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B65/100FDD 2025

Chiddy’s Cheesesteaks — 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
65 / 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
New York
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure — cannot verify if $167k-$397k investment generates positive ROI
  2. 02MINOROnly 5 units system-wide with unknown growth trajectory suggests minimal scale and unproven model
  3. 03MINORUnprotected territory creates risk of direct competition from other franchisees in same market
  4. 04MINOR6% royalty on gross sales (not net) means franchisee pays during unprofitable periods
  5. 05MINORWide investment range ($230k spread) indicates inconsistent build-out costs or hidden variables
  6. 06MEDNo disclosed average revenue or net income — transparency concerns typical of early-stage franchises

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.