FranchiseVerdict
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F83/100FDD 2021

Trailer Birds Hot Chicken — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
83 / 100
FranchiseVerdict composite
Rating
AVOID
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 83/100 rating

Risk Score Breakdown

  1. 01MINORZero operating franchise units with unknown growth trajectory indicates either pre-revenue system or complete unit collapse
  2. 02HIGHParent company has going concern warning, suggesting financial instability and potential inability to support franchisee operations
  3. 03MINORThree active class action lawsuits involving data security breach (April 2019–October 2020) expose franchisor to material liability and reputational damage
  4. 04MEDNo disclosed average revenue or net income prevents validation of investment viability and ROI projections
  5. 05MINORWide investment range ($38,733–$464,124) with lack of transparency suggests inconsistent site development costs or hidden expenses
  6. 06MED6% royalty on undisclosed sales base creates uncertainty; franchisees cannot benchmark profitability expectations
  7. 07MINOR20-year term is lengthy commitment to unproven brand with zero operating reference units

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.