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B62/100FDD 2025

Cluck Face — 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
62 / 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 62/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates potential financial instability or regulatory issues at corporate level
  2. 02MINOROnly 2 units in system with unknown growth trajectory — extremely small, unproven franchise model with no expansion momentum
  3. 03MEDNet Income not disclosed in FDD — inability or unwillingness to share profitability data is a major transparency red flag
  4. 04MINORWide investment range ($169K-$797K) suggests inconsistent unit economics or unclear cost structure
  5. 05MINOR7% royalty on $1.75M avg revenue = $122,500 annual corporate take per unit, but profitability unknown to franchisees
  6. 06HIGHNo litigation disclosed but Going Concern status suggests underlying operational or legal problems
  7. 07MINORTiny 2-unit system creates risk of franchisor collapse, leaving franchisees unsupported

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.