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B61/100FDD 2025

Sammy’s Sliders — Litigation & Risk

Food & Beverage - Full Service · 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
61 / 100
FranchiseVerdict composite
Rating
MODERATE
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
North Carolina
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01MEDOnly 2 existing units with unknown growth trajectory indicates extremely limited proof of concept and franchise system maturity
  2. 02MEDNet income not disclosed in FDD Item 19 prevents accurate ROI assessment; average revenue of $1.11M is meaningless without profitability data
  3. 03MINORHigh investment range ($328K-$712K) paired with only $2,250 minimum monthly royalty ($27K annually) suggests unclear unit economics and potential hidden costs
  4. 04MINORRoyalty structure caps at 5% of gross sales, creating potential misalignment if franchisees game revenue reporting or shift to low-margin products
  5. 05MINOR10-year term with $40K franchise fee is standard, but combined with 2-unit system raises questions about franchisor's long-term viability and support infrastructure

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.