FranchiseVerdict
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B56/100FDD 2025

Taziki’s Mediterranean Café — 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
56 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Alabama
State whose law governs disputes — relevant if you're not based there

What drove the 56/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 6.2% YoY indicates system contraction and potential franchisee dissatisfaction
  2. 02MEDNet income not disclosed in Item 19 — unable to verify actual profitability against $567k-$1.2M investment
  3. 03MINORHigh initial investment range ($567k-$1.2M) with no transparent income disclosure creates ROI uncertainty
  4. 04HIGHGoing Concern status is False — potential financial stability concerns at franchisor level
  5. 05MINOR4% royalty on $2M average revenue generates only ~$80k annually, tight margin for franchisor support

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.