D75/100FDD 2025
Fun BeerKing — 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
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
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
Nevada
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status indicates franchisor financial distress or viability uncertainty
- 02MINOROnly 1 unit in system suggests brand is either brand new, failed to scale, or actively shrinking
- 03MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and profitability assessment
- 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 05MEDHigh initial investment range ($332k-$580k) with no disclosed revenue benchmarks creates misalignment of risk/reward
- 06HIGHNo litigation disclosure combined with going concern status raises transparency concerns
- 07MINOR5-year term is shorter than industry standard, suggesting franchisor uncertainty about long-term viability
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.