B68/100FDD 2022
Mad for Chicken — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
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
68 / 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
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
$640K
Avg loan size
$640K
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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 68/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates potential financial instability or undisclosed operational challenges at corporate level
- 02MEDNet Income not disclosed in Item 19 — impossible to validate actual profitability despite $2.71M average revenue claim
- 03MINOROnly 9 units system-wide — extremely small franchise network raises questions about scalability, support infrastructure, and corporate viability
- 04MINORWide investment range ($436K–$917K spread of 110%) — suggests inconsistent unit economics or lack of standardized build-outs
- 05MEDNo disclosed unit growth trajectory — cannot assess whether the 9 units are stable, growing, or declining
- 06MINOR5% royalty on gross revenue — favorable rate masks inability to evaluate net unit economics without profit disclosure
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.