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D75/100FDD 2026

Ins Ice Beer — Litigation & Risk

Food & Beverage - Full Service · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
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
California
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINORZero operating franchisees (0 units) indicates brand has never successfully launched or has collapsed entirely
  2. 02HIGHParent company Wowledment Korea settled FDD fraud allegations with Virginia in August 2025 — selling unregistered franchises and withholding required disclosure documents
  3. 03MEDNo average revenue or net income disclosed (Item 19 missing) — impossible to validate ROI claims or unit economics
  4. 04HIGHGoing Concern status is FALSE — suggests potential insolvency or structural instability of franchisor
  5. 05MINORHigh initial investment ($444k-$916k) with unproven unit economics and zero operating reference stores
  6. 06HIGHRecent litigation (August 2025) indicates ongoing regulatory compliance failures and questionable business practices
  7. 07MED5-year term with 3% royalty on undisclosed sales base creates opaque fee structure

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.