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F83/100FDD 2022
Stalk & Spade — 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
83 / 100
FranchiseVerdict composite
Rating
AVOID
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
3 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
Minnesota
State whose law governs disputes — relevant if you're not based there
What drove the 83/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern warning indicates the franchisor may be financially unstable or facing operational viability issues
- 02MINOROnly 1 existing unit suggests minimal system track record, no proven replicable model, and extreme difficulty validating performance claims
- 03MINORNo average revenue or net income disclosure (no Item 19) prevents ROI assessment and suggests franchisor cannot or will not demonstrate unit profitability
- 04MINORHigh initial investment range ($767K–$1.3M) paired with unproven economics creates severe downside risk
- 05MINORUnknown growth trajectory with single unit indicates stagnation or inability to scale; no growth pipeline communicated
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.