FranchiseVerdict
Tomaso’s logo
D75/100FDD 2025

Tomaso’s — Litigation & Risk

Food & Beverage - Pizza · FDD Items 3, 4 & 5

Back to overview

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
Franchisor can compete
No
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Wisconsin
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 system with unknown growth trajectory suggests failed or pre-launch franchise model
  2. 02MINORNo Item 19 (Average Revenue/Net Income) disclosure eliminates ability to project ROI on $145k-$319k investment
  3. 03HIGHGoing Concern status is FALSE, indicating potential financial instability or recent restructuring of franchisor
  4. 04MINORHybrid royalty structure ($125/week minimum) punishes low-revenue locations and suggests franchisor cash flow concerns
  5. 05MINOR10-year term locks franchisee into relationship with unproven single-unit 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.