F84/100FDD 2024
Buck's Pizza — Litigation & Risk
Food & Beverage - Pizza · 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
84 / 100
FranchiseVerdict composite
Rating
AVOID
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
24
Government-backed loans issued
Default rate
22.7%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
5 loans
Loans charged off or defaulted
Total loan volume
$2.9M
Avg loan size
$120K
Participating lenders
17
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there
What drove the 84/100 rating
Risk Score Breakdown
- 01MINORSystem contracted 10% YoY (11 units down from ~12) indicating declining franchisee viability or brand weakness
- 02MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or assess profitability
- 03HIGHGoing Concern status is FALSE — suggests franchisor may have solvency, operational, or strategic uncertainties
- 04MEDWide investment range ($206.7K–$692.5K) with no disclosed average revenue/net income creates opacity around unit economics
- 05MED5% royalty on undisclosed gross sales means franchisees cannot benchmark expected cash flow against industry standards
- 06MINOROnly 11 units remaining limits brand recognition, supply chain leverage, and national marketing effectiveness
- 07MINOR10-year term is standard but risky given system contraction — difficult to recoup investment in shrinking concept
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.