B58/100FDD 2025
Dirty Dough® Cookies — Litigation & Risk
Food & Beverage - Bakery · FDD Items 3, 4 & 5
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
58 / 100
FranchiseVerdict composite
Rating
MODERATE
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
96
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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
3 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
Utah
State whose law governs disputes — relevant if you're not based there
What drove the 58/100 rating
Risk Score Breakdown
- 01HIGHActive litigation alleging fraudulent inducement and misrepresentation with $465K damages claim from former franchisee
- 02MINORNo Item 19 financial disclosure (average unit volumes, net income, or profitability data)
- 03MINORExplosive unit growth (253.8% YoY) suggests rapid, potentially unsustainable expansion and quality control risk
- 04MINORUnprotected territory creates direct competition risk between franchisees and cannibalization of sales
- 05HIGHGoing Concern status = False indicates potential financial instability at franchisor level
- 06MEDHigh investment range ($153.6K–$510K) with no disclosed average unit economics to justify ROI
- 07MINORNo transparency on average revenue—critical metric absent from franchise disclosure
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.