B60/100FDD 2025
Baqba Mexican Grill — Litigation & Risk
Food & Beverage - Full 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
60 / 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
State where the Outlet is located
State whose law governs disputes — relevant if you're not based there
What drove the 60/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates potential financial/operational instability at franchisor level
- 02MEDZero disclosed franchise units with unknown growth trajectory — impossible to validate system health or franchisee success rates
- 03MINORNo Item 19 (Financial Performance Representations) provided — cannot verify if $395K avg net income is achievable or representative
- 04MINORWide investment range ($327.5K-$812.5K) with no clarity on variables driving 2.5x cost difference
- 05MEDHigh initial investment relative to disclosed average net income (83% ROI year 1 assuming full revenue, unlikely)
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.