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B65/100FDD 2024

OddFellows — Litigation & Risk

Food & Beverage - Ice Cream & Desserts · 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
65 / 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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDOnly 5 units system-wide indicates extremely limited scale and market validation
  2. 02MINORNo net income disclosure (Item 19) prevents accurate ROI assessment despite $490K avg revenue
  3. 03HIGHGoing Concern status is FALSE, suggesting potential franchisor financial instability or operational issues
  4. 04MINORUnknown unit growth trajectory raises questions about system viability and franchisee success rates
  5. 05MEDWide investment range ($234K-$591K) with no disclosed profitability creates uncertainty on breakeven timeline
  6. 06MED6% royalty on $490K average revenue = $29.4K annual ongoing fees with no clear path to disclosed profit

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.