B61/100FDD 2026
Angelina Italian Bakery — Litigation & Risk
Food & Beverage - Quick 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
61 / 100
FranchiseVerdict composite
Rating
MODERATE
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
4
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$5.4M
Avg loan size
$1.3M
Participating lenders
2
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 61/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is False — indicates potential financial instability or undisclosed operational challenges at corporate level
- 02MEDNet Income not disclosed — inability to verify actual profitability; average revenue of $2M does not guarantee positive returns after 5% royalties, COGS, labor, and rent
- 03MINORNo protected territory — franchisees face direct competition from other Angelina locations and potential cannibalization within same market
- 04MINORHigh investment range ($515K–$1.9M) with unverified return metrics — ROI timeline and payback period unclear
- 05MINOROnly 9 units with 100% YoY growth is modest — suggests either very recent launch or slow, cautious expansion (maturity concerns or unit quality issues)
- 06MINOR10-year term locks franchisee into relationship with financially opaque franchisor
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.