FranchiseVerdict
Meadows Original Frozen Custard logo
B59/100FDD 2025

Meadows Original Frozen Custard — Litigation & Risk

Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5

Back to overview

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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
9
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Pennsylvania
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess ROI or payback period on $134k-$512k investment
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial distress at franchisor level
  3. 03MINORUnit growth of only 11.5% YoY is modest for a growing brand and suggests market saturation or recruitment challenges
  4. 04MINORWide investment range ($134k-$512k) with no net income data makes cost predictability impossible for franchisees
  5. 05MINORNo royalty fees creates revenue uncertainty for franchisor sustainability and ongoing support quality
  6. 06MEDOnly 29 total units is a micro-franchise system with limited brand recognition and economies of scale
  7. 07MINORFrozen custard category is highly seasonal and location-dependent, increasing individual unit volatility

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.