![La Diperie logo](https://cdn.brandfetch.io/ladiperie.us/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
D75/100FDD 2026
La Diperie — Litigation & Risk
Food & Beverage - Quick Service · FDD Items 3, 4 & 5
Elevated Risk
18 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
18
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$486K
Avg loan size
$486K
Participating lenders
1
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
Arizona
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01MINOROnly 2 units system-wide with zero net growth trajectory despite 100% YoY claim (likely means 1→2 units)
- 02MINOR3 ongoing franchisor-vs-franchisee lawsuits for breach of contract and trademark infringement indicate systemic operational/legal friction
- 03HIGH9 concluded litigations/arbitrations involving predecessors and affiliates suggest chronic dispute patterns across company history
- 04MINORNo average revenue or net income disclosure (Item 19 absent) prevents financial performance validation
- 05MINORUnprotected territory creates direct cannibalization risk if franchisor opens competing units nearby
- 06MEDHigh investment range ($162.7K-$553K) combined with minimal unit count and undisclosed profitability creates severe ROI opacity
- 07MINOR6% royalty on gross sales (not net) is punitive if margins are thin
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.