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B63/100FDD 2025

Agapé — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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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
63 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINOROnly 5 units in system with unknown growth trajectory suggests early-stage or stalled expansion
  2. 02HIGHNo going concern status disclosed raises questions about franchisor financial stability and long-term viability
  3. 03MINORHigh initial investment ($472.5K-$577K) relative to small unit count increases risk of inadequate support infrastructure
  4. 04MEDRoyalty structure (5% of gross sales) on average $1.2M revenue = $60K annual fee with no disclosed Item 19 financial performance data
  5. 05MINORCannot validate claimed $192K average net income without audited financials or franchisee attestation
  6. 06MEDExtremely limited comparable data (5 units) makes statistical analysis meaningless for ROI projections

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.