B59/100FDD 2026
Holy Burger — Litigation & Risk
Food & Beverage - Full Service · 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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 59/100 rating
Risk Score Breakdown
- 01MEDNo average revenue or net income disclosed (Item 19 missing) — impossible to validate ROI on $95.6K-$313.4K investment
- 02HIGHGoing Concern status is FALSE — suggests franchisor may have solvency or operational sustainability issues
- 03MINOR100% YoY unit growth from only 26 units is statistically unreliable and may indicate new system with unproven model
- 04MINORWide investment range ($218K spread) suggests inconsistent unit economics or undefined support costs
- 05MED5% royalty on undisclosed revenues creates earnings opacity — franchisees cannot estimate net profit margins
- 06HIGHNo litigation disclosed but combined with going concern status raises questions about financial stability and franchisor support
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.