FranchiseVerdict
B65/100FDD 2025

Al Manakeesh — Litigation & Risk

Food & Beverage - Quick 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
65 / 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
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 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit operating — no franchise system growth or validation; impossible to assess scalability or franchisee success patterns
  2. 02HIGHGoing Concern status is FALSE — indicates franchisor financial distress or operational instability
  3. 03MEDNet income not disclosed — lack of financial transparency prevents ROI analysis; only gross revenue ($179,564) provided
  4. 04MINORHigh minimum royalty ($1,000/week = $52,000/year) represents 29% of average gross revenue — unsustainable for underperforming locations
  5. 05MINORMinimal franchisee base (1 unit) suggests either brand is brand new, failing, or franchisor cannot recruit/retain franchisees
  6. 06HIGHNo litigation disclosure provided — unclear if this means none exists or if information was withheld
  7. 07MINOR10-year term is long given unproven single-unit track record and franchisor stability concerns

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.