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B65/100FDD 2024

Ultimate Sports Bar & Grill — Litigation & Risk

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

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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
65 / 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
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 operating unit makes performance claims unverifiable and system viability unproven
  2. 02MEDNo average revenue or net income disclosed (Item 19 missing) — impossible to assess ROI on $370k-$838k investment
  3. 03MINORWide investment range ($468k spread) suggests unclear cost structure or significant location variability
  4. 04MINOROnly 1 franchisee cannot validate franchisor support, operational systems, or replicability
  5. 05MINORHigh initial franchise fee ($40k) combined with 5% royalty on unproven revenue model
  6. 06MINOR10-year term locks franchisees 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.