FranchiseVerdict
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B65/100FDD 2025

Macu — Litigation & Risk

Food & Beverage - Coffee & Tea · 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
Non-compete
3 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
Washington
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial performance disclosure (average revenue and net income not provided) prevents ROI validation
  2. 02MINORExtremely small franchisee base (only 4 units) limits track record credibility and support infrastructure viability
  3. 03MINOR100% YoY unit growth from 2 to 4 units is statistically insignificant and may not represent sustainable expansion
  4. 04MINORDual royalty structure ($2,000 flat + 2% variable) lacks transparency on typical franchisee profitability thresholds
  5. 05MEDHigh initial investment ($144.5K–$206.6K) paired with undisclosed average revenues creates unquantifiable payback risk
  6. 06MINORShort 4-year franchise term limits long-term planning and renewal predictability
  7. 07HIGHGoing Concern status is FALSE, but absence of explicit 'True' designation requires clarification on franchisor financial stability

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.