Boston's The Gourmet Pizza: Litigation & Risk
Full-Service Restaurants · FDD Items 3, 4 & 5
Moderate: Review
4 cases disclosed in FDD Items 3 and 4.
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 4
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 46 / 100
- FranchiseVerdict composite · higher is better
- Rating
- C
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 10
- Government-backed loans issued
- Charge-off rate
- N/A
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- 1 loans
- Loans charged off or defaulted
- Total loan volume
- $14.1M
- Avg loan size
- $1.4M
- Participating lenders
- 10
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
- Right of first refusal
- Yes
- Franchisor can match any purchase offer when you try to sell
- Governing law
- Texas
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
Four disclosed matters: (1) Patel v. Boston's (2019) - franchisee sued over development agreement dispute, settled for $5,000 paid by Boston's; (2) Boston's v. Kaushal (2020) - franchisor sued ex-franchisee for $205,000 liquidated damages, dismissed without prejudice; (3) Boston's v. BOSTCG/Patel (2023) - franchisor sued for $271,947 liquidated damages, settled for franchisee paying Boston's $85,000; (4) Boston's intends to arbitrate against Arjan, LLC and guarantors for $381,664.95 in unpaid royalties/fees/damages.
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.