B56/100FDD 2025
Slice House By Tony Gemignani — Litigation & Risk
Food & Beverage - Pizza · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
56 / 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
$2.3M
Avg loan size
$1.2M
Participating lenders
2
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 56/100 rating
Risk Score Breakdown
- 01MINORNo average revenue disclosure (Item 19) despite disclosing average net income of $570,542 — unusual and opaque financial reporting
- 02MINOR2022 DPFI consent order for illegal license sales (2016-2021) involving affiliate entities suggests regulatory compliance issues and potential reputational risk
- 03MINORHigh initial investment range ($455K-$1.2M) with no Item 19 revenue data makes ROI calculation impossible for prospective franchisees
- 04MINORRapid unit growth of 175% YoY from small base (12 units) suggests early-stage system vulnerability and unproven scalability
- 05HIGHGoing Concern flag is FALSE but system is only 12 units — limited operating history and track record for franchisees to evaluate
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.