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A43/100FDD 2025

Big Whiskey’s American Restaurant & Bar — 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
43 / 100
FranchiseVerdict composite
Rating
STRONG
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
Missouri
State whose law governs disputes — relevant if you're not based there

What drove the 43/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial performance representation disclosed — cannot independently verify the $2.7M average revenue claim across all 28 units
  2. 02MINORExplosive 46.2% YoY unit growth is unsustainable and may indicate aggressive recruitment masking underlying unit economics or franchisee struggles
  3. 03MINORHigh capital requirement ($1.27M–$4M) combined with 5% royalty creates significant fixed cost burden; breakeven analysis unclear
  4. 04MEDOnly 28 units system-wide suggests limited track record and vulnerability to market downturns or leadership changes
  5. 05MINORFranchise fee ($50K) is low relative to investment size, which may reflect weak brand equity or underpricing to drive recruitment

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.