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F84/100FDD 2025

Maui Wowi — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

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Elevated Risk

20 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
20
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
84 / 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
42
Government-backed loans issued
Default rate
36.6%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
15 loans
Loans charged off or defaulted
Total loan volume
$5.8M
Avg loan size
$138K
Participating lenders
27

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
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 84/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 10.1% year-over-year (80 units) indicates system contraction and weak franchisee retention
  2. 02MEDNo Item 19 financial disclosures (avg revenue/net income not disclosed) prevents assessment of actual unit profitability
  3. 03HIGHSignificant litigation history involving predecessors, affiliates, and multiple restaurant brands under common ownership with breach of contract and misrepresentation claims raises operator integrity concerns
  4. 04MINORWide investment range ($28,900–$597,000) suggests inconsistent unit economics or undefined support requirements
  5. 05HIGHGoing concern status is False, creating ambiguity about parent company financial stability
  6. 06MINORHigh franchise fee ($30,000) combined with declining unit count suggests franchisor may be dependent on new recruitment over system growth

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.