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B55/100FDD 2025
Tikka Shack / Masala Wok — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
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
55 / 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
8
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 55/100 rating
Risk Score Breakdown
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $1.08M average revenue claim — cannot verify profitability or validate ROI claims
- 02HIGHGoing Concern status is FALSE — indicates potential financial instability at franchisor level, raising questions about support, marketing, and system sustainability
- 03MINORExplosive 54.5% YoY unit growth (9 units added to 23-unit system) may indicate unsustainable recruitment over profitability; typical mature franchises grow 10-15% annually
- 04MEDHigh investment range ($498.5K–$721.5K) paired with undisclosed net income creates opacity on break-even timeline and actual ROI
- 05HIGHNo litigation disclosed is neutral but combined with Going Concern status suggests either poor disclosure or genuine operational distress
- 06MINOR6% royalty is reasonable but becomes problematic if franchisees cannot achieve $1.08M in revenue consistently across the growing 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.