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B55/100FDD 2025

Haven Hot Chicken — Litigation & Risk

Food & Beverage - Quick 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
55 / 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
Connecticut
State whose law governs disputes — relevant if you're not based there

What drove the 55/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status indicates potential financial distress at franchisor level despite positive unit economics
  2. 02MEDOnly 9 units system-wide suggests minimal scale, limited support infrastructure, and unproven replicability
  3. 03HIGHNo disclosed litigation combined with Going Concern raises questions about financial transparency and potential undisclosed disputes
  4. 04MINORUnknown unit growth trajectory makes it impossible to assess system momentum or validate franchisee success sustainability
  5. 05MINORHigh initial investment ($407k–$868k) relative to small system size creates concentration risk if franchisor fails
  6. 06MINORNo Item 19 financial performance representation limits ability to validate claimed $408k average net income independently

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.