F79/100FDD 2025
Marble Slab Creamery — Litigation & Risk
Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5
Elevated Risk
8 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
79 / 100
FranchiseVerdict composite
Rating
AVOID
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
223
Government-backed loans issued
Default rate
29.4%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
63 loans
Loans charged off or defaulted
Total loan volume
$46.4M
Avg loan size
$208K
Participating lenders
81
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 79/100 rating
Risk Score Breakdown
- 01MINORSeverely declining unit count: only 249 units with 0.4% YoY growth indicates a contracting franchise system losing momentum
- 02HIGHParent company FAT Brands facing active securities class action litigation plus multiple concluded lawsuits regarding stock price manipulation and registration violations—suggests governance and transparency issues
- 03MEDAverage revenue of $480,828 with undisclosed net income prevents accurate ROI calculation; without Item 19 data, franchisees cannot validate the $354.5K-$476.6K investment thesis
- 04MINOR15-year term length locks franchisees into a long commitment during a period of system contraction, limiting exit flexibility
- 05MINOR6% royalty on declining average revenue creates margin pressure; profitability data absence suggests parent may be obscuring poor unit economics
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.