FranchiseVerdict
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A46/100FDD 2025

Häagen-Dazs Shop — Litigation & Risk

Food & Beverage - Ice Cream & Desserts · 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
46 / 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
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 46/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-1.0% YoY) suggests system contraction despite premium brand positioning
  2. 02MEDNet income not disclosed in Item 19 — unable to verify actual profitability claims against $704k average revenue
  3. 03MINORHigh initial investment range ($214k-$567k) with no transparent profitability data creates misalignment of risk/reward
  4. 04MEDRoyalty structure (4%) combined with undisclosed operating costs makes ROI timeline uncertain
  5. 05MINORPremium ice cream category vulnerable to economic downturns and seasonal revenue volatility

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.