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B65/100FDD 2025

la Madeleine — Litigation & Risk

Food & Beverage - Bakery · 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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
1 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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 3.1% YoY (91 units) suggests system contraction and potential market saturation or operational challenges
  2. 02MEDNo Item 19 (Financial Performance Representation) disclosed — cannot independently verify the $2.19M avg revenue or $251K net income claims
  3. 03MINOR11.5% net margin (251K / 2.19M) is thin for food service; 5% royalty on top of COGS (typically 28-32%), labor (28-30%), rent (8-10%) leaves minimal cushion
  4. 04MINORHigh investment range ($448K–$2.5M) with wide variance suggests inconsistent location costs or build-out standards
  5. 05MINORMature brand in competitive QSR/casual dining segment facing structural headwinds (rising labor, inflation, changing consumer behavior)

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.