FranchiseVerdict
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F83/100FDD 2021

Sweeto Burrito — Litigation & Risk

Food & Beverage - Full Service · 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
83 / 100
FranchiseVerdict composite
Rating
AVOID
STRONG / MODERATE / CAUTION / AVOID

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
Utah
State whose law governs disputes — relevant if you're not based there

What drove the 83/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — indicates the franchisor itself may have financial stability issues or is a startup with unproven viability
  2. 02MINORZero existing franchise units with unknown growth trajectory — no operating proof of concept, no franchisee success stories to validate
  3. 03MEDAverage Revenue and Net Income completely undisclosed — unable to assess unit economics or ROI potential on $198.5K–$446.5K investment
  4. 04MINORHigh investment ceiling ($446.5K) with no financial performance data creates severe downside risk without upside visibility
  5. 05MINOR5-year term is relatively short; if franchisor fails or system collapses, franchisee has minimal recourse and no established buyout/support mechanisms
  6. 06HIGHNo disclosed litigation may indicate either excellent compliance OR insufficient scale to have attracted disputes (more likely the latter with zero units)

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.