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D72/100FDD 2025

Denino’s — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 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
New York
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 4 units in system with unknown growth trajectory suggests stagnation or contraction
  2. 02HIGH2019 litigation involving fraudulent misrepresentation claims and confidential 2023 settlement raises transparency concerns
  3. 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation on $1M+ investment
  4. 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
  5. 05MINORHigh royalty floor of $1,000/week ($52,000 annually) creates cash flow burden regardless of sales performance
  6. 06HIGHGoing concern status indicates franchisor financial instability or operational uncertainty
  7. 07MEDHigh initial investment ($1M-$1.8M) paired with minimal system size and undisclosed profitability is unsustainable risk ratio

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.