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D72/100FDD 2025

Old Ferry Donut — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01HIGHRegulatory consent order with California DFPI for failure to disclose litigation to franchisees—demonstrates compliance and transparency failures
  2. 02MINOROnly 5 units system-wide with unknown growth trajectory—suggests stagnant or declining franchise system
  3. 03MINORNo average revenue or net income disclosure in FDD Item 19—impossible to validate ROI claims or unit economics
  4. 04MINORUnprotected territory combined with high initial investment ($253.5k–$422k) creates severe cannibalization risk
  5. 05MED7% royalty on undisclosed revenues creates cash flow burden without baseline performance visibility
  6. 06MINOR$50,000 franchise fee with 7-year term suggests front-loaded model benefiting franchisor over franchisee success
  7. 07HIGHNo going concern statement is positive but only 5 units raises viability questions

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.