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B60/100FDD 2025

Simple Plan Foods — Litigation & Risk

Retail · 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
60 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Wisconsin
State whose law governs disputes — relevant if you're not based there

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MINOROnly 3 units in system with no historical data on sustainability or growth trajectory
  2. 02MEDNet income not disclosed in FDD — impossible to validate $708,358 average revenue claims or profitability
  3. 03HIGHGoing Concern status is FALSE — indicates potential financial instability or accounting issues at franchisor level
  4. 04MINORPer-meal royalty model (50 cents) creates unpredictable revenue for franchisor and pressure on franchisee margins
  5. 05MEDExtremely limited franchisee pool (3 units) makes validation and support network questionable
  6. 06MINORHigh initial investment ($107,650–$147,900) relative to system size and unproven unit economics

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.