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B60/100FDD 2025

Brooklyn Robot Foundry — Litigation & Risk

Other · 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
60 / 100
FranchiseVerdict composite
Rating
MODERATE
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
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

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MEDNo average unit revenue or net income disclosed (Item 19 missing) — impossible to assess ROI on $90k-$146k investment
  2. 02MINORExplosive 200% YoY growth with only 10 units suggests very early-stage system with unproven unit economics and high failure risk
  3. 03MINORMonthly royalty minimums ($240-$1,440 starting Month 7) create fixed cost burden regardless of revenue — franchisee must generate $3,429-$20,571 monthly revenue just to break even on royalties
  4. 04MINORWide investment range ($55k spread) indicates inconsistent startup costs and unclear fee structure
  5. 05HIGHNo litigation disclosed is positive, but small system size limits statistical relevance

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.