A46/100FDD 2024

Hangry Joe’s Hot Chicken — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed

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

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

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

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

Virginia

State whose law governs disputes — relevant if you're not based there

What drove the 46/100 rating

Risk Score Breakdown

01HIGHFounder Derek Cha has prior litigation history (two concluded sweetFrog matters alleging franchise law violations and fraudulent financial representations)
02MEDNo average revenue or net income disclosed in FDD Item 19 — prevents accurate ROI analysis and comparison to $305.5K-$518K investment
03MINORExplosive unit growth of 155% YoY (roughly 20 to 51 units) suggests rapid expansion that may outpace operational support capacity
04MEDHigh initial investment ($305.5K-$518K) combined with undisclosed profitability creates misalignment of risk/reward transparency

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.