B63/100FDD 2026
Turquoise Wine Bar — 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
63 / 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
Not waived
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
Arizona
State whose law governs disputes — relevant if you're not based there
What drove the 63/100 rating
Risk Score Breakdown
- 01MINOROnly 1 existing unit makes validation impossible and suggests either brand-new or failed expansion strategy
- 02HIGHGoing Concern = False indicates franchisor financial distress or operational viability concerns
- 03MINORWide investment range ($305k-$600k) with no clear cost breakdown suggests undefined unit economics
- 04HIGHNo disclosed litigation but Going Concern status implies undisclosed legal/financial issues
- 05MINORSingle unit cannot support claimed average revenue of $961k — statistical validity highly questionable
- 06MINOR6% royalty on $961k revenue = only $57.7k annual royalty revenue — insufficient to support franchisor operations
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.