FranchiseVerdict
Beverly Ann’s Cookie Truck logo
B64/100FDD 2025

Beverly Ann’s Cookie Truck — Litigation & Risk

Other · FDD Items 3, 4 & 5

Back to overview

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
64 / 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
22
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
Kentucky
State whose law governs disputes — relevant if you're not based there

What drove the 64/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial disclosure (avg revenue and net income not disclosed) — impossible to validate ROI on $118k-$270k investment
  2. 02HIGHGoing Concern status is FALSE — indicates franchisor financial instability or operational viability concerns
  3. 03MINOROnly 1 operating unit — zero franchise system growth, no proof of scalability or replicable model
  4. 04MINORRoyalty structure appears unsustainably low ($3k-$5k annually) suggesting weak franchisor support infrastructure or cash flow problems
  5. 05MEDMobile food truck model has high operational costs (vehicle maintenance, fuel, permits, commissary) not offset by disclosed financials
  6. 06HIGHNo litigation disclosed but going concern flag suggests potential undisclosed legal/regulatory issues
  7. 07MINOR10-year term locks franchisees into relationship with unstable franchisor; no clear exit strategy

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.