FranchiseVerdict
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B60/100FDD 2025

The Great Greek Mediterranean Grill — Litigation & Risk

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

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Moderate — Review

5 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
5
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
60 / 100
FranchiseVerdict composite
Rating
MODERATE
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
44
Government-backed loans issued
Default rate
12.5%
vs <3% typical · system-wide
5-yr default rate
12.5%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$29.8M
Avg loan size
$678K
Participating lenders
14

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
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
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 60/100 rating

Risk Score Breakdown

  1. 01HIGHMultiple regulatory violations and litigation including FTC injunction against affiliate for earnings claims and fee misrepresentation
  2. 02MINOR77 units with 38% YoY growth masks potential base erosion—verify if growth is net new or includes reacquisitions of failed locations
  3. 03HIGHNo Item 19 financial performance disclosure (Going Concern = False) despite $1.56M average revenue claims—cannot independently verify earnings
  4. 04HIGHAggressive litigation history across multiple states (CA trademark, MD unregistered sales, CA consent orders) suggests compliance culture problems
  5. 05MINORHigh investment range ($526K–$1.18M) with 6% royalty requires $93K–$71K annual royalty on average revenues before debt service and operating costs
  6. 06MINOR35-year term is unusually long for a growing brand; may indicate difficulty with franchisee retention or renewal rates

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.