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D72/100FDD 2025

Black Rock Bar & Grill — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
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
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
Michigan
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 21.4% YoY (12 units) indicating system contraction and potential franchisee dissatisfaction
  2. 02HIGHActive litigation between franchisor and franchisees (trademark/breach suit + countersuit for tortious interference) signals operational/relationship issues
  3. 03MEDNet income not disclosed despite average revenue of $3.4M, raising profitability and transparency concerns
  4. 04MEDHigh investment range ($1.5M-$5M) combined with unit decline creates unfavorable risk-reward profile
  5. 05MINORCountersuit alleging tortious interference suggests franchisor may have damaged franchisee business relationships or operations
  6. 06HIGHNo going concern statement indicates financial stability questions at corporate level

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.