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D72/100FDD 2025

Bobby’s Burgers by Bobby Flay — 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
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
1 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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 3 units in system with unverified 100% YoY growth claim (could mean growth from 1-2 units, representing minimal absolute expansion)
  2. 02MINORNo average revenue or net income disclosure (Item 19) — inability or unwillingness to provide financial performance data is critical red flag
  3. 03MINORExtreme investment range ($559K-$3.1M) with no explanation of variable cost drivers, suggesting poor standardization or hidden costs
  4. 04HIGHGoing Concern status is FALSE, meaning potential financial viability questions about franchisor operations
  5. 05MINORNo protected territory in QSR space where foot traffic competition is fierce
  6. 06MINOR6% royalty on Net Sales (not Gross) is unusual and suggests potential accounting manipulation or franchisor cash flow concerns
  7. 07MINORMicro-brand leveraging celebrity name without transparent unit economics or proven replicability
  8. 08MINOR$40K franchise fee is low relative to build-out costs, suggesting franchisor may rely heavily on royalties from struggling units

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.