B67/100FDD 2024
Comic Book Café — Litigation & Risk
Food & Beverage - Full Service · 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
67 / 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 67/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates franchisor financial distress or viability questions
- 02MINOROnly 1 unit in system with unknown growth trajectory — suggests failed expansion or brand collapse
- 03MEDNet income not disclosed — inability or unwillingness to provide profitability data is a major transparency red flag
- 04MINORHigh investment range ($432.5K–$936K) with no Item 19 financial performance data to justify ROI
- 05MED5% royalty on disclosed $3.2M average revenue = $160K annual royalties from single unit — unsustainably top-heavy structure
- 06HIGHNo litigation disclosed but going concern status suggests underlying operational or legal vulnerabilities
- 07MINORMassive gap between low and high investment estimates (117% variance) indicates undefined startup costs
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.