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D72/100FDD 2025

Blue Martini — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
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

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
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$5.0M
Avg loan size
$5.0M
Participating lenders
1

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

What drove the 72/100 rating

Risk Score Breakdown

  1. 01HIGHActive litigation involving wrongful death and alcohol service liability with anticipated refiling in June 2025 creates significant legal and insurance exposure
  2. 02MEDOnly 8 units system-wide with no disclosed growth trajectory suggests minimal scale, limited support infrastructure, and potential system viability concerns
  3. 03MEDNo average revenue or net income disclosure (missing Item 19) prevents financial performance validation and suggests weak unit economics
  4. 04MEDHigh investment range ($3.39M–$12.99M) combined with undisclosed profitability creates severe ROI uncertainty
  5. 05HIGHPending litigation could trigger insurance rate increases, policy cancellations, or franchisor indemnification obligations affecting franchisee margins
  6. 06MINORAlcohol service liability in 8-unit system indicates inadequate risk management protocols and compliance training infrastructure

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.