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D68/100FDD 2025

Madurai Kitchen — Litigation & Risk

Food & Beverage - Full Service · 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
68 / 100
FranchiseVerdict composite
Rating
CAUTION
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
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
Illinois
State whose law governs disputes — relevant if you're not based there

What drove the 68/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates financial distress or viability questions at franchisor level
  2. 02MEDOnly 2 units in system with unknown growth trajectory — extremely limited scale and no proven replication model
  3. 03MEDNet income not disclosed in Item 19 — unable to validate actual profitability claims; only gross revenue ($959k avg) provided
  4. 04MINORHigh investment range ($221.5k–$702.5k) with opaque unit economics — wide variance suggests inconsistent costs or financial performance
  5. 05MINOR7-year term with 5% royalty on only 2 units suggests early-stage/struggling franchise system
  6. 06HIGHNo litigation disclosed is neutral, but combined with 'Going Concern' status raises credibility concerns about franchisor transparency

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.