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B61/100FDD 2025

MF Gyros & Burgers — 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
61 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Wyoming
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MEDOnly 1 unit in entire franchise system indicates either brand-new concept or failed expansion—extremely limited track record and no system stability data
  2. 02HIGHNo 'Going Concern' status suggests franchisor may have financial viability concerns or undisclosed operational instability
  3. 03MEDMissing Item 19 (Financial Performance Representation) prevents validation of claimed $434,560 avg revenue and $134,909 net income figures
  4. 04MINORHigh investment range ($162,700–$378,200) with single-unit reference point makes ROI projections unverifiable and high-risk
  5. 05MINOR6% royalty on gross sales is standard, but profitability highly dependent on unvalidated cost assumptions with only one operating example

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.