DBelow average35/100FDD 2025
Village Inn: Litigation & Risk
Full-Service Restaurants · FDD Items 3, 4 & 5
Elevated Risk
21 cases disclosed in FDD Items 3 and 4. Bankruptcy disclosed in Item 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 21
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- Disclosed
- Franchisor or officer bankruptcy
- Verdict score
- 35 / 100
- FranchiseVerdict composite · higher is better
- Rating
- D
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 24
- Government-backed loans issued
- Charge-off rate
- 10.5%
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- 2 loans
- Loans charged off or defaulted
- Total loan volume
- $17.7M
- Avg loan size
- $739K
- Participating lenders
- 10
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
- 1 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
Extracted from FDD Item 3
Litigation Detail
One concluded case involving Extreme Pita Franchising USA, Inc. (predecessor) settled for $20,000 on March 11, 2016. One concluded case involving Kahala Franchising, L.L.C. with cross-complaints filed but resolution not detailed in provided text.
What drove the 35/100 verdict
Risk Score Breakdown
- 01MEDPredecessor ABRH Chapter 11 (2020, closed 2021 — old/low weight)
- 02MINOR14 system-wide MTY suits, none brand-specific
- 03MINORNet growth -10.2%
- 04MINORStrong parent financials, financials are parent-level
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.