B59/100FDD 2025
Travelin’ Tom’s Coffee — Litigation & Risk
Food & Beverage - Coffee & Tea · 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
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Kentucky
State whose law governs disputes — relevant if you're not based there
What drove the 59/100 rating
Risk Score Breakdown
- 01MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI claims or assess profitability
- 02HIGHGoing Concern status is FALSE — suggests potential financial instability at franchisor level despite unit growth
- 03MINORRapid unit growth of 85.6% YoY is unsustainable and may indicate aggressive recruitment masking underlying unit performance issues
- 04MINORRoyalty structure is extremely low ($3,000-$5,000 annually) — either units are unprofitable or franchisor is undercapitalized
- 05MINORHigh total investment range ($201,840-$259,325) relative to low ongoing royalties suggests weak unit economics
- 06MINOR10-year term with escalating royalties creates long-term lock-in with minimal franchisor financial transparency
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.