F82/100FDD 2025
Dickey's Barbecue Pit — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Elevated Risk
11 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
11
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
82 / 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
237
Government-backed loans issued
Default rate
34.3%
vs <3% typical · system-wide
5-yr default rate
25.0%
Defaults
58 loans
Loans charged off or defaulted
Total loan volume
$81.9M
Avg loan size
$346K
Participating lenders
84
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 82/100 rating
Risk Score Breakdown
- 01MEDUnit count declined 17.9% year-over-year (386 units), indicating system contraction and potential franchisee struggle
- 02HIGHMultiple franchisee litigation cases alleging breach of contract, fraud, and misrepresentation suggest systemic franchisor-franchisee relationship problems
- 03MINORNo average revenue or net income disclosure (Item 19) prevents ability to assess actual franchisee profitability and ROI
- 04MINORData security class-action settlement indicates operational/compliance vulnerabilities and potential reputational damage
- 05MINOR20-year term is unusually long and locks franchisees into relationship with declining system
- 06MED6% royalty on undisclosed revenue base creates uncertainty about true cost structure and break-even point
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.