B62/100FDD 2025
Savvy Sliders — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
62 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
2
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$696K
Avg loan size
$348K
Participating lenders
2
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
Michigan
State whose law governs disputes — relevant if you're not based there
What drove the 62/100 rating
Risk Score Breakdown
- 01HIGHCriminal tax fraud indictment involving both principals (Happy Asker and Maher Bashi) creates severe legal and reputational risk
- 02HIGHActive civil litigation from Happy's Pizza investors alleging false representations about liquor licenses suggests pattern of misleading franchisees
- 03HIGHGoing Concern status is FALSE — indicates auditor doubts about franchisor's ability to continue operations
- 04MEDNet Income not disclosed despite $1.12M average unit revenue — suggests profitability problems or financial opacity
- 05MINORHigh investment range ($352K-$1.07M) combined with 5-6% royalties creates breakeven challenges if margins compressed
- 06MINORNo Item 19 financial performance representations available for due diligence validation
- 07HIGHLitigation pattern suggests potential misrepresentation of unit economics and regulatory compliance to franchisees
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.