FranchiseVerdict
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D69/100FDD 2023

The Original Steaks & Hoagies — 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
69 / 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
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
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 69/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial performance data disclosed — unable to validate revenue/profit claims
  2. 02MINOROnly 8 units in system with unknown growth trajectory — suggests stagnant or declining franchise
  3. 03HIGHGoing Concern status is FALSE — potential financial instability at franchisor level
  4. 04MINORWide investment range ($112k-$269k) with no corresponding revenue disclosure — high uncertainty
  5. 05MED6% royalty on undisclosed gross sales creates unpredictable unit economics
  6. 06HIGHNo litigation disclosed is positive, but combined with other factors suggests small, under-scrutinized system

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.