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A49/100FDD 2025

Dessert Mango Mango — 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
49 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

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

What drove the 49/100 rating

Risk Score Breakdown

  1. 01MEDNet Income not disclosed in FDD Item 19 — inability to verify actual profitability claims against $655,872 average revenue
  2. 02MEDSlow unit growth of 3.8% YoY with only 36 total units suggests limited brand momentum and market validation
  3. 03MEDHigh initial investment range ($340K–$596K) paired with undisclosed net income creates unclear ROI timeline
  4. 04MEDAnnual minimum Gross Sales requirement tied to 4% royalty introduces financial risk if revenue fluctuates seasonally or declines
  5. 05MINOR5-year term is shorter than industry standard (10 years), requiring earlier renewal decision and higher turnover risk

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.