A49/100FDD 2025
Ford’s Garage — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
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
49 / 100
FranchiseVerdict composite
Rating
STRONG
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
8
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
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 49/100 rating
Risk Score Breakdown
- 01MINORHigh initial investment ($3.7M-$6.6M) with modest average net income ($568K) yields 9-12 year payback period, creating significant financial risk
- 02MEDNo Item 19 (Financial Performance Representations) disclosed — inability to verify if $5.73M average revenue and $568K net income are typical or outlier results
- 03MINORRapid unit growth (21.7% YoY) may indicate aggressive recruitment outpacing support infrastructure; 29-unit system still relatively small and unproven at scale
- 04MINORRoyalty structure excludes merchandise and gift card sales, potentially creating hidden revenue gaps and franchisor incentive misalignment
- 05MINORNet profit margin of only 9.9% ($568K/$5.73M) is thin for QSR-hybrid model, leaving little buffer for underperforming locations or economic downturns
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.