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D72/100FDD 2025

Qazzaz Coffee — 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
0
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

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

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchisee unit in system indicates severe lack of scale, validation, and growth momentum
  2. 02MINORNo average revenue or net income disclosure (Item 19 absent) prevents ROI analysis on $183K–$325K investment
  3. 03HIGHGoing Concern status is FALSE, suggesting potential franchisor financial instability or operational viability concerns
  4. 04MINORWide investment range ($142K spread) with no corresponding financial performance data creates opacity around capital requirements
  5. 05MED6% royalty on undisclosed revenues makes it impossible to model break-even or profitability timeline
  6. 06MINORSingle unit franchise model offers zero peer franchisee network for support, troubleshooting, or supply chain leverage
  7. 07MINOR10-year term locks capital into unproven concept with no exit strategy if unit underperforms

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.