FranchiseVerdict
D75/100FDD 2025

Flowers Baking Co. of Norfolk, LLC — Litigation & Risk

Food & Beverage - Bakery · 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
75 / 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
1 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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern warning indicates potential franchise system viability issues
  2. 02MEDSevere unit decline: 162 units with only 0.6% YoY growth suggests stagnation or contraction
  3. 03MEDNet income not disclosed combined with low average revenue ($13,276) raises profitability concerns
  4. 04MEDHigh franchise fee ($100,000) relative to disclosed average revenue creates poor ROI visibility
  5. 05MINORRoyalty rate unknown — potential hidden costs or unfavorable payment structures
  6. 06MINORNo Item 19 financial performance data prevents verification of franchisee earning claims
  7. 07MEDContract term unknown suggests incomplete disclosure or unfavorable terms
  8. 08MINORFlat unit growth in declining baked goods retail sector indicates competitive weakness

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.