D70/100FDD 2025
Icy-N-Spicy — Litigation & Risk
Food & Beverage - Ice Cream & Desserts · 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
70 / 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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 70/100 rating
Risk Score Breakdown
- 01MINOROnly 2 existing units with unknown growth trajectory suggests nascent/stagnant system with no proof of concept at scale
- 02MEDNet income not disclosed despite average revenue of $786,839 — unable to validate actual profitability or ROI on $262k-$395k investment
- 03HIGHGoing concern status is FALSE, indicating potential financial instability or uncertainty at franchisor level
- 04MINORNo protected territory — direct competition risk from other franchisees and franchisor in same market
- 05MED5.5% royalty on disclosed revenue ($786k) = ~$43k annual ongoing fee, but profitability unknown makes true burden unclear
- 06MINORFranchise fee of $38,000 is reasonable, but total investment range suggests high capital requirement with minimal historical performance data
- 07MINOR10-year term locks franchisee into relationship with unproven system during critical early growth phase
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.