D73/100FDD 2022
Savannah Seafood Shack — 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
73 / 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
Delaware
State whose law governs disputes — relevant if you're not based there
What drove the 73/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is FALSE — franchisor may face solvency/operational viability issues
- 02MINOROnly 1 unit in system with unknown growth trajectory — no proof of scalable model or franchisee success
- 03MINORWide investment range ($283K-$804K) suggests high variability in startup costs and unclear unit economics
- 04MINORFinancial data (Avg Revenue $2.5M, Net Income $642K) cannot be validated with single unit and no Item 19 disclosure
- 05HIGHNo litigation disclosed but Going Concern status raises franchisor financial/legal stability concerns
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.