A37/100FDD 2025
Protein Bar & Kitchen — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
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
37 / 100
FranchiseVerdict composite
Rating
STRONG
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
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
Illinois
State whose law governs disputes — relevant if you're not based there
What drove the 37/100 rating
Risk Score Breakdown
- 01MINORExplosive 200% YoY unit growth (16 units) suggests early-stage instability and unproven scalability
- 02MINORHigh initial investment ($369.5K-$685K) relative to average net income ($191K) yields 1.8-3.6 year payback with no margin for error
- 03MINORModest 6% royalty may indicate underpricing or insufficient franchisor support infrastructure for rapid expansion
- 04MINOROnly 16 operating units limits statistical reliability of average revenue/income data; outliers heavily skew results
- 05MEDNo disclosed Item 19 (financial performance representations) requires heavy reliance on unverified averages
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.