F79/100FDD 2023
Burger Village — 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
79 / 100
FranchiseVerdict composite
Rating
AVOID
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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 79/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates potential financial distress or structural instability at corporate level
- 02MINOROnly 7 units system-wide suggests minimal scale, unproven business model, and high risk of system collapse
- 03MINORNo Item 19 (Average Revenue/Net Income) disclosure — impossible to validate ROI claims or unit economics
- 04MEDHigh investment range ($483.5K–$801.5K) with no disclosed profitability data creates blind ROI analysis
- 05MINORUnknown growth trajectory with minimal unit base suggests stagnant or declining franchise system
- 06MED10-year term is longer than typical (5–7 years), locking capital into unproven concept with limited reference base
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.