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B64/100FDD 2025

Sunoco Retail LLC – Area Representative Program — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
64 / 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
139
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 64/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-0.8% YoY) indicates system contraction and potential saturation or performance issues
  2. 02MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI assessment and suggests weak unit economics
  3. 03HIGHGoing concern status is FALSE, indicating potential financial instability or uncertainty at franchisor level
  4. 04HIGHActive litigation involving breach of contract and personal injury liability creates legal and reputational risk
  5. 05MINORUnprotected territory creates cannibalization risk where ARs compete for same royalty revenue from overlapping stores
  6. 06MINORMinimum $500/month guarantee appears modest and insufficient to justify $20K-$38.5K investment without growth potential
  7. 07MINORIndirect revenue model (dependent on APLUS franchisee performance, not direct AR earnings) creates misaligned incentives

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.