FranchiseVerdict
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B57/100FDD 2023

Moby Dick House of Kabob — 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
57 / 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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 57/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial disclosure (average unit volumes and profitability completely unknown)
  2. 02HIGHGoing Concern status is FALSE — suggests potential franchisor financial instability or regulatory issues
  3. 03MINORSmall system size (25 units) limits brand recognition and support infrastructure scaling
  4. 04MINORWide investment range ($440,900–$1,053,200) indicates high variability in unit economics and unclear cost structure
  5. 05HIGHNo litigation disclosure provided — cannot verify clean legal history
  6. 06MINOR20% YoY growth appears strong but on a tiny base (5 new units) — statistically insignificant

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.