B65/100FDD 2023
Wet Willie’s — Litigation & Risk
Food & Beverage - Full Service · FDD Items 3, 4 & 5
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
Georgia
State whose law governs disputes — relevant if you're not based there
What drove the 65/100 rating
Risk Score Breakdown
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $2.78M avg revenue claim
- 02HIGHGoing Concern status indicates potential financial instability or solvency issues at corporate level
- 03MINOROnly 11 units with unknown growth trajectory suggests stagnant or contracting franchise system
- 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 05MINORWide investment range ($716.5K-$1.6M) with no correlation to unit economics or market size
- 06MINORHigh royalty burden (5% of gross) with unknown profitability makes breakeven analysis 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.