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B65/100FDD 2025

Cowboy Jack’s — 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
65 / 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

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Revenue/Net Income) disclosed — impossible to assess unit economics or ROI potential
  2. 02MEDOnly 10 units system-wide indicates minimal scale, limited support infrastructure, and unproven model
  3. 03HIGHGoing Concern status is FALSE — suggests potential financial instability or operational concerns at franchisor level
  4. 04MINORWide investment range ($1.45M–$6.13M) with no revenue disclosure makes unit profitability assessment impossible
  5. 05MINORMinimum royalty of $2,300/month ($27,600/year) creates high fixed cost burden even for underperforming locations
  6. 06MINORUnknown unit growth trajectory — no clarity on system expansion, franchisee retention, or franchisee success rates
  7. 07MINORMinimal franchise fee ($45K) relative to total investment suggests franchisor may rely heavily on royalties for revenue

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.