FranchiseVerdict
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D72/100FDD 2025

Sigri Indian BBQ — Litigation & Risk

Food & Beverage - Quick 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
72 / 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
Nevada
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 2 operating units suggests an extremely young or stagnant franchise system with no demonstrated scalability
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and raises transparency concerns
  3. 03HIGHGoing Concern status is False, indicating potential financial instability at the franchisor level
  4. 04MEDHigh investment range ($200,950–$480,833) combined with undisclosed profitability metrics creates severe ROI uncertainty
  5. 05MINOR6% royalty on gross revenue (not net) means franchisees pay regardless of profitability
  6. 06MEDExtremely limited franchisee base (2 units) provides no meaningful performance benchmarks or peer support network
  7. 07HIGHNo disclosed litigation is positive, but minimal unit count limits the statistical relevance of this metric

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.