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F78/100FDD 2024

Great Wraps — Litigation & Risk

Food & Beverage - Quick 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
78 / 100
FranchiseVerdict composite
Rating
AVOID
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
31
Government-backed loans issued
Default rate
34.5%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
10 loans
Loans charged off or defaulted
Total loan volume
$5.8M
Avg loan size
$188K
Participating lenders
22

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 78/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 2.6% YoY indicates system contraction and potential market saturation or franchisee dissatisfaction
  2. 02MEDNet income not disclosed in Item 19 prevents ROI validation; only average revenue of $678,453 is provided without profitability context
  3. 03MEDHigh initial investment range ($269,650-$563,700) relative to undisclosed net income creates uncertainty about payback period and actual returns
  4. 04MINOR5.5% royalty on net sales is moderate-to-high; combined with operating costs, profitability margins are unclear
  5. 05MEDOnly 37 units systemwide suggests limited brand recognition and smaller support infrastructure compared to established chains

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.