FranchiseVerdict
MAX’S RESTAURANT CUISINE OF THE PHILIPPINES® logo
D70/100FDD 2025

Max’s Restaurant Cuisine Of The Philippines® — 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
70 / 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
Colorado
State whose law governs disputes — relevant if you're not based there

What drove the 70/100 rating

Risk Score Breakdown

  1. 01MINORSystem contraction of 5.9% YoY (24 units) indicates declining franchisee viability and potential unit closures
  2. 02HIGHGoing Concern status = FALSE signals franchisor financial distress or operational uncertainty per FDD Item 1
  3. 03MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or benchmark unit economics
  4. 04MINORUnprotected territory creates cannibalization risk; new franchisees may compete directly with existing units
  5. 05MINORHigh investment range ($729K–$1.84M) with no average unit volume data means franchisees cannot assess payback period
  6. 06MINOR5-year term is shorter than industry standard (10 years), increasing renewal/relocation uncertainty
  7. 07MINOR5% royalty combined with unknown operating costs creates cash flow blind spot for ROI modeling

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.