D69/100FDD 2023

Falbo Bros Pizzeria — Litigation & Risk

Food & Beverage - Pizza · 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

Total from FDD Items 3 and 4

Bankruptcy (Item 4)

—

Franchisor or officer bankruptcy

Overall risk score

69 / 100

FranchiseVerdict composite

Rating

CAUTION

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

Minnesota

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

What drove the 69/100 rating

Risk Score Breakdown

01MINORNo Item 19 (Average Unit Volumes) disclosure — impossible to assess profitability or ROI on $40K-$250K investment
02MEDOnly 7 total units system-wide indicates minimal scale, limited support infrastructure, and high failure risk
03HIGHGoing Concern status is FALSE — suggests franchisor financial instability or viability questions
04MINORWide investment range ($40K-$250K) with no corresponding revenue/profit data creates unpredictable outcomes
05HIGHNo disclosed litigation but going concern issue suggests potential undisclosed legal or operational problems
06MED5-year term is short for pizza QSR; limited runway to recoup $15K franchise fee + buildout costs

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.