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
Georgia
State whose law governs disputes — relevant if you're not based there
What drove the 49/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 financial disclosure (avg revenue and net income not disclosed) prevents accurate ROI assessment
- 02MINORUnprotected territory creates direct competition risk from other King of Pops franchisees in same area
- 03MINORWide investment range ($15.2K-$68.5K) suggests inconsistent startup costs or vague disclosure
- 04MINORModest unit growth of 16.7% YoY may indicate market saturation or franchisee acquisition challenges
- 05MINORMinimum weekly royalty floor ($100-$250) creates fixed cost burden even during slow seasonal periods
- 06MINOR5-year term is shorter than industry standard (10 years), reducing franchisee long-term security
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.