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B65/100FDD 2025

Desi Chowrastha — 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
Governing law
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (avg revenue/net income) makes ROI impossible to validate
  2. 02HIGHGoing Concern = False indicates financial instability or undisclosed corporate restructuring risk
  3. 03MEDOnly 12 units system-wide suggests minimal scale, limited support infrastructure, and high failure concentration risk
  4. 04MINORWide investment range ($556.5K–$2.34M) with no corresponding revenue data creates opacity around unit economics
  5. 05MEDNo disclosed unit growth trajectory raises questions about system viability and franchisee recruitment
  6. 06MED4% royalty on undisclosed revenue base makes ongoing cost burden unquantifiable

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.