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B55/100FDD 2025

MOOYAH Burgers, Fries, Shakes — 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
55 / 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
21
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
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 55/100 rating

Risk Score Breakdown

  1. 01MEDSystem contracting: 74 units with -4.1% YoY decline indicates shrinking franchise network and potential demand/support issues
  2. 02MINORNo territory protection: Franchisees face internal competition and cannibalization risk with no exclusive operating area
  3. 03MINORWide investment range: $372K-$1.2M spread suggests inconsistent unit economics or unclear cost structure
  4. 04MEDHigh royalty burden: 6% on $1.09M avg revenue = $65,400 annual royalty plus undisclosed marketing/administrative fees
  5. 05MINORNo Item 19 financial data: Absence of franchisor-verified Unit Economics Statement limits ability to validate claimed profitability
  6. 06MED6% net margin vulnerability: At $517K net on $1.09M revenue, a modest sales decline quickly erodes profitability after 6% royalty

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.