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B64/100FDD 2023

Carousel’s — Litigation & Risk

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

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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
64 / 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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 64/100 rating

Risk Score Breakdown

  1. 01MEDNo average revenue or net income disclosed in FDD Item 19 — impossible to assess ROI or break-even timeline
  2. 02MINOROnly 9 units operating with 50% YoY growth suggests very early-stage system with minimal track record and unproven model scalability
  3. 03MINORMinimum weekly royalty of $125 ($6,500/year) creates fixed cost burden regardless of sales performance, problematic for struggling locations
  4. 04MEDInitial investment range of $75,750–$99,750 appears high relative to unit count and lack of disclosed profitability data
  5. 05MINOR10-year term is relatively long commitment given system immaturity and absence of performance benchmarks

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.