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B65/100FDD 2025

Valentino’s Restaurant — Litigation & Risk

Food & Beverage - Pizza · 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

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
6
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1.5 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
Nebraska
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MINORNo Item 19 financial performance disclosure — cannot validate ROI claims or typical unit economics
  2. 02MINORWide investment range ($49.5K–$779K) suggests inconsistent costs and unclear unit profitability tiers
  3. 03MINOROnly 32 units system-wide with unknown growth trajectory — small, potentially stagnant franchise base
  4. 04HIGHGoing Concern indicator is FALSE (unusual phrasing) — potential ambiguity on franchisor financial stability
  5. 05MINORRoyalty structure creates floor ($1,000/mo minimum for Express) even during slow months, risking negative cash flow
  6. 06MED15-year term is lengthy commitment with no disclosed renewal or exit data
  7. 07MINORRestaurant industry has notoriously low margins (3-5% net) — no disclosure makes risk assessment impossible

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.