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B71/100FDD 2023

Miller’s Famous Sandwiches — 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
71 / 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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 71/100 rating

Risk Score Breakdown

  1. 01MEDOnly 2 franchised units — critically small system with no disclosed growth trajectory suggests stagnant or failing franchise model
  2. 02HIGHGoing Concern = False indicates franchisor financial distress or operational viability problems
  3. 03MINORNo Item 19 (financial performance representations) — cannot verify if $2.0M avg revenue is achievable or sustainable for franchisees
  4. 04MEDHigh investment range ($335.5K–$690.5K) with undisclosed net income creates opacity around actual profitability and ROI
  5. 05MINORExtreme unit concentration risk: only 2 locations means any closure materially damages franchise credibility and franchisor support capability
  6. 06HIGHNo litigation disclosed but Going Concern status suggests underlying legal or operational issues not surfaced
  7. 07MINOR10-year term is long commitment to unproven system with minimal track record or peer validation

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.