FranchiseVerdict
TCBY logo
F84/100FDD 2025

Tcby — 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
84 / 100
FranchiseVerdict composite
Rating
AVOID
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
211
Government-backed loans issued
Default rate
22.8%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
47 loans
Loans charged off or defaulted
Total loan volume
$31.6M
Avg loan size
$150K
Participating lenders
90

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

What drove the 84/100 rating

Risk Score Breakdown

  1. 01MEDSevere unit decline of 13.8% YoY (125 units) indicates contracting system and potential brand viability concerns
  2. 02HIGHNo going concern statement is FALSE, suggesting franchisor may have disclosed going concern warnings in FDD Item 5
  3. 03MEDNet income not disclosed prevents ROI analysis; with $429k avg revenue and 6% royalty, franchisees may struggle to achieve profitability
  4. 04MINORUnprotected territory creates direct competition risk—multiple franchisees could operate in same market
  5. 05MINORWide investment range ($135k-$699k) suggests inconsistent unit economics and unclear startup costs
  6. 06MINORItem 19 (Financial Performance) appears absent, limiting ability to validate earnings claims
  7. 07MINORDeclining unit base suggests franchisees are exiting faster than entering—red flag for satisfaction and economics

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.