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D75/100FDD 2026

The Pickle Pad — Litigation & Risk

Other · 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
75 / 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
Delaware
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in entire system indicates brand is pre-revenue or failed to scale; no growth trajectory data provided
  2. 02HIGHGoing Concern status is False, suggesting financial viability questions at corporate level
  3. 03MEDNo Item 19 (Average Revenue/Net Income) disclosed—impossible to validate ROI on $1.5M-$4M investment
  4. 04MEDHigh investment range ($1.5M-$4M) paired with 6% royalty on undisclosed revenue creates unpredictable cash flow
  5. 05MINOR10-year term with single-unit system suggests either new concept or struggling franchisor unable to attract operators
  6. 06HIGHNo litigation disclosed could indicate inadequate legal history or reporting; single unit makes disputes unlikely but not reassuring

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.