D68/100FDD 2025
Melting Pot® — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
68 / 100
FranchiseVerdict composite
Rating
CAUTION
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
75
Government-backed loans issued
Default rate
29.3%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
22 loans
Loans charged off or defaulted
Total loan volume
$48.2M
Avg loan size
$642K
Participating lenders
26
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
Florida
State whose law governs disputes — relevant if you're not based there
What drove the 68/100 rating
Risk Score Breakdown
- 01MINORUnit count declining 2.3% YoY indicates shrinking system despite mature brand
- 02MEDNet income not disclosed in Item 19 prevents ROI analysis and profitability verification
- 03MEDHigh initial investment ($1.6M–$2.7M) with no disclosed average net income creates uncertainty on payback period
- 04HIGH2019 employment litigation and no-poach agreement removal suggests franchisor compliance issues
- 05HIGHGoing Concern status (True) may indicate financial stability concerns at corporate level
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.