FranchiseVerdict
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A51/100FDD 2026

Anchor Bar — 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
51 / 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
13
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$11.9M
Avg loan size
$919K
Participating lenders
8

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
1 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 51/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Net Income) disclosed - unable to validate profitability claims against $2.45M average revenue
  2. 02MINOROnly 17 units with unknown growth trajectory - insufficient scale and no visibility into system expansion or contraction
  3. 03HIGHGoing Concern status is FALSE - indicates franchisor may have financial/operational stability issues
  4. 04MINORHigh initial investment ($1.2M-$3M) with unvalidated return on investment creates substantial financial exposure
  5. 05MINOR5% royalty on gross revenues (not net) compounds risk if margins are thin - franchisees pay royalties even during losses
  6. 06HIGHNo disclosed litigation is a positive but combined with going concern issues suggests potential undisclosed disputes or financial distress

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.