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B65/100FDD 2025

Frylicious — Litigation & Risk

Food & Beverage - Full Service · 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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
The state where the Franchised Business is located
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 operating unit in the entire system — no proven scalability or replicable model
  2. 02MINORNo Item 19 disclosure (average revenues/net income) — inability or unwillingness to share performance data is a major red flag
  3. 03MINORWide investment range ($48,850–$1,085,000) suggests undefined buildout costs and unclear unit economics
  4. 04MINORMinimum royalty of $125/week ($6,500/year) creates breakeven pressure for underperforming locations
  5. 05MEDNo disclosed growth trajectory — single unit with unknown franchise system viability
  6. 06HIGHGoing Concern status 'False' but early-stage franchisor with minimal operating history suggests execution risk

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.