B59/100FDD 2025
Uncle Louie G — Litigation & Risk
Food & Beverage - Ice Cream & Desserts · FDD Items 3, 4 & 5
Moderate — Review
2 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
2
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
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
2
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$340K
Avg loan size
$170K
Participating lenders
1
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
No
Franchisor can match any purchase offer when you try to sell
Governing law
New York
State whose law governs disputes — relevant if you're not based there
What drove the 59/100 rating
Risk Score Breakdown
- 01HIGHGoing Concern status is False — indicates financial distress or operational uncertainty at corporate level
- 02MINOR0% royalty structure may signal weak corporate support, cash flow problems, or inability to enforce standards
- 03MINORNo Item 19 (Average Unit Volume) disclosure — cannot assess profitability or validate $40,900-$175,000 investment ROI
- 04MINORRegulatory history: 2014-2015 NY AG investigation for unregistered franchise sales suggests compliance/disclosure violations
- 05MEDSmall unit count (30 locations) with only 25% YoY growth — modest expansion and limited brand recognition/proof of concept
- 06HIGHBreach of contract litigation over territorial rights (2014) indicates potential disputes over franchise agreement enforceability
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.