B64/100FDD 2024
Nirchi's Pizza — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
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
64 / 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
169
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
Non-compete
3 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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 64/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — indicates potential financial instability or disclosure issues with the franchisor
- 02MEDNo Item 19 (financial performance) disclosed — impossible to validate the claimed investment range or profitability claims
- 03MINOROnly 6 units system-wide — extremely small franchise network suggests minimal brand presence, scaling difficulty, and higher failure risk
- 04MEDNo disclosed average revenue or net income — lack of transparency prevents ROI validation and creates asymmetric information risk
- 05MINORUnknown unit growth trajectory — cannot assess system momentum, franchisee retention, or market viability
- 06MINORHigh investment range ($392K–$810.5K) with no corresponding financial disclosure — cost-to-profit ratio cannot be evaluated
- 07MINOR5-year term is relatively short — may indicate franchisor unwilling to commit long-term or testing market viability
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.