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D72/100FDD 2025

The Rush Coffee — Litigation & Risk

Food & Beverage - Coffee & Tea · 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
Not required
You retain the right to sue in court
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
Tennessee
State whose law governs disputes — relevant if you're not based there

What drove the 72/100 rating

Risk Score Breakdown

  1. 01HIGHActive trademark cancellation litigation (filed Dec 2024) threatens brand identity and legal right to operate
  2. 02HIGHGoing concern status is FALSE — indicates potential solvency or operational viability issues at franchisor level
  3. 03MEDNo Item 19 financial performance data disclosed — unable to validate claimed profitability or ROI projections
  4. 04MINORUnusual royalty structure ($500-$750/month caps) suggests franchisor may be compensating for low revenue volumes
  5. 05MINOROnly 6 units with 66.7% YoY growth is modest expansion and indicates small, unproven system
  6. 06MEDHigh investment range ($72.7K-$245.6K) without disclosed average unit volumes creates ROI uncertainty
  7. 07MINORTrademark dispute creates legal risk of forced rebranding or system collapse if registration is cancelled

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.