D68/100FDD 2025
Cork and Candles — 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
68 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there
What drove the 68/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates material doubt about franchisor's ability to continue operations
- 02MINOROnly 4 units with unknown growth trajectory — suggests stalled or contracting system with minimal scale
- 03MINORNo Item 19 financial performance representation — cannot independently verify the $534,873 average revenue claim
- 04MINORHigh investment-to-net-income ratio — $283k-$378k investment yields only ~$190k net income (51-67% ROI over 10 years, ~5-6.7% annual)
- 05MINOR7% royalty on gross revenue is aggressive relative to candle/home décor industry norms (typically 4-6%)
- 06MINORMinimal franchise fee ($49,500) relative to total investment suggests franchisor relies heavily on royalties rather than sustainable unit growth
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.