B65/100FDD 2025
Buona — 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
65 / 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
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
Illinois
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify if $551k avg net income is achievable or representative
- 02HIGHGoing Concern = False indicates parent company financial instability or uncertainty about franchisor's viability
- 03MINORWide investment range ($1.3M–$6.3M) with no clarity on what drives 5x cost variance or unit profitability differences
- 04MINORUnknown unit growth trajectory — 31 units is small; no disclosure of growth rate, closures, or turnover
- 05MINORModest 16.5% net margin (551k/3.3M revenue) leaves little buffer for underperformance or economic downturn
- 06MED4% royalty + operating costs may compress margins further if sales decline or foot traffic drops
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.