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F80/100FDD 2022

Apna Bazar — Litigation & Risk

Retail · 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
80 / 100
FranchiseVerdict composite
Rating
AVOID
STRONG / MODERATE / CAUTION / AVOID

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 80/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — franchisor may be financially unstable or operationally distressed
  2. 02MINORNo average revenue or net income disclosure (Item 19) — impossible to assess unit-level profitability or ROI
  3. 03MINOROnly 17 units with unknown growth trajectory — extremely small system with unclear expansion momentum
  4. 04MINORUnprotected territory — franchisees face direct competition from other franchisees and corporate locations
  5. 05MINORWide investment range ($1.5M–$6.58M) suggests inconsistent unit economics or unclear cost structure
  6. 06MINOR2.5% royalty floor of $5,000/month minimum is aggressive for small-revenue locations — $60K/year baseline burden
  7. 07MED20-year term is unusually long with no performance benchmarks or renewal criteria disclosed
  8. 08HIGHNo litigation disclosed but combined with Going Concern status raises transparency 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.