A54/100FDD 2025
Graze Craze — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Elevated Risk
6 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
6
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
54 / 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
10
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$1.5M
Avg loan size
$147K
Participating lenders
6
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 54/100 rating
Risk Score Breakdown
- 01HIGHSignificant litigation history involving management across multiple brands (MACFO, Signaroma, Great Greek) with allegations of franchise law violations and disclosure failures—suggests systemic compliance issues
- 02MEDNo Item 19 financial performance data (avg revenue/net income not disclosed)—impossible to validate investment returns or unit profitability claims
- 03HIGHGoing Concern status is FALSE—indicates potential financial instability or undisclosed operational challenges at corporate level
- 04MINORRapid unit growth of 27.1% YoY with only 90 units is concerning without corresponding financial transparency—typical of unsustainable expansion before market saturation or unit failures
- 05MINORAdministrative/civil actions specifically mention 'material deficiencies in disclosure documents' and 'unauthorized information sharing'—raises questions about what information is being withheld from prospective franchisees
- 06HIGHManagement has prior litigation involvement across unrelated franchise concepts—pattern suggests potential recurring compliance or operational management issues
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.