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A54/100FDD 2025

Bobablastic — 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
54 / 100
FranchiseVerdict composite
Rating
STRONG
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
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
Washington
State whose law governs disputes — relevant if you're not based there

What drove the 54/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Revenue/Net Income) disclosed — impossible to assess ROI or profitability
  2. 02HIGHGoing Concern status is FALSE — suggests financial viability concerns at corporate level
  3. 03MINORModest unit growth of 14.3% YoY with only 73 locations — indicates slow system expansion and market saturation risk
  4. 04MINOR10% royalty on gross sales is high relative to average franchise fee ($15k) — cash flow pressure on struggling locations
  5. 05HIGHNo disclosed litigation but Going Concern flag implies potential undisclosed disputes or financial stress

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.