FranchiseVerdict
Stricklands logo
B65/100FDD 2025

Stricklands — Litigation & Risk

Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5

Back to overview

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
65 / 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
5 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
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDOnly 4 units in system with no historical growth data — extremely small franchise with limited track record and scaling proof
  2. 02MINORAverage net income of $406,684 appears inflated relative to $339,500-$596,000 investment range — suggests either cherry-picked data or unsustainable margins
  3. 03MINORNo average revenue disclosure despite net income provided — opacity on top-line performance prevents ROI validation and raises data integrity concerns
  4. 04HIGHGoing Concern status is FALSE — suggests potential financial instability or viability questions with the franchisor
  5. 05MEDFranchise fee of only $25,000 with high investment range ($339,500-$596,000) indicates bulk of capital goes to buildout with limited franchisor skin-in-the-game
  6. 06MINOR100% YoY unit growth mathematically meaningless with 4-unit system — could represent adding 1-2 units; insufficient data to demonstrate system viability

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.