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F80/100FDD 2025
Chaiwale & Co. — Litigation & Risk
Food & Beverage - Coffee & Tea · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
80 / 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
Wyoming
State whose law governs disputes — relevant if you're not based there
What drove the 80/100 rating
Risk Score Breakdown
- 01HIGHGoing concern status is FALSE — indicates potential insolvency or financial distress at corporate level
- 02HIGHTwo active lawsuits involving founders (fraud allegations related to Pie Hole dissolution + breach of contract/trademark dilution) suggest governance and legal exposure
- 03MINOROnly 1 unit in system with unknown growth trajectory — no track record of scalability or franchisee success replication
- 04HIGHHigh investment range ($211K-$579.5K) coupled with single unit and litigation creates severe risk asymmetry
- 05HIGHFraud allegations in litigation directly undermine franchisee trust and corporate credibility
- 06MINORNo Item 19 financial performance representation available to validate $616K avg revenue claim
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.