Full-Service Restaurants · FDD Items 3, 4 & 5
Moderate: Review
1 case disclosed in FDD Items 3 and 4.
FDD Items 3 & 4
7(a) FOIA data · FY2020–present
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
FDD Items 5, 6 & 17: What You Give Up
Extracted from FDD Item 3
Nautilus Food Company, LLC / Spencer Turner / Ronald Turner filed AAA arbitration in June 2024 alleging Florida Franchise Act violations, deceptive practices, misrepresentation, and breach of contract related to sale of 10 franchise agreements (seeking $2M+); franchisor terminated those agreements and filed a federal suit for breach of contract, trademark infringement, unfair competition, obtaining injunctive relief; parties settled in March 2025 with mutual release and $500,000 paid by franchisor's insurance carrier to claimants.
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.