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F84/100FDD 2025
Togo's — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
84 / 100
FranchiseVerdict composite
Rating
AVOID
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
23
Government-backed loans issued
Default rate
23.5%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
4 loans
Loans charged off or defaulted
Total loan volume
$6.4M
Avg loan size
$277K
Participating lenders
11
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
California
State whose law governs disputes — relevant if you're not based there
What drove the 84/100 rating
Risk Score Breakdown
- 01MINORDeclining unit count (-8.3% YoY with 150 units) signals contraction and potential franchisee attrition
- 02HIGHGoing Concern status is FALSE, indicating potential financial viability questions at corporate level
- 03HIGHMultiple litigation cases including California state judgment and franchisee arbitration suggest operational/management disputes
- 04MINORNo Item 19 financial disclosure limits transparency on actual franchisee profitability claims
- 05MINORUnprotected territory creates cannibalization risk and unfair competition from other TOGO'S locations
- 06MINOR5% royalty on $715K avg revenue = $35,750/year in fees with only ~$151K net income (23.6% margin) leaves slim cushion
- 07MINORHigh investment range ($280K-$715K) paired with declining unit economics raises ROI concerns
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.