FranchiseVerdict
Café 86 logo
A49/100FDD 2025

Café 86 — Litigation & Risk

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

Back to overview

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
49 / 100
FranchiseVerdict composite
Rating
STRONG
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there

What drove the 49/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (average unit revenue and profitability completely hidden)
  2. 02MINORExplosive unit growth of 233% YoY suggests either unsustainable scaling or aggressive recruitment masking underlying weakness
  3. 03MINORHigh initial investment range ($229.5K-$467.7K) without transparent earnings data creates profitability uncertainty
  4. 04MEDOnly 17 units total indicates very early-stage system with limited track record and high failure risk
  5. 05MED6% royalty on undisclosed gross sales means franchisees cannot validate ROI projections

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.