A34/100FDD 2025
Footprints Floors — Litigation & Risk
Food & Beverage - Quick Service · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
34 / 100
FranchiseVerdict composite
Rating
STRONG
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
Colorado
State whose law governs disputes — relevant if you're not based there
What drove the 34/100 rating
Risk Score Breakdown
- 01MEDNet income ($957,065) exceeds gross revenue ($813,888) — mathematically impossible and suggests Item 19 data integrity issues or incomplete disclosure
- 02MINORMinimum monthly royalty fee structure creates fixed cost burden; clarify if 6% threshold is easily met across unit performance variance
- 03MEDModest unit growth (7.5% YoY) and only 87 total units indicates small, maturing system with limited scale benefits
- 04HIGHTwo disclosed litigations (installation defects + non-compete enforcement) suggest quality control and franchisee compliance challenges
- 05MINORHigh franchise fee ($68,000) relative to initial investment range ($79,955–$114,480) represents 59–85% of total startup costs upfront
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.