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F80/100FDD 2022

Wich! — Litigation & Risk

Food & Beverage - Quick 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
80 / 100
FranchiseVerdict composite
Rating
AVOID
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
51
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
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 80/100 rating

Risk Score Breakdown

  1. 01MINORZero operating units despite franchise model—indicates either brand-new concept with no track record or failed system
  2. 02HIGHGoing Concern status is FALSE, suggesting financial viability concerns at franchisor level
  3. 03MEDNo average revenue or net income disclosed (missing Item 19)—impossible to assess ROI or validate $170k-$598k investment thesis
  4. 04MINORRoyalty structure allows unilateral increase to 6% of gross sales with only $500/week floor—franchisee has no cost control predictability
  5. 05MINORTerritory not protected—multi-unit competition within same area could cannibalize sales and franchisee profitability
  6. 06HIGHNo disclosed litigation but zero units existing—unclear if this is pre-launch or a relaunched/restructured failed concept
  7. 07MINOR$20,000 franchise fee plus $170k-$598k total investment creates high sunk cost with zero operational precedent to evaluate

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.