B64/100FDD 2022
Little Big Burger — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
64 / 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
North Carolina
State whose law governs disputes — relevant if you're not based there
What drove the 64/100 rating
Risk Score Breakdown
- 01HIGHParent company (Chanticleer Holdings) settled $850K securities litigation in 2012-2014, indicating governance/disclosure concerns at corporate level
- 02MEDNet income not disclosed in FDD — inability to validate profitability claims against $763K average revenue figure
- 03MINOROnly 16 franchise units with unknown growth trajectory — extremely small system raises sustainability questions
- 04HIGHGoing Concern status suggests financial instability at parent company despite franchise recruitment
- 05MEDHigh investment range ($206K-$607K) paired with undisclosed net income creates opacity on ROI timeline
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.