B65/100FDD 2025

Please & Thank You — Litigation & Risk

Food & Beverage - Coffee & Tea · 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

Total from FDD Items 3 and 4

Bankruptcy (Item 4)

—

Franchisor or officer bankruptcy

Overall risk score

65 / 100

FranchiseVerdict composite

Rating

MODERATE

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

3 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

Kentucky

State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

01MEDNo Item 19 (Average Revenue/Net Income) disclosed — impossible to assess ROI on $537.5K-$1.1M investment
02MINOROnly 7 units system-wide with unknown growth trajectory — extremely small and potentially stagnant franchise
03HIGHGoing Concern status is FALSE — indicates financial distress or operational instability at corporate level
04MINORHigh investment range ($537.5K-$1.1M) paired with 8% royalty creates significant break-even burden without revenue transparency
05HIGHNo litigation disclosed but Going Concern status suggests potential undisclosed financial or legal issues

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.