FranchiseVerdict
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D72/100FDD 2025

The Budlong Southern Chicken — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
72 / 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 72/100 rating

Risk Score Breakdown

  1. 01MINOROnly 6 units system-wide with unknown/likely stagnant growth indicates minimal scale and unproven model
  2. 02MEDNo disclosed average revenue or net income (missing Item 19) prevents ROI validation and suggests poor performance
  3. 03MINOROfficer Joshua Halpern named in counterclaim for misrepresentation and breach of contract at affiliated Big Chicken entity raises credibility concerns
  4. 04MINORNo protected territory creates direct competition risk and cannibalization between franchisees
  5. 05HIGHGoing concern status is FALSE, suggesting potential financial instability or undisclosed liabilities at corporate level
  6. 06MINORWide investment range ($134K-$828K) indicates unclear cost structure and poor financial controls
  7. 07MED6% royalty on undisclosed revenues provides no benchmarking; actual take-home profitability unknown

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.