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A54/100FDD 2025
Shuckin’ Shack Oyster Bar — 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
54 / 100
FranchiseVerdict composite
Rating
STRONG
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
16
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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
North Carolina
State whose law governs disputes — relevant if you're not based there
What drove the 54/100 rating
Risk Score Breakdown
- 01MEDNet income not disclosed in FDD — unable to assess true profitability despite $1.3M average revenue
- 02MEDOnly 18 units system-wide with unknown growth trajectory — suggests limited brand scale and unproven expansion model
- 03MINOREscalating royalty structure (3.5% → 5.5% by year 3) reduces profitability significantly after initial period
- 04MINORWide investment range ($456K–$1.4M) indicates high variability in unit economics and location-dependent performance
- 05HIGHGoing Concern status is FALSE — potential financial instability or recent restructuring at corporate level
- 06MEDHigh initial investment relative to disclosed average revenue creates extended breakeven risk
- 07MINORSeasonal restaurant category (oyster bar) with no mention of off-season mitigation strategies
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.