A45/100FDD 2025
Amorino — Litigation & Risk
Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
45 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
9
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$3.5M
Avg loan size
$386K
Participating lenders
6
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
Delaware
State whose law governs disputes — relevant if you're not based there
What drove the 45/100 rating
Risk Score Breakdown
- 01HIGHLitigation history: December 2022 lawsuit alleging fraudulent misrepresentation and breach of contract, settled with franchisee paying $16,906 and terminating agreement — suggests potential disclosure or operational issues
- 02MINORHigh investment ceiling ($980,500) combined with modest average net income ($127,849) yields concerning 7.6-year payback period at upper range, increasing financial risk exposure
- 03MEDModest unit growth (22.2% YoY) on small base (22 units) indicates early-stage franchise system with limited operating history and scale; growth rate may not be sustainable
- 04MINORNo royalty model creates unclear franchisor revenue stream and potential incentive misalignment between franchisor support and franchisee success
- 05MINORItem 19 (financial performance representation) absence prevents verification of claimed average revenue/net income figures across entire franchisee population
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.