B63/100FDD 2024
Chocolate Fish Coffee Roasters — Litigation & Risk
Food & Beverage - Coffee & Tea · FDD Items 3, 4 & 5
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
63 / 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
Wyoming
State whose law governs disputes — relevant if you're not based there
What drove the 63/100 rating
Risk Score Breakdown
- 01MINOROnly 3 units system-wide indicates minimal scale, unproven model, and high risk of franchisor viability
- 02MEDNo disclosed net income data prevents ROI validation; $737K average revenue doesn't confirm profitability at unit level
- 03HIGHGoing Concern status is FALSE — suggests potential franchisor financial distress or uncertainty about business continuation
- 04MINOR6% royalty on unproven revenue model combined with $244K-$436K investment creates unclear payback timeline
- 05MEDExtremely limited franchisee pool (3 units) means minimal validation data and survivor bias in references
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.