to actively lead, support, and grow a new franchise brand while managing this many companies is highly questionable.
🔎 Independent reviews of Mac and Cheese Franchise Operations, LLC show franchisee litigation, closures, and complaints related to lack of support and misrepresentation.
Kevin D. Ayers – Vice President and General Counsel
Mr. Ayers has served as counsel for multiple affiliated brands and previously worked with YCA Franchising, Inc. and a consulting firm. His background includes both private legal practice and in-house roles in franchising.
Concern: While legal experience is evident, there is little in the way of operational franchise support or industry leadership credentials. His role appears more focused on contract structuring and brand protection than on franchisee advocacy or system development.
Joseph Amodio – Vice President of Franchise Development
Mr. Amodio is described as having extensive experience in franchise sales and development, including roles at Dickey’s BBQ and as the President of Fransales, Inc. since 1990. He has also served as the Vice President of Franchise Development for Mac and Cheese Franchise Group, LLC since December 2018.
However, notable omissions in his biography raise concerns. It fails to disclose his prior role as an Area Developer for Tilted Kilt Pub & Eatery, as well as his franchise sales experience with Huddle House, both material to understanding his full history in the franchise space. This selective presentation of his background may be designed to present a more favorable narrative while omitting affiliations with other volatile or troubled franchise systems.
Concern: While Mr. Amodio has experience selling franchises, his background suggests a strong emphasis on franchise expansion — not franchisee success. The absence of material affiliations in his biography underscores the need for deeper due diligence. Sales expertise does not necessarily translate to sustainable franchisee success. This background suggests a strong push toward rapid network expansion without assurance of long-term support or system performance.
Delia Valles – Director of Finance
Ms. Valles has served in financial and managerial roles across many of the same entities as Mr. Giordanella. Her experience spans both the Mac and Cheese and Cabo Flats brand ecosystems.
🔎 Ms. Valles’ Item 2 biography also omits any reference to Pilar Deerfield, LLC, an entity believed to operate the flagship store. This absence suggests either a lack of involvement in the brand’s core operation or a deliberate effort to distance executive leadership from front-line execution.
Concern: Like Mr. Giordanella, Ms. Valles’ extensive involvement in dozens of companies points to a leadership style that manages from a distance, with broad financial oversight but limited brand-specific focus.
Carlos “Max” Gonzalez – Director of Operations
Mr. Gonzalez previously held operational roles with the Cabo Flats restaurant group and has served as Director of Operations for Mac and Cheese Franchise Operations, LLC since 2017.
🔎 His biography omits a key role: serving as the Food and Beverage Director at Wellington Equestrian in Wellington, FL from June 2012 to October 2015. This relevant hospitality experience may provide helpful context, but its exclusion raises concerns about transparency and the selective nature of disclosures.
🔎 Mr. Gonzalez, who would presumably be responsible for overseeing Pilar's operations, also does not list Pilar Deerfield, LLC in his biography. This omission is concerning, particularly if that location is being used as a reference point for franchise sales.
Concern: While operational experience exists, it is tied to affiliated brands with known franchisee dissatisfaction. The effectiveness of operations under his direction is unknown and should be verified with franchisees directly.
Reality Check Summary
The leadership team behind Pilar Coffee Bar & Iced Treats has deep ties to a network of franchise brands and entities that share common ownership, management, and headquarters. While they have experience launching brands and selling franchises, their operational track record is mixed at best — and deeply concerning at worst.
None of the executives are shown to have experience running a successful coffee or bakery brand
Executive bandwidth appears spread thin across dozens of companies
Franchisee experience and outcomes under this team’s leadership are not disclosed and must be independently verified
Item 2 gives the appearance of franchise expertise, but masks a model focused on expansion through franchise fees
Because once you sign, it is too late for a reality check.
This report is based on publicly available documents, court filings, and the franchisor’s Franchise Disclosure Document (FDD) as filed with the State of Illinois. Interpretations, observations, and conclusions drawn herein represent the informed opinions of Franchise Reality Check and are intended to encourage deeper due diligence by prospective franchisees. This content should not be construed as legal, financial, or investment advice. Prospective investors should consult with a qualified franchise attorney and CPA before making any franchise purchase decisions.
As a franchisee or potential franchisee you might be wondering why a franchisor would structure their business experience the way Kevin Ayers has according to Item 2 of this FDD. We certainly did, and we asked ChatGPT the same question. Here was the response:
“Franchisors often craft the Item 2 bios in the FDD very deliberately, not just to meet legal requirements, but to shape how prospective franchisees perceive the credibility of the leadership team.
In the case of Pilar Coffee Bar, here are some reasons why the franchisor may have structured the business experience disclosures the way they did:
🔍 1. Highlight Roles That Sound Impressive — Even if They're Superficial
The bios are stacked with executive titles like “CEO,” “Manager,” and “Director,” across dozens of LLCs. This makes the leadership appear highly accomplished, even if those roles don’t reflect day-to-day operations or successful outcomes.
Why?
It gives the illusion of scale, stability, and experience — especially appealing to first-time franchisees.
🔍 2. Omit Experience That Could Trigger Concern
Several material experiences are missing:
Tilted Kilt and Huddle House affiliations (for Joseph Amodio)
Wellington Equestrian (for Carlos Gonzalez)
Pilar Deerfield, LLC — the entity believed to operate the flagship location — is left out of every executive’s background
Why?
Some past affiliations may involve failed brands or lawsuits
Omitted roles may contradict the narrative of a clean, focused franchise concept
Including the flagship entity would invite questions about operational performance and why it is not more prominently disclosed elsewhere
🔍 3. Avoid Linking Executives to Poor Outcomes in Other Brands
Executives like Stephen Giordanella and Delia Valles are deeply tied to I Heart Mac & Cheese and Cabo Flats — both of which have experienced losses, litigation, or closures and, in the case of I Heart Mac & Cheese, pervasive franchisee dissatisfaction.
Why?
By listing only active roles and excluding context, the franchisor avoids connecting leadership to brands with troubled reputations.
🔍 4. Project Depth Through Volume, Not Results
The bios often read like a laundry list of LLCs. This strategy inflates perceived experience while avoiding any claim of success or measurable performance.
Why?
It meets FTC disclosure rules without having to prove these roles led to profitable or scalable outcomes. It’s experience in title only.
🔍 5. Control the Narrative for Franchise Sales
Everything disclosed in Item 2 will be scrutinized by attorneys and sophisticated buyers. By overloading it with technical roles and omitting controversial details, the franchisor:
Stays compliant with basic requirements
Avoids transparency that could hurt conversions
Keeps franchise sales reps armed with a simplified, favorable story
📌 Bottom Line:
Item 2 is designed not to inform, but to persuade while staying compliant. The way this team structured their bios appears to be less about telling the whole story, and more about shaping a risk-averse, expansion-friendly image.”
Next installment in the Reality Check Report will focus on Item 3 of the Pilar Coffee Bar FDD, the biggest bombshells yet. Stay tuned!
