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AStrongest tier90/100FDD 2026

Rocket Fizz: Litigation & Risk

Quick-Service Restaurants · 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)
None
Franchisor or officer bankruptcy
Verdict score
90 / 100
FranchiseVerdict composite · higher is better
Rating
A
A / B / C / D / F verdict grade

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
21
Government-backed loans issued
Charge-off rate
N/A
vs 16% franchise average
5-yr charge-off rate
N/A
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$3.1M
Avg loan size
$150K
Participating lenders
16

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
Nevada
State whose law governs disputes. Relevant if you're not based there

Extracted from FDD Item 3

Litigation Detail

No litigation required to be disclosed

What drove the 90/100 verdict

Risk Score Breakdown

  1. 01HIGHNo litigation or bankruptcy
  2. 02MINORNet worth $1.10M, net income $1.59M
  3. 03MED103 units, Item 19 disclosed, audited

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.