A47/100FDD 2024
Boss’ Pizza & Chicken — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
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
47 / 100
FranchiseVerdict composite
Rating
STRONG
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
169
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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
South Dakota
State whose law governs disputes — relevant if you're not based there
What drove the 47/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $1.1M average revenue claim — unable to verify profitability or validate ROI
- 02HIGHGoing Concern status is FALSE — suggests financial instability or uncertainty at franchisor level
- 03MINORWide investment range ($137K–$538K) with no clear breakdown — indicates inconsistent unit economics or hidden costs
- 04MEDOnly 10 units system-wide with 66.7% YoY growth — extremely small franchise with limited proven track record and scalability questions
- 05MINORRoyalty structure on 'Gross Sales' (not Net) at 5% compounds margin pressure in thin QSR industry (typically 6–9% net margins)
- 06HIGHNo litigation disclosure provided — unable to assess franchisor or franchisee dispute history
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.