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B55/100FDD 2025
Hungry Howie's — Litigation & Risk
Food & Beverage - Quick 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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
84
Government-backed loans issued
Default rate
17.2%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
11 loans
Loans charged off or defaulted
Total loan volume
$19.2M
Avg loan size
$229K
Participating lenders
45
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
1 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
Michigan
State whose law governs disputes — relevant if you're not based there
What drove the 55/100 rating
Risk Score Breakdown
- 01MINORUnit count declining 1.9% YoY indicates system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in Item 19 prevents ROI validation and return predictability assessment
- 03MINORHigh initial investment ($358k-$519k) with 5.5% royalty requires $45k+ annual sales just to cover royalties at average unit performance
- 04MINORAverage revenue of $817k is modest for pizza/sub category; typical top performers exceed $1.2M, suggesting middle-of-pack unit economics
- 05HIGHNo going concern statement absent—unusual omission that warrants clarification on franchisor financial stability
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.