FranchiseVerdict
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B65/100FDD 2025

Green + The Grain — 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
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 6 units in system with unknown growth trajectory suggests early-stage or stalled expansion
  2. 02HIGHGoing Concern = False indicates franchisor financial viability concerns or accounting irregularities
  3. 03MINORWide investment range ($352K-$1.3M) suggests inconsistent unit economics or unclear cost structure
  4. 04MINORNo Item 19 (financial performance representation) limits ability to validate $212K average net income claim
  5. 05MINOR18% net margin appears optimistic for QSR/restaurant concept without audited substantiation
  6. 06MINOR6% royalty on $1.19M average revenue = $71K annual fee creates thin margin for underperforming units

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.