F96/100FDD 2025
Crave Cookies — Litigation & Risk
Food & Beverage - Bakery · FDD Items 3, 4 & 5
Moderate — Review
3 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
96 / 100
FranchiseVerdict composite
Rating
AVOID
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
12
Government-backed loans issued
Default rate
50.0%
vs <3% typical · system-wide
5-yr default rate
50.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$4.2M
Avg loan size
$348K
Participating lenders
11
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
Utah
State whose law governs disputes — relevant if you're not based there
What drove the 96/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 financial disclosures (Avg Revenue and Net Income not disclosed) prevents ROI validation and comparability across units
- 02MINORPending arbitration with D&G Ownership Group suggests current franchisee disputes; outcome and nature of claims unknown
- 03MED67% YoY unit growth appears strong but absolute unit count of 37 indicates early-stage system with limited operational track record and higher failure risk
- 04MEDHigh initial investment range ($327k–$704k) with undisclosed profitability creates misalignment between capital required and potential returns
- 05HIGHTwo litigation cases (one pending, one won by franchisor) indicate franchisee-franchisor relationship friction despite small unit base
- 06MINOR6% royalty on unreported gross sales lacks benchmarking; unclear if sustainable given unknown unit economics
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.