B65/100FDD 2024
Good Stuff Eatery — 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
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
5 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 65/100 rating
Risk Score Breakdown
- 01MINOROnly 6 units in system with unknown growth trajectory suggests stagnant or contracting franchise
- 02MEDNo Item 19 (Average Unit Volume) disclosed — inability or unwillingness to share revenue data is major warning
- 03MEDNo average net income disclosed — cannot assess profitability or ROI on $633k-$962k investment
- 04HIGHGoing Concern = False indicates financial instability or operational challenges at corporate level
- 05MINORHigh franchise fee ($50k) relative to small unit count suggests reliance on franchise fees rather than proven unit economics
- 06MED5.5% royalty on undisclosed revenue means ongoing costs are opaque and unverifiable
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.