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A54/100FDD 2025

Two Men and a Junk Truck — Litigation & Risk

Other · 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
54 / 100
FranchiseVerdict composite
Rating
STRONG
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
Georgia
State whose law governs disputes — relevant if you're not based there

What drove the 54/100 rating

Risk Score Breakdown

  1. 01MINORNo financial performance disclosure (Item 19) — cannot validate the 210% unit growth claim translates to profitability
  2. 02MINORRapid expansion (210% YoY growth) without transparent unit economics raises sustainability concerns
  3. 03HIGHParent company litigation history (Arby's/Dunkin' no-poaching settlements + data breach consent agreement) indicates compliance and operational governance issues that may affect franchise support
  4. 04MEDHigh royalty rate (7%) combined with undisclosed net income makes true ROI analysis impossible
  5. 05MINORWide investment range ($83K–$349K) suggests inconsistent territory valuations or poorly defined startup costs

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.