FranchiseVerdict
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B65/100FDD 2025

Dirty Birds Bar and Grill — 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
California
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 (average unit revenue and net income not provided) — impossible to validate ROI claims
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial instability or ownership restructuring concerns
  3. 03MINORExtremely wide investment range ($462.9K–$1.59M) suggests lack of standardization and unpredictable startup costs
  4. 04MEDOnly 7 units in system creates severe limited data set and raises questions about franchisor's operational maturity and support infrastructure
  5. 05MINOR100% YoY unit growth from minimal base (likely 3-4 units previously) is statistically meaningless and may mask underlying weakness
  6. 06MINOR5% royalty on gross revenue (not net profit) combined with no profitability data creates risk of cash-flow squeeze for franchisees

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.