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B65/100FDD 2025

Baba's Halal — 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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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
Maryland
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDOnly 3 operating units suggests extremely limited system scale and unproven model replicability
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents proper ROI validation and raises transparency concerns
  3. 03HIGHGoing Concern status is FALSE, indicating potential financial instability or recent restructuring at corporate level
  4. 04MEDHigh initial investment ($143.5K–$221.8K) paired with undisclosed profitability creates asymmetric risk for franchisees
  5. 05MINOR6% weekly royalty on gross revenues (not net) is aggressive and provides no cushion during low-revenue periods
  6. 06MINORTiny franchise base (3 units) means no meaningful track record and high vulnerability to any unit failures

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.