FranchiseVerdict
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F80/100FDD 2025

Crooked Pint Ale House — 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
80 / 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
1
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$350K
Avg loan size
$350K
Participating lenders
1

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
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 80/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 6.7% YoY (14 units) indicates system contraction and potential viability concerns
  2. 02MINORNo net income disclosure despite Item 19 availability — inability or unwillingness to show profitability is a major red flag
  3. 03HIGHGoing Concern status = FALSE suggests franchisor may have disclosed material doubts about ability to continue operations
  4. 04MINORAverage revenue of $169,508 is critically low for a full-service restaurant; incompatible with $1.19M-$2.1M investment thesis
  5. 05MEDHigh investment requirement ($1.19M-$2.1M) paired with undisclosed/likely marginal net income creates severe ROI risk
  6. 06MEDSmall unit count (14) limits franchisee network support and suggests limited franchisor resources

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.