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A49/100FDD 2025

International Food Creations — Litigation & Risk

Other · FDD Items 3, 4 & 5

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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
49 / 100
FranchiseVerdict composite
Rating
STRONG
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
Oregon
State whose law governs disputes — relevant if you're not based there

What drove the 49/100 rating

Risk Score Breakdown

  1. 01MEDNo average revenue or net income disclosed in FDD — impossible to validate ROI claims or break-even timeline
  2. 02MINORUnprotected territory creates direct competition risk; multiple franchisees could operate in same area
  3. 03MINORHigh royalty ceiling (13%) combined with wide investment range ($25K-$121K) suggests inconsistent unit economics
  4. 04MINORSmall franchise fee ($5,000) relative to investment range signals potential hidden costs or unclear cost structure
  5. 05MEDOnly 76 units with modest 14.1% YoY growth — below typical QSR expansion rates; limited peer benchmarking available

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.