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A52/100FDD 2026

Burger King — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

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Elevated Risk

14 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
14
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
52 / 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
275
Government-backed loans issued
Default rate
7.3%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
17 loans
Loans charged off or defaulted
Total loan volume
$196.1M
Avg loan size
$713K
Participating lenders
84

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
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 52/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess actual profitability or ROI on $348k-$3.3M investment
  2. 02MED19,900 units with unknown growth trajectory — lack of transparency suggests potential stagnation or decline in mature market
  3. 03MINORWide investment range ($348k-$3.3M) indicates highly variable unit economics and unpredictable capital requirements
  4. 04MEDRoyalty rates hidden in Item 6 without summary — suggests complex or potentially unfavorable fee structure not disclosed upfront
  5. 05HIGHNo going concern issues reported, but absence of average revenue/net income data prevents fundamental financial viability assessment

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.