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B59/100FDD 2025

Chicken Guy! — 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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$4.0M
Avg loan size
$4.0M
Participating lenders
1

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
1 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 59/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 disclosure (average revenue and net income) prevents ROI validation and suggests potential underperformance or franchisor unwillingness to disclose
  2. 02MINORWide investment range ($764.5K–$3.02M) indicates high variability in startup costs with no clear cost drivers or transparency
  3. 03MINORSmall unit base (11 locations) creates concentration risk; 33.3% YoY growth may not be sustainable and represents minimal proof of concept
  4. 04HIGHGoing Concern status is False, suggesting potential franchisor financial distress or structural concerns at corporate level
  5. 05MED6% royalty on undisclosed gross sales creates opaque ongoing costs with no benchmark for profitability thresholds
  6. 06HIGHLack of litigation disclosure combined with small footprint may indicate inadequate franchisee base or young brand maturity

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.