![Piggly Wiggly logo](https://cdn.brandfetch.io/shopthepig.com/w/128/h/128/fallback/lettermark?c=<img src="https://cdn.brandfetch.io/domain/apple.com?c=1idsvcTjLv919Ax0E2s" alt="Logo by Brandfetch" />){kind=small}
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
70 / 100
FranchiseVerdict composite
Rating
CAUTION
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
50
Government-backed loans issued
Default rate
17.1%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
6 loans
Loans charged off or defaulted
Total loan volume
$39.0M
Avg loan size
$781K
Participating lenders
29
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
Wisconsin
State whose law governs disputes — relevant if you're not based there
What drove the 70/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count: 90 stores with -3.7% YoY contraction indicates system shrinkage and potential franchisee struggle
- 02MINORRazor-thin profitability: $34,867 average net income on $13M revenue (0.27% net margin) is unsustainably low for grocery retail
- 03MINORNo territorial protection: Franchisees face direct competition from other Piggly Wiggly locations and zero exclusivity guarantees
- 04MINORHigh investment-to-return ratio: $2-6.6M capital requirement against <$35K average annual profit creates multi-decade payback period
- 05HIGHUnprotected contract: 5-year term with no going concern safeguards; franchisor could discontinue support or rebrand
- 06MINORTiered royalty structure appears favorable on surface but royalties paid on declining sales base as unit count shrinks
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.