A49/100FDD 2025
Abu Omar Halal — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
49 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 49/100 rating
Risk Score Breakdown
- 01MINORUnknown unit growth trajectory with only 22 locations raises questions about system expansion viability and franchisee recruitment success
- 02MINORNo Item 19 (Financial Performance Representations) disclosure limits ability to validate the $735,738 average revenue claim across all franchisees
- 03MINORHigh investment range ($361k-$795k) with 21% net margin requires strong unit economics validation across varying locations and performance tiers
- 04MEDRoyalty burden of 6% on gross sales combined with typical QSR operating costs (food ~28-30%, labor ~30%) leaves limited margin for error
- 05MEDSmall franchise system size (22 units) indicates limited brand recognition, purchasing power, and operational support infrastructure
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.