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B61/100FDD 2025

grown — 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
61 / 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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 operating unit creates impossible validation baseline and suggests either brand failure or extremely early stage with no proven system replicability
  2. 02HIGHGoing Concern status (False) indicates franchisor financial distress or operational uncertainty despite disclosing average revenue of $1.78M
  3. 03MINORWide investment range ($461.5K–$1.66M) suggests unclear unit economics and inconsistent build-out costs across locations
  4. 04MINOR9.3% net margin (165K net on 1.78M revenue) is thin for a franchise system, leaving minimal buffer for 6% royalties and franchisee profitability
  5. 05MINORSingle unit makes the 'average' revenue and net income figures statistically meaningless and potentially misleading for projections
  6. 06MINORUnknown growth trajectory with only one unit indicates zero demonstrated multi-unit expansion capability
  7. 07MINORFranchise fee of $49.5K is low relative to total investment, suggesting franchisor may rely heavily on royalties from struggling franchisees

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.