A51/100FDD 2025
Hangar 54 Pizza — Litigation & Risk
Food & Beverage - Pizza · FDD Items 3, 4 & 5
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
51 / 100
FranchiseVerdict composite
Rating
STRONG
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
169
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Delaware
State whose law governs disputes — relevant if you're not based there
What drove the 51/100 rating
Risk Score Breakdown
- 01MINORNo financial performance disclosure (Item 19) — cannot validate claimed 27.6% YoY growth or actual profitability
- 02MINORExtreme investment range variance ($9K–$643.5K, 71x difference) suggests inconsistent unit economics or undefined territory model
- 03MINORZero royalty model raises sustainability questions about franchisor support, marketing fund, and long-term reinvestment capacity
- 04MEDRapid unit expansion (27.6% YoY) without disclosed profitability metrics suggests possible low-barrier-to-entry saturation risk
- 05MEDNo term length disclosed — unclear franchise duration, renewal terms, and long-term commitment expectations
- 06HIGHGoing Concern status False but financial transparency absent — cannot independently verify viability claims
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.