CAverage40/100
Panchero's: Litigation & Risk
Full-Service Restaurants · 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)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 40 / 100
- FranchiseVerdict composite · higher is better
- Rating
- C
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 36
- Government-backed loans issued
- Charge-off rate
- 26.1%
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- 6 loans
- Loans charged off or defaulted
- Total loan volume
- $12.0M
- Avg loan size
- $333K
- Participating lenders
- 23
FDD Items 5, 6 & 17: What You Give Up
Contract Risk Indicators
- Mandatory arbitration
- Not required
- You retain the right to sue in court
- Non-compete
- 2 yrs
- Post-termination restriction on similar businesses
- Right of first refusal
- Yes
- Franchisor can match any purchase offer when you try to sell
- Governing law
- Iowa
- State whose law governs disputes. Relevant if you're not based there
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.