D72/100FDD 2024
Planet Wings — Litigation & Risk
Food & Beverage - Quick Service · FDD Items 3, 4 & 5
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
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
2
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$235K
Avg loan size
$118K
Participating lenders
2
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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
New York
State whose law governs disputes — relevant if you're not based there
What drove the 72/100 rating
Risk Score Breakdown
- 01MEDSevere unit decline of 14.3% YoY (10 units remaining) suggests systemic operational or market problems
- 02MEDNo disclosed average revenue or net income data prevents ROI validation and indicates potential FDD transparency issues
- 03HIGHLitigation history involving franchise non-delivery and $50K settlement reimbursement raises fraud/execution concerns
- 04MINORHigh investment range ($395K-$818K) with 6% royalty fee structure is difficult to justify without profitability disclosure
- 05HIGHGoing concern status combined with shrinking franchise base indicates financial instability at corporate level
- 06MINOR10-year term is long given unit erosion rate; franchisees may be locked into declining system
- 07MINORProtected territory means nothing if brand cannot support existing locations or maintain operational standards
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.