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D73/100FDD 2025

Wahlburgers — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
73 / 100
FranchiseVerdict composite
Rating
CAUTION
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
Michigan
State whose law governs disputes — relevant if you're not based there

What drove the 73/100 rating

Risk Score Breakdown

  1. 01MEDCatastrophic unit decline of 80.2% YoY (25 units remaining) signals systemic franchise failure or major restructuring
  2. 02MEDNo disclosed average revenue or net income prevents ROI validation; 8% royalty on unknown sales is impossible to model
  3. 03HIGHLitigation history (2017 fiduciary duty breach, $900K settlement) indicates governance issues and potential franchisor credibility problems
  4. 04HIGHGoing concern status suggests financial distress at corporate level, threatening operational support and brand viability
  5. 05MINORHigh total investment ($1.08M–$2.8M) combined with declining system creates disproportionate risk exposure

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.