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B59/100FDD 2025

Jaggers — Litigation & Risk

Food & Beverage - Full Service · 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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Kentucky
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (average revenue and net income not provided) prevents ROI validation on $3.3M-$4.2M investment
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial instability or uncertainty at corporate level
  3. 03MEDExtremely small unit count (13 total) suggests early-stage brand with limited proven scalability and network effects
  4. 04MINOR100% YoY growth from very low base (likely 6-7 units prior year) is not statistically meaningful or sustainable validation
  5. 05MEDHigh initial investment ($3.3M-$4.2M) combined with no disclosed profitability creates acute payback period risk
  6. 06MED5% royalty on undisclosed sales revenue makes it impossible to calculate true cost of ownership

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.