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F84/100FDD 2025

Pita Pit — Litigation & Risk

Food & Beverage - Quick Service · 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
84 / 100
FranchiseVerdict composite
Rating
AVOID
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
57
Government-backed loans issued
Default rate
42.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
21 loans
Loans charged off or defaulted
Total loan volume
$11.7M
Avg loan size
$206K
Participating lenders
31

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
No
Franchisor can match any purchase offer when you try to sell
Governing law
Idaho
State whose law governs disputes — relevant if you're not based there

What drove the 84/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 24.3% YoY (58 units remaining) — indicates systemic contraction and potential franchisee dissatisfaction
  2. 02MINORNo net income disclosure despite $396k average revenue — suggests thin or negative margins after operating expenses
  3. 03MINORHigh investment-to-revenue ratio (53-173% of initial investment annually) with 6% royalty burden leaves minimal profit potential
  4. 04HIGHNo going concern statement is positive, but dramatic unit loss suggests underlying business model stress
  5. 05MINORQuick-service restaurant sector facing labor cost, food inflation, and consumer traffic pressures not addressed in disclosure

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.