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A39/100FDD 2025

Keke’s Breakfast Café — Litigation & Risk

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

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
39 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
10
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 39/100 rating

Risk Score Breakdown

  1. 01HIGHThree pending/settled litigation cases involving parent company affiliates (DFO, LLC and Denny's, Inc.) suggest structural or operational disputes within the franchise system
  2. 02MINORHigh initial investment range ($622K–$1.9M) with no Item 19 (Financial Performance Representations) provided, making ROI projections unverifiable
  3. 03MEDModest unit growth of 12.2% YoY on only 69 total units indicates a small, still-scaling system with limited brand recognition and survival track record
  4. 04HIGHPending litigation as of 2023 (RWDT FOODS case) remains unresolved, creating uncertainty around franchisor stability and potential financial liability to franchisees
  5. 05HIGHGoing Concern flagged as 'False' — if this refers to the franchisor, it raises questions about financial viability and ability to support franchisees long-term

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.