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B55/100FDD 2026

Little Caesars — Litigation & Risk

Food & Beverage - Pizza · FDD Items 3, 4 & 5

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Elevated Risk

11 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
11
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
163
Government-backed loans issued
Default rate
8.0%
vs <3% typical · system-wide
5-yr default rate
6.7%
Defaults
6 loans
Loans charged off or defaulted
Total loan volume
$119.6M
Avg loan size
$733K
Participating lenders
77

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

What drove the 55/100 rating

Risk Score Breakdown

  1. 01HIGHHigh litigation history including breach of contract, fraud in inducement, and anti-poaching settlement suggests adversarial franchisor-franchisee relationships
  2. 02MINORMinimal unit growth (2.4% YoY) on mature system of 4,374 units indicates market saturation and difficulty in recruiting/retaining franchisees
  3. 03MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents verification of profitability claims and return on investment
  4. 04MINORWide investment range ($376,500–$1,769,200) suggests high variability in startup costs and unclear path to ROI
  5. 05MINORHybrid royalty structure (greater of 6% or $300/week) creates floor burden on low-revenue locations, with minimum annual royalty ~$15,600
  6. 06MINORFranchisor appears litigious against franchisees—multiple cases initiated to enforce terminations and exercise contractual rights, indicating enforcement-heavy management style

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.