FranchiseVerdict
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A49/100FDD 2025

Grimaldi's Coal Brick Oven Pizzeria — 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
49 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

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

Contract Risk Indicators

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

What drove the 49/100 rating

Risk Score Breakdown

  1. 01MINORExplosive 300% YoY unit growth (46 units) suggests rapid expansion without proven sustainability track record
  2. 02MEDNet income not disclosed despite $2.89M average revenue—unable to verify actual profitability or ROI
  3. 03MINORNo territory protection creates cannibalization risk, especially during hypergrowth phase
  4. 04MINORHigh initial investment ($1.39M–$1.84M) with 10-year term but no Item 19 financials to justify returns
  5. 05MINORRapid expansion often correlates with quality control and franchisee support 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.