FranchiseVerdict
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D72/100FDD 2025

Mama’s Meatball — 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
72 / 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
California
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in system indicates nascent/failing franchise with zero proven scalability or support infrastructure
  2. 02MINORNo Item 19 financial disclosures (avg revenue/net income) prevents validation of ROI claims and suggests franchisor may lack performance data
  3. 03HIGHGoing Concern status is FALSE, indicating potential financial distress or operational instability at franchisor level
  4. 04MINORHigh investment range ($311.5K-$523.9K) relative to single-unit system creates disproportionate risk with no peer performance benchmarks
  5. 05MINORInability to validate if the 1 existing unit is profitable, franchisee-owned, or company-operated creates transparency gap
  6. 06MINOR10-year term locks franchisee into relationship with unproven business model and potential franchisor collapse
  7. 07MED5% royalty on undisclosed revenues means franchisee cannot model cash flow or break-even scenarios

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.