FranchiseVerdict
Jerk King logo
B65/100FDD 2025

Jerk King — Litigation & Risk

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

Back to overview

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
65 / 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
New York
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial performance data disclosed — cannot validate $247k-$471k investment ROI
  2. 02MINOROnly 1 unit in system with unknown growth trajectory — insufficient proof of concept or scalability
  3. 03MINORUnprotected territory creates direct competition risk from same franchisor or other Jerk King locations
  4. 04MINORWide investment range ($223k spread) suggests inconsistent unit economics or undefined startup costs
  5. 05MED5% royalty on undisclosed revenues — cannot calculate true profitability or break-even timeline
  6. 06MINOR10-year term with single operating unit suggests early-stage, unproven franchise model

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.