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D75/100FDD 2024

Country Kitchen — 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
39
Government-backed loans issued
Default rate
21.1%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
8 loans
Loans charged off or defaulted
Total loan volume
$17.0M
Avg loan size
$437K
Participating lenders
26

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Wisconsin
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess ROI or validate $415k-$1.67M investment viability
  2. 02MEDOnly 20 units system-wide indicates minimal scale, limited support infrastructure, and high systemic failure risk
  3. 03HIGHGoing Concern status is FALSE — suggests the franchisor itself may face financial or operational viability issues
  4. 04MINORUnprotected territory creates direct competition risk; franchisees can cannibalize each other's revenue
  5. 05MINORUnknown unit growth trajectory — no clarity on system expansion, stability, or franchisee success rates
  6. 06MINORWide investment range ($415k-$1.67M, 304% spread) suggests inconsistent unit economics or poor cost controls
  7. 07MED4-5% royalty on undisclosed revenues means franchisees cannot validate whether royalty burden is sustainable

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.