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D75/100FDD 2025

Urban Wings — 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
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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 75/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 unit in system with unknown growth trajectory suggests early-stage or failing concept
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and is major transparency red flag
  3. 03HIGHGoing Concern status is FALSE, indicating franchisor may have financial viability issues
  4. 04MINORWide investment range ($214K-$566K) without performance metrics creates unpredictable cost structure
  5. 05MED6% royalty on undisclosed sales creates blind spot for profitability modeling
  6. 06MINORSingle unit franchise system offers no peer benchmarking or proven replication model

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.