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B65/100FDD 2024

We Dat’s Chicken and Shrimp — 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
65 / 100
FranchiseVerdict composite
Rating
MODERATE
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
Louisiana
State whose law governs disputes — relevant if you're not based there

What drove the 65/100 rating

Risk Score Breakdown

  1. 01HIGHGoing Concern status is FALSE — suggests material financial instability or uncertainty at franchisor level
  2. 02MEDOnly 4 units system-wide indicates minimal scale, limited brand recognition, and unproven replicable model
  3. 03MEDItem 19 (Average Revenue/Net Income) not disclosed — impossible to validate unit economics or ROI on $181k-$282k investment
  4. 04MINOR7% royalty on unknown revenue base creates unpredictable franchisor support funding and ongoing profitability risk
  5. 05MEDNo disclosed unit growth trajectory — cannot assess whether system is expanding, stagnant, or contracting
  6. 06MEDExtremely small franchise system (4 units) means limited operational data, weak purchasing power, and high failure risk if any unit closes

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.