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D77/100FDD 2025

Pod Plug — Litigation & Risk

Retail · 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
77 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 77/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchised unit with unknown growth trajectory indicates system is not scaling and may be pre-revenue or failing to attract franchisees
  2. 02HIGHGoing Concern = False suggests franchisor financial instability or inability to support franchisee operations long-term
  3. 03MINORReported average net income of $587.11 is implausibly low (potentially $587.11/month = $7,046/year after 8% royalties), indicating either severely underperforming unit(s) or unreliable financial reporting
  4. 04MINORNo Item 19 (Financial Performance Representations) despite providing revenue/income figures creates legal exposure and suggests cherry-picked or unaudited data
  5. 05MINORZero franchise fee with $52k-$105k investment is unusual; unclear what initial capital actually funds or if franchisor has financial incentive to support franchisees
  6. 06MINOR10-year term with only 1 unit suggests franchisor lacks confidence to offer shorter commitments or has difficulty retaining franchisees

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.