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D71/100FDD 2025

Taffer’s Tavern — Litigation & Risk

Food & Beverage - Full Service · 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
71 / 100
FranchiseVerdict composite
Rating
CAUTION
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
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 71/100 rating

Risk Score Breakdown

  1. 01MEDCatastrophic unit decline of 75% year-over-year indicates systemic franchise failure or mass closures
  2. 02HIGHTwo active litigation cases involving affiliate brands alleging fraudulent misrepresentation and fraudulent inducement suggest legal/operational issues within corporate structure
  3. 03MINORNo net income disclosure despite $2.97M average revenue raises transparency concerns and suggests potential unprofitability at unit level
  4. 04HIGHGoing concern warning indicates material uncertainty about franchisor's ability to continue operations
  5. 05MINORNo protected territory combined with high initial investment ($812K-$1.35M) exposes franchisees to cannibalization risk
  6. 06MED6% royalty on gross sales (not net) compounds risk if units are unprofitable as disclosed revenues suggest

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.