D75/100FDD 2025
Hop & Grape Taproom — Litigation & Risk
Other · 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Wisconsin
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01MEDZero existing franchise units indicates brand has never successfully scaled or all units have failed/closed
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI analysis and suggests poor unit economics
- 03HIGHGoing concern status is FALSE, indicating financial instability at franchisor level
- 04MINORHigh investment range ($215k-$415k) with no performance benchmarks creates significant capital risk
- 05MINORMinimal $35k franchise fee relative to total investment suggests franchisor lacks capital and may underfund support
- 06MED4% royalty on undisclosed revenues means franchisee cannot forecast ongoing costs or franchisor sustainability
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.