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D72/100FDD 2025
Azal Coffee — Litigation & Risk
Food & Beverage - Coffee & Tea · 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
3 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
Michigan
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01MINOROnly 1 unit in system with unknown growth trajectory suggests brand is pre-revenue or failing to scale
- 02HIGHGoing Concern status is FALSE, indicating financial viability concerns at corporate level
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation
- 04MINORHigh initial investment ($283.5K-$440K) paired with unproven unit economics creates significant risk
- 05MED5% royalty on undisclosed sales means franchisee cannot model break-even or profitability
- 06MINORSingle unit means no franchisee network for support, referrals, or peer validation
- 07MED10-year term locks franchisee into unproven concept with limited exit options
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.